| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥315.3B | ¥291.2B | +8.3% |
| Operating Income / Operating Profit | ¥41.5B | ¥46.3B | -10.4% |
| Ordinary Income | ¥45.8B | ¥40.9B | +12.0% |
| Net Income / Net Profit | ¥27.0B | ¥18.8B | +43.3% |
| ROE | 2.0% | 1.3% | - |
FY2026 Q1 results: Revenue ¥315.3B (YoY +¥24.1B +8.3%), Operating Income ¥41.5B (YoY -¥4.8B -10.4%), Ordinary Income ¥45.8B (YoY +¥4.9B +12.0%), Net Income attributable to owners of parent ¥27.0B (YoY +¥8.1B +43.3%). While revenue increased, operating-stage profitability declined due to gross margin deterioration leading to lower operating income; however, contribution from non-operating income turned Ordinary Income to a gain and Net Income rose substantially by +43.3% YoY. By region, Japan and Americas drove double-digit revenue and profit growth: Japan Operating Income ¥40.6B (+53.8%), Americas ¥8.9B (+46.4%). Europe turned to a loss (-¥0.2B) and Asia delivered revenue growth but profit decline (¥2.5B -31.8%). Operating margin was 13.2% (prior year 15.9%, -2.7pt) and gross margin 50.8% (prior year 54.3%, -3.5pt) deteriorated, while SG&A ratio improved to 37.6% (prior year 38.4%, -0.7pt). A special loss of ¥2.8B and a high effective tax rate of 37.4% partially restrained Net Income growth.
【Revenue】 Revenue reached ¥315.3B (YoY +8.3%). By segment, Japan ¥222.6B (+13.2%) was the largest growth driver, Americas ¥96.9B (+14.9%) also delivered double-digit revenue growth. Europe ¥66.0B (+6.9%) and Asia ¥61.1B (+6.9%) posted increases across all regions. Japan segment sales (including internal transactions) expanded markedly to ¥222.6B from ¥196.6B a year earlier, and export functions as a domestic production base also grew. Regional composition ratios are Japan 70.6%, Americas 30.7%, Europe 20.9%, Asia 19.4%, highlighting a Japan-weighted mix.
【Profitability】 Operating Income was ¥41.5B (YoY -10.4%). Gross margin declined to 50.8% from 54.3% a year earlier (-3.5pt), and gross profit was ¥160.2B (+1.3%), lagging the revenue increase of +8.3%. Rising raw material and logistics costs and changes in regional mix are inferred to have pressured gross profit. SG&A was ¥118.7B (+6.1%), below revenue growth, and SG&A ratio improved to 37.6% (prior year 38.4%, -0.7pt). Non-operating income totaled ¥4.8B (including interest income ¥2.2B and foreign exchange gains ¥1.8B) while non-operating expenses were minimal at ¥0.6B (interest expense ¥0.5B etc.), resulting in net non-operating income of +¥4.3B which boosted Ordinary Income. Ordinary Income ¥45.8B (+12.0%) turned positive due to non-operating income contribution. Special items recorded a special loss of ¥2.8B mainly due to impairment on investment securities of ¥2.7B, yielding Profit before tax ¥43.1B. After deduction of income taxes of ¥16.1B (effective tax rate 37.4%), Net Income attributable to owners of parent was ¥27.0B (+43.3%). In conclusion, revenue and ordinary/profit after-tax increased, but operating-stage performance declined due to gross margin deterioration.
Japan segment: Revenue ¥222.6B (+13.2%), Operating Income ¥40.6B (+53.8%), margin 18.2% — the largest earnings source. Americas: Revenue ¥96.9B (+14.9%), Operating Income ¥8.9B (+46.4%), margin 9.2% showing high growth. Europe: Revenue ¥66.0B (+6.9%) but Operating Loss ¥0.2B (prior year +¥0.9B) turning to deficit, margin -0.3%. Asia: Revenue ¥61.1B (+6.9%), Operating Income ¥2.5B (-31.8%), margin 4.1% with margin deterioration. Japan’s high-profitability structure (margin 18.2%) supports consolidated results and Americas shows improvement with margin 9.2%. Europe’s swing to loss and Asia’s margin drop (from 6.4% to 4.1%) pressured consolidated operating margin.
【Profitability】Operating margin 13.2% (prior year 15.9%, -2.7pt), Net margin 8.6% (prior year 6.5%, +2.1pt). Gross margin deteriorated to 50.8% (prior year 54.3%, -3.5pt) but improvement in SG&A ratio to 37.6% (prior year 38.4%, -0.7pt) partially mitigated operating-stage decline. Ordinary margin 14.5% (prior year 14.0%, +0.5pt) improved due to non-operating income contribution. ROE was 2.0% (quarterly basis, annualized equivalent ~8.0%), indicating low capital efficiency. 【Cash Quality】With Operating Income ¥41.5B, interest income ¥2.2B and interest expense ¥0.5B, interest coverage is 90.3x. Working capital remains substantial with Accounts Receivable ¥270.4B and Inventories ¥254.0B. Cash and deposits ¥310.9B vs Operating Income ¥41.5B yields Cash/Operating Income 7.5x, indicating ample liquidity. 【Investment Efficiency】Estimated ROIC = Operating Income ¥41.5B ÷ (Net Assets ¥1,376.8B + Interest-bearing Debt ¥59.8B) = 2.9% (quarterly basis, annualized equivalent ~11.6%). There is room to improve invested capital efficiency. 【Financial Soundness】Equity Ratio 79.6% (prior year 80.8%, -1.2pt), D/E ratio 0.04x, Current Ratio 353.5% (Current Assets ¥1,008.9B ÷ Current Liabilities ¥285.4B) showing high stability. Interest-bearing debt ¥59.8B vs Cash ¥310.9B results in net cash position ¥251.1B.
Cash and deposits decreased to ¥310.9B (prior year ¥399.9B, -¥89.0B). In terms of cash generation, Operating Income ¥41.5B and interest income ¥2.2B provide recurring cash generation, but income taxes ¥16.1B and increases in working capital absorbed funds. Accounts Receivable ¥270.4B (prior year ¥264.3B, +¥6.1B) increased slightly, Inventories ¥254.0B (prior year ¥243.2B, +¥10.8B) rose by ¥10.8B, and inventory buildup pressured working capital. Decrease in Accounts Payable to ¥86.0B (prior year ¥107.4B, -¥21.4B) also worsened working capital. Short-term borrowings increased to ¥22.3B (prior year ¥5.8B, +¥16.5B) for flexible funding; long-term borrowings slightly decreased to ¥37.5B (prior year ¥40.0B, -¥2.5B). Treasury stock balance was -¥107.1B (prior year -¥166.3B, +¥59.2B reduction in balance) indicating disposal/cancellation of treasury shares. Retained earnings fell to ¥1,277.7B (prior year ¥1,435.1B, -¥157.4B), likely impacted by dividends and treasury stock transactions. Dividend payments and treasury stock policies were the main causes of cash decline; operating profitability continues but working capital increases and shareholder returns absorbed cash.
Against Operating Income ¥41.5B, non-operating income ¥4.8B (interest income ¥2.2B, FX gains ¥1.8B etc.) represents about 1.5% of Revenue and is mainly financial income. Non-operating expenses ¥0.6B are minimal, and net non-operating income +¥4.3B lifted Ordinary Income but is susceptible to financial market volatility. Special items net to -¥2.7B (special loss ¥2.8B: impairment on investment securities ¥2.7B, loss on disposal of fixed assets ¥0.1B; special gains ¥0.1B from sale of fixed assets), reflecting temporary charges. Comprehensive Income ¥41.0B comprises Net Income ¥27.0B plus foreign currency translation adjustments ¥10.4B, valuation difference on available-for-sale securities ¥4.5B, and actuarial differences -¥0.8B, resulting in a ¥14.0B revaluation of Net Assets roughly equivalent to about half of Net Income. The divergence between Ordinary Income and Net Income is due to the high effective tax rate of 37.4% and special losses; recurring earnings quality is supported by Operating Income plus non-operating income, but improvement in gross margin is key to enhancing earnings quality.
Full Year plan unchanged: Revenue ¥1,330.0B (YoY +5.2%), Operating Income ¥180.0B (+8.1%), Ordinary Income ¥185.0B (+3.6%), EPS forecast ¥131.80, Dividend forecast ¥63.00. Q1 progress ratios: Revenue 23.7% (¥315.3B ÷ ¥1,330.0B), Operating Income 23.1% (¥41.5B ÷ ¥180.0B), Ordinary Income 24.8% (¥45.8B ÷ ¥185.0B). Versus a standard quarterly progress of 25%, Revenue -1.3pt, Operating Income -1.9pt, Ordinary Income -0.2pt, all within a near-standard range. For Full Year Net Income forecast ¥140.0B, Q1 Net Income ¥27.0B is 19.3% (standard -5.7pt), somewhat behind but within an acceptable range considering tax rate variations and one-off losses. No revisions suggest Q1 revenue and ordinary/net profit performance are broadly on plan.
Year-end dividend forecast ¥63.00 is shown after the stock split effective July 1, 2026 (1 share → 3 shares). Pre-split basis corresponds to year-end dividend ¥63.00 and annual dividend equivalent ¥126.00. Including the Q1 paid dividend of ¥60.00, the full-year payout ratio against EPS forecast ¥131.80 is about 48%, within the 60% guideline and sustainable. Cash and deposits ¥310.9B and net cash position ¥251.1B indicate ample financial capacity. Reduction in treasury stock balance (prior year -¥166.3B → current -¥107.1B, +¥59.2B contraction) suggests disposal/cancellation and that total shareholder returns may be being executed as part of capital policy. Evaluated on dividend payout ratio alone (48%), the level is sustainable; including treasury stock actions, total return ratio is likely higher while dividend sustainability remains strong.
Risk of persistent gross margin deterioration: If the gross margin decline to 50.8% (prior year 54.3%, -3.5pt) is driven by rising raw material/logistics costs and regional mix shifts, recovery over the full year may be delayed and operating margin pressure could continue. Inventory buildup of ¥254.0B (+¥10.8B) suggests delayed supply-demand adjustment and limited pricing pass-through ability may hinder gross margin improvement.
Margin declines in Europe and Asia: Europe turned to an operating loss of ¥0.2B (prior year +¥0.9B), and Asia’s operating margin deteriorated to 4.1% (prior year 6.4%, -2.3pt). These two regions account for 40.3% of revenue mix and mix deterioration could depress consolidated margins. Market structural differences and intense competition could delay recovery.
Deterioration in working capital efficiency: Accounts Receivable ¥270.4B (+¥6.1B), Inventories ¥254.0B (+¥10.8B), Accounts Payable ¥86.0B (-¥21.4B) indicate rising working capital. Inventory stagnation and slower collections can lengthen the cash conversion cycle; if low ROIC of 2.9% (quarterly basis) persists, structural improvement in capital efficiency may be delayed.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 13.2% | 6.8% (2.9%–9.0%) | +6.3pt |
| Net Margin | 8.6% | 5.9% (3.3%–7.7%) | +2.6pt |
Profitability significantly exceeds industry median, maintaining a high standing in both operating and net margins.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.3% | 13.2% (2.5%–28.5%) | -4.9pt |
Revenue growth lags the median, indicating somewhat slower growth pace within the industry.
※ Source: Company aggregation
High-profit segments in Japan and Americas drove consolidated profit, delivering an operating margin of 13.2% which is +6.3pt above the industry median of 6.8%. Japan margin 18.2% and Americas 9.2% provide a stable earnings base, though Europe’s swing to loss (-¥0.2B) and Asia’s margin decline (4.1%) are portfolio improvement challenges. Q1 progress against the full-year plan is within the standard range, and the contribution of non-operating income to Ordinary and Net Income growth is a positive momentum signal.
Deterioration in gross margin to 50.8% (prior year 54.3%, -3.5pt) is the main cause of operating profit decline, driven by raw material/logistics cost pressures and regional mix changes. Improvement in SG&A ratio to 37.6% (prior year 38.4%, -0.7pt) suggests structural cost efficiency gains; if gross margin recovers, upside to operating margin exists. Inventory build-up ¥254.0B (+¥10.8B) and decrease in Accounts Payable (-¥21.4B) pressure working capital and ROIC is low at 2.9% (quarterly basis, annualized ~11.6%). Inventory reduction and stronger collections to improve cash conversion are the shortest path to uplift ROIC and dividend capacity.
Financial soundness is very high with Equity Ratio 79.6%, Net Cash Position ¥251.1B, and Current Ratio 353.5% providing strong downside resilience. Dividend payout ratio 48% (full-year forecast basis) is sustainable and reduction in treasury stock balance (+¥59.2B) indicates intent to improve capital efficiency. A high effective tax rate of 37.4% and one-off loss ¥2.7B partially restrained Net Income growth, but the trend of Ordinary Income expansion persists. Full-year achievement hinges on gross margin recovery and earnings improvement in Europe and Asia; monitoring regional margin trends and progress on inventory efficiency from Q2 onward should be prioritized.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information aggregated by the Company based on public financial statements. Investment decisions are your own responsibility; please consult a professional advisor as needed before making investment decisions.
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