| Metric | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥325.1B | ¥319.9B | +1.6% |
| Operating Income | ¥19.9B | ¥15.5B | +28.5% |
| Ordinary Income | ¥21.7B | ¥15.9B | +36.0% |
| Net Income | ¥13.0B | ¥8.9B | +46.1% |
| ROE | 4.7% | 3.3% | - |
Cumulative results for FY2026 Q3 were Revenue of ¥325.1B (YoY +¥5.2B, +1.6%), Operating Income of ¥19.9B (YoY +¥4.4B, +28.5%), Ordinary Income of ¥21.7B (YoY +¥5.8B, +36.0%), and Net Income attributable to owners of the parent of ¥13.0B (YoY +¥4.1B, +46.1%). While topline growth was modest, significant profit growth was achieved due to improved operating margin. Operating margin improved to 6.1% (up +1.3pt from 4.8% a year earlier), and net profit margin improved to 4.0% (up +1.2pt from 2.8%), indicating enhanced profitability. Full-year guidance calls for Revenue of ¥476.2B (YoY +9.9%), Operating Income of ¥27.8B (YoY +27.4%), and Ordinary Income of ¥28.4B (YoY +26.4%), with progress through Q3 broadly on track.
[Profitability] ROE 4.7% (improved from 3.3% a year earlier; on par with the 2025-Q3 industry median of 4.9%), ROA 2.6% (improved from 1.8% a year earlier; below the industry median of 3.3%), Operating Margin 6.1% (+1.3pt from 4.8% a year earlier; 1.2pt below the industry median of 7.3%), Net Profit Margin 4.0% (+1.2pt from 2.8% a year earlier; 1.4pt below the industry median of 5.4%). In the DuPont breakdown, a Net Profit Margin of 4.0%, Total Asset Turnover of 0.642x, and Financial Leverage of 1.84x compose ROE, with net margin improvement being the main driver of ROE improvement. The effective tax rate is 38.1%, resulting in a tax burden coefficient of 0.618. [Cash Quality] Cash and deposits of ¥182.0B provide cash coverage of 1.32x against current liabilities of ¥138.1B. [Investment Efficiency] Total Asset Turnover 0.642x (nearly flat versus 0.645x a year earlier). [Financial Soundness] Equity Ratio 54.3% (nearly flat versus 54.5% a year earlier; 9.6pt below the industry median of 63.9%), Current Ratio 200.5% (below the industry median of 267% but at a healthy level), Quick Ratio 177.6%, and Debt-to-Equity Ratio 0.84x, maintaining a conservative capital structure.
Cash and deposits increased by ¥4.6B from ¥177.4B in the same period last year to ¥182.0B, presumably supported by higher operating profit. Current assets were ¥276.7B, up ¥10.4B from ¥266.3B a year earlier, mainly due to increases in cash and accounts receivable. Working capital stood at ¥138.8B (up ¥3.6B from ¥135.2B a year earlier), indicating ample liquidity. Cash coverage of 1.32x against current liabilities of ¥138.1B suggests sufficient short-term payment capacity. In working capital efficiency, advances received of ¥69.3B indicate a structure whereby customer prepayments contribute to funding. Fixed assets were ¥229.5B, a slight decrease from ¥230.5B a year earlier, suggesting restrained large-scale capital expenditures. Investments and other assets were ¥163.5B, accounting for 32.3% of total assets, with investment securities and intangible assets maintained at a meaningful scale. Total liabilities of ¥231.4B increased by ¥5.2B from ¥226.2B a year earlier; however, with shareholders’ equity of ¥274.8B, the Debt-to-Equity Ratio remains at a healthy 0.84x, indicating stable financing activities.
With Ordinary Income of ¥21.7B versus Operating Income of ¥19.9B, non-operating net income was approximately ¥1.8B, indicating a contribution from non-operating items. The compression from Gross Profit of ¥130.2B to Operating Income of ¥19.9B is attributable to SG&A expenses of ¥194.8B (59.9% of revenue), and efficiency gains in SG&A contributed to profit improvement. At the Ordinary Income level, there was a +9.1% uplift versus Operating Income, with financial income such as interest income and equity in earnings of affiliates supplementing profitability. Net Income of ¥13.0B was 60.0% of Ordinary Income, reflecting corporate taxes at an effective tax rate of 38.1%. The tax burden coefficient of 0.618 increased from 0.560 a year earlier, acting as a post-tax profit compression factor; however, higher pre-tax profit led to a robust +46.1% increase in net income. The structure in which advances received of ¥69.3B account for 50.2% of current liabilities suggests pre-service cash inflows, providing a lead effect to Operating Cash Flow and contributing positively to cash-based earnings stability. The increase in cash and deposits is consistent with higher operating profit, and the quality of earnings can be assessed as relatively favorable.
The payout ratio is at a high 74.3% (while the annual dividend of ¥14 and the assumed total dividends of ¥4.56B translate into 31.2% based on the full-year net income forecast of ¥14.6B, the annualized rate based on Q3-to-date net income of ¥13.0B is high), limiting the capacity to maintain dividends if profits fall short of expectations. Cash and deposits of ¥182.0B are sufficient as a source for dividends, but with Operating Cash Flow undisclosed, the sustainability of dividends cannot be confirmed. Intangible assets and investments and other assets account for 32.3% of total assets, and if impairment risks or delays in monetization occur, asset values and ROE could be pressured. SG&A expenses remain high at 59.9% of Revenue; if sales growth slows, the operating margin may deteriorate and fixed costs could pressure profitability.
[Position within Industry] (Reference Information, Our Research) Profitability: ROE of 4.7% is on par with the industry median of 4.9% (2025-Q3, 65 manufacturing companies), placing the company in the mid-range within the industry. Operating Margin of 6.1% is 1.2pt below the industry median of 7.3%, with heavy SG&A burden relatively depressing profitability. Net Profit Margin of 4.0% is 1.4pt below the industry median of 5.4%, indicating room for efficiency improvement at the operating level. Soundness: The Equity Ratio of 54.3% is 9.6pt below the industry median of 63.9%, but the Debt-to-Equity Ratio of 0.84x is at a conservative level, indicating healthy finances. The Current Ratio of 200.5% is below the industry median of 267%, but close to the lower bound of the industry IQR at 200%, suggesting short-term liquidity is secured. Efficiency: Total Asset Turnover of 0.642x is estimated to be moderate relative to the industry’s capital intensity. Growth: Sales growth of +1.6% is below the industry median of +2.8%, indicating a slower growth pace than the industry average. Note: Industry: Manufacturing (65 companies); Comparison: 2025 Q3; Source: Our aggregation of public financial data.
Expansion of the bottom line driven by operating margin improvement is the key highlight, with progress in SG&A efficiency and fixed cost absorption. Operating Income grew +28.5% YoY versus Revenue growth of +1.6% YoY, demonstrating cost control that delivers profit growth even with flat sales. While a high payout ratio and the maintenance of an annual dividend of ¥14 underscore a commitment to shareholder returns, there are constraints on dividend flexibility in response to profit fluctuations. As Operating Cash Flow is undisclosed, future disclosures should confirm the linkage between profits and cash flow and the basis for dividends. Progress toward full-year guidance is on track as of Q3, and the continuation of the revenue and profit growth trajectory is anticipated. The Equity Ratio and ROE are around the industry median, suggesting a management policy that aims to enhance profitability while maintaining financial soundness.
This report is an earnings analysis document automatically generated by AI based on XBRL financial summary data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information aggregated by our company based on publicly available financial data. Investment decisions are your own responsibility; consult a professional as necessary before proceeding.