About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Net Sales | ¥32.04B | ¥29.52B | +8.6% |
| Profit Before Tax | ¥1.26B | ¥2.15B | -41.5% |
| Net Income | ¥1.04B | ¥1.76B | -41.2% |
| Net Income Attributable to Owners | ¥1.04B | ¥1.76B | -41.2% |
| Total Comprehensive Income | ¥1.17B | ¥1.95B | -40.2% |
| Basic EPS | ¥49.23 | ¥83.77 | -41.2% |
| Diluted EPS | ¥49.23 | ¥83.77 | -41.2% |
| Dividend Per Share | ¥13.40 | ¥13.40 | +0.0% |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Total Assets | ¥37.60B | ¥35.72B | +¥1.88B |
| Total Equity | ¥13.81B | ¥12.96B | +¥853M |
| Shareholders' Equity | ¥13.80B | ¥12.94B | +¥853M |
| Equity Ratio | 36.7% | 36.3% | +0.4% |
| Item | Value |
|---|---|
| Net Profit Margin | 3.2% |
| Item | YoY Change |
|---|---|
| Net Sales YoY Change | +8.6% |
| Profit Before Tax YoY Change | -41.5% |
| Net Income YoY Change | -41.2% |
| Net Income Attributable to Owners YoY Change | -41.2% |
| Total Comprehensive Income YoY Change | -40.2% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 21.06M shares |
| Treasury Stock | 0 shares |
| Average Shares Outstanding | 21.06M shares |
| Book Value Per Share | ¥655.77 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥13.40 |
| Q3 Dividend | ¥26.80 |
| Item | Forecast |
|---|---|
| Net Sales Forecast | ¥70.91B |
| Net Income Forecast | ¥2.69B |
| Net Income Attributable to Owners Forecast | ¥2.69B |
| Basic EPS Forecast | ¥127.96 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Verdict: Mixed quarter with solid topline growth but a sharp profit contraction, resulting in margin compression and a mid-single digit ROE. Revenue reached 320.42 (100M JPY), up 8.6% YoY, evidencing demand resilience and/or price pass-through. Profit before tax was 12.57 (100M JPY), and net income fell to 10.37 (100M JPY), down 41.2% YoY. EPS came in at 49.23 JPY, consistent with the net income decline. Using the reported YoY rates, we estimate prior-year net income at roughly 17.6 (100M JPY) and prior-year revenue at roughly 295.1 (100M JPY). That implies the net margin declined from about 6.0% to 3.2%, a compression of roughly 270–280 bps YoY. The DuPont breakdown shows a 3.2% net margin, 0.852x asset turnover, and 2.72x financial leverage, yielding a calculated and reported ROE of 7.5%. Asset efficiency remained decent (asset turnover 0.852x), and balance sheet leverage was moderate (equity ratio 36.7%). However, profitability deterioration dominated the quarter, as revenue growth did not translate into earnings growth. The earnings mix below operating line is unclear due to non-operating items being unreported; thus, operating margin trends and sources of profit pressure cannot be pinpointed. Cash flow quality cannot be assessed because OCF and FCF are not disclosed for the period. Dividend visibility is partial: Q3 DPS was 26.80 JPY and the calculated payout ratio is 27.2%, suggesting room to maintain dividends, but cash coverage is unknown. Forward-looking, sustaining revenue momentum while restoring gross/operating margins will be key to re-expanding ROE toward low double digits. Monitoring input costs (e.g., resin/commodities), pricing power, and FX will be critical to gauge margin recovery potential. Given the substantial profit drop amid higher sales, cost discipline and mix management appear to be the immediate levers for improvement. Overall, the company remains solvent with moderate leverage but must address margin pressure to improve earnings quality and shareholder returns.
ROE decomposition: 7.5% ROE = 3.2% Net Profit Margin × 0.852x Asset Turnover × 2.72x Financial Leverage. The component that changed most YoY is the net profit margin, inferred from -41.2% YoY net income against +8.6% YoY revenue, implying c. 270–280 bps margin compression (from ~6.0% to ~3.2%). Business drivers likely include gross margin pressure (input cost inflation or weaker pricing), adverse sales mix, and/or higher operating expenses relative to sales; non-operating swings cannot be ruled out but are unreported. Asset turnover at 0.852x looks consistent for a trading/distribution-heavy model and likely did not decline materially YoY given the revenue growth versus reported asset base. Financial leverage of 2.72x (equity ratio 36.7%) appears stable and not the source of ROE volatility. The margin compression could be partially cyclical (commodity price normalization, FX) and partially execution-related (pricing, mix, SG&A efficiency); sustainability of lower margins is not assumed, but recovery requires evidence in subsequent quarters. Concerning trend to flag: cost growth likely exceeded revenue growth, given the scale of NI contraction; without SG&A disclosure, we cannot quantify, but the earnings delta points to operating deleverage.
Topline growth was healthy at +8.6% YoY to 320.42 (100M JPY), demonstrating demand resilience. However, profit before tax of 12.57 and net income of 10.37 (−41.2% YoY) indicate growth did not translate into earnings, suggesting margin headwinds. The revenue increase appears organic/volume- and/or price-driven, but profitability suffered, likely due to higher input costs, less favorable product/customer mix, or limited pricing power. Recurrence vs one-time effects are unclear without operating and non-operating breakdowns; we treat the margin decline as the main swing factor. Outlook hinges on margin normalization as supply chains and input costs stabilize and as the company executes pricing and mix improvements. Near term, a return to a ~5–6% net margin would materially lift ROE; absent that, ROE may remain mid-single digit. Key forward drivers: resin/commodity prices, FX, demand in core end-markets, and SG&A discipline.
Total assets were 375.98 (100M JPY) and total equity 138.09 (100M JPY), yielding an equity ratio of 36.7%, which is moderate for a distribution-centric business model. Financial leverage (assets/equity) is 2.72x; D/E and interest-bearing debt are unreported, so solvency detail is limited. Current ratio and quick ratio are unreported; therefore, we cannot assess short-term liquidity formally and cannot warn on a Current Ratio < 1.0. Maturity mismatch risk (short-term debt vs current assets) cannot be evaluated due to lack of disclosure. No off-balance sheet obligations are reported in the provided data. No explicit red flags on excessive leverage (D/E > 2.0) can be drawn from available metrics, but liquidity buffers remain unknown.
Operating cash flow (OCF), investing CF, and free cash flow (FCF) are unreported; OCF/Net Income and FCF coverage are thus not calculable. Consequently, we cannot validate earnings quality via cash conversion, nor can we assess working capital dynamics (receivables, inventories, payables). Without cash flow data, sustainability of dividend and capex commitments cannot be verified. No signs of working capital manipulation can be evaluated from the provided dataset.
Q3 DPS was 26.80 JPY and the calculated payout ratio is 27.2%, implying a conservative payout on reported earnings (EPS 49.23 JPY). Annual DPS is unreported, so full-year return to shareholders is unclear. With a payout ratio in the 20–30% range, there appears to be headroom to maintain dividends, contingent on cash generation; however, FCF coverage is not calculable. Policy outlook cannot be inferred without management guidance; stability likely depends on near-term margin recovery and working capital needs in a growing topline environment.
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Relative Positioning: Within distribution/trading-oriented peers, the company shows healthy revenue momentum but weaker earnings conversion this quarter. Capital structure is moderate, supporting resilience, but comparative attractiveness hinges on restoring margins to prior levels to lift ROE above mid-single digits.
This analysis was auto-generated by AI. Please note the following: