| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥157.2B | ¥164.0B | -4.1% |
| Operating Income / Operating Profit | ¥9.1B | ¥9.0B | +1.7% |
| Ordinary Income | ¥11.4B | ¥9.7B | +17.5% |
| Net Income / Net Profit | ¥7.8B | ¥12.1B | -35.0% |
| ROE | 2.5% | 3.9% | - |
For the interim period of FY2026 (Nov 2025 – Apr 2026), Revenue/Net Sales were ¥157.2B (YoY -¥6.8B -4.1%), Operating Income was ¥9.1B (YoY +¥0.2B +1.7%), Ordinary Income was ¥11.4B (YoY +¥1.7B +17.5%), and Net Income was ¥7.8B (YoY -¥4.2B -35.0%). Despite lower sales, cost containment secured a slight increase in Operating Income, and Ordinary Income achieved double-digit growth supported by ¥1.9B of foreign exchange gains. Nevertheless, Net Income declined significantly from the prior year (which included special gains) despite recording ¥8.0B of special gains. Operating Cash Flow was ¥1.3B (YoY -93.9%), markedly low relative to Net Income, as inventory accumulation, an increase in accounts receivable, and a decrease in accounts payable constrained working capital.
[Revenue] Revenue of ¥157.2B (YoY -4.1%) was mainly driven by a substantial decline in the Machinery Products Business. By segment, the Synthetic Resin Processed Products Business secured slight growth at ¥133.4B (+1.7%), while the Machinery Products Business declined significantly to ¥23.9B (-28.7%), dragging down consolidated top-line. The Synthetic Resin Processed Products Business accounted for 84.8% of sales; regionally, domestic sales were ¥92.3B, South America ¥10.2B, and Asia ¥15.5B, indicating ongoing overseas expansion. The Machinery Products Business was primarily domestic at ¥18.4B but suffered a YoY decline of ¥9.3B due to reduced orders. Foreign exchange translation adjustments increased by ¥5.2B, and yen weakness provided some support to overseas sales.
[Profitability] Cost of goods sold totaled ¥114.3B, yielding a gross margin of 27.3% (improved +0.7pt from 26.6% a year earlier) due to cost control. Selling, general and administrative expenses were ¥33.8B (21.5% of sales), down ¥0.9B from ¥34.7B the prior year, reflecting efficiency gains. Operating Income was ¥9.1B (Operating Margin 5.8%, up +0.3pt from 5.5%). Non-operating income totaled ¥3.0B, of which ¥1.9B was foreign exchange gains — equivalent to 20.4% of Operating Income — indicating a large non-core contribution, producing Ordinary Income of ¥11.4B (Ordinary Income Margin 7.3%) and YoY +17.5% double-digit growth. Although special gains of ¥8.0B (subsidy income) were recorded, income before income taxes was ¥11.4B and corporate taxes and other amounted to ¥3.6B (effective tax rate 31.5%), resulting in Net Income of ¥7.8B (Net Margin 5.0%, down -2.4pt from 7.4% the prior year). In summary: slight revenue decline, marginal operating income increase and ordinary income growth, but Net Income decreased, presenting a revenue-decline-with-profitability-mix appearance.
The Synthetic Resin Processed Products Business recorded Revenue of ¥133.4B (+1.7%) and Operating Income of ¥6.5B (+3.4%), yielding a segment margin of 4.9%. Domestic demand resilience and overseas expansion (South America +18.9%, Oceania +6.1%) contributed to slight revenue and profit increases. The Machinery Products Business posted Revenue of ¥23.9B (-28.7%) and Operating Income of ¥2.6B (-2.5%), maintaining a high segment margin of 11.0% despite the large revenue decline from weakened orders that pressured consolidated performance. With segment margins of 4.9% for Synthetic Resin vs. 11.0% for Machinery—more than a twofold gap—recovery in the Machinery Business is key to improving consolidated margins.
[Profitability] Operating Margin 5.8% (up +0.3pt from 5.5%), Net Margin 5.0% (down -2.4pt from 7.4%). ROE 2.5% (down from 4.0%) is primarily driven by the decline in Net Margin. Total Asset Turnover 0.37x and Financial Leverage 1.35x are broadly unchanged. Gross Margin 27.3% improved from 26.6%, indicating effective cost control. [Cash Quality] Operating CF/Net Income 0.16x and Operating CF/EBITDA 0.06x are very low, reflecting weak cash generation due to working capital expansion. DSO 123 days, DIO 252 days, and DPO 55 days resulted in a Cash Conversion Cycle (CCC) of 320 days, extended. [Investment Efficiency] ROIC 2.0% shows a wide gap versus cost of capital; CapEx/Depreciation = ¥6.6B/¥10.6B = 0.62x indicates lagging renewal investment. R&D expense ¥2.8B (1.8% of sales) is at a conservative level. [Financial Soundness] Equity Ratio 73.8% (up +1.5pt from 72.3%), Interest-bearing Debt ¥43.3B with Debt/EBITDA 2.20x, Debt/Capital 12.0%, and Interest Coverage 48.2x — within healthy ranges. Current Ratio 277%, Quick Ratio 240%, and Cash/Short-term Debt 2.32x show very strong liquidity, but short-term debt ratio of 44.9% indicates the need for refinancing management.
Operating CF was ¥1.3B (from ¥20.8B a year earlier, -93.9%), a significant deterioration. Operating CF before working capital changes was ¥3.6B, while increases in inventory -¥8.4B (primarily WIP +¥6.4B), increases in accounts receivable -¥3.5B, and decreases in accounts payable -¥7.3B led to a working capital outflow of -¥19.2B. After income taxes paid -¥2.3B and interest/dividend receipts ¥0.2B, Operating CF settled at ¥1.3B. Investing CF was -¥8.1B, led by CapEx -¥6.6B. Financing CF was -¥6.9B, including dividend payments -¥5.0B, short-term borrowings increase ¥2.0B, and long-term borrowings repayments -¥4.2B. Free Cash Flow was -¥6.8B, indicating CapEx and dividends could not be covered by Operating CF, and Cash and Deposits fell to ¥45.1B (from ¥58.6B, -¥13.5B). Deterioration in working capital efficiency is hampering cash generation; inventory reduction and tighter receivables collection are immediate priorities.
Operating Income of ¥9.1B is the core of recurring earnings, but of Non-operating Income ¥3.0B, ¥1.9B was foreign exchange gains (equivalent to 20.4% of Operating Income), representing a sizeable non-recurring factor that raises concerns about earnings volatility if FX reverses. Special gains of ¥8.0B (subsidy income) are temporary and substantially boosted Net Income. Non-operating income is 1.9% of sales and within acceptable range, but dependence on non-core factors is high. Operating CF ¥1.3B is materially below Net Income ¥7.8B (0.16x), indicating an expanding accrual (profit-to-CF) gap and weak cash-based earnings quality. The gap between Ordinary Income ¥11.4B and Net Income ¥7.8B is mainly tax-driven and not structural, but the large contribution from non-recurring items warrants attention regarding earnings sustainability.
Full Year / FY forecast: Revenue ¥350.0B (+9.6%), Operating Income ¥21.0B (+43.1%), Ordinary Income ¥22.0B (+21.1%), Net Income ¥15.0B. Progress against the first-half results is: Revenue 44.9%, Operating 43.5%, Ordinary 52.0%, Net 51.7%. Compared with a standard 50% progress, Revenue and Operating are 5–6pp behind, while Ordinary and Net are roughly on track due to FX gains and special gains. The large revenue decline in the Machinery Products Business explains the lag in operating progress; the second half assumes inventory reduction, order recovery, and segment mix improvement to achieve forecasts. No revisions to guidance have been made; the company expects a second-half recovery.
Interim dividend of ¥35 (up from ¥30 a year earlier); annual dividend forecast incorporating the year-end dividend is ¥40. Against first-half Net Income ¥7.8B, the interim dividend payout is estimated at ¥4.9B, implying a payout ratio of about 63% (on an annualized basis, based on full-year Net Income forecast ¥15.0B, ¥40 × shares outstanding implies about 38% expected). With Free Cash Flow at -¥6.8B and dividend payments of ¥5.0B, FCF coverage is -1.31x — dividends are not covered by current Operating CF and deplete cash balances. Cash and Deposits ¥45.1B and Equity Ratio 73.8% indicate strong financial capacity and no short-term solvency issues, but sustainable dividends require improved Operating CF and inventory compression in the second half. The payout ratio is a management decision and reasonable, but balancing dividends with investment capacity hinges on working capital efficiency improvements.
Working capital expansion risk: Inventory ¥28.6B (+7.5%), notably WIP ¥32.7B (+24.1%) accumulation leading to DIO 252 days and CCC 320 days. Increased risk of inventory write-downs and obsolescence, and Operating CF/Net Income 0.16x indicates significantly weakened cash generation. Prolonged DSO of 123 days also suggests receivable credit risk; delayed normalization of working capital could strain liquidity.
Segment concentration and mix deterioration risk: The Synthetic Resin Processed Products Business accounts for 84.8% of sales; the Machinery Products Business’ revenue decline of -28.7% materially depressed consolidated performance. Although the Machinery Business has a high margin (11.0%), its share of sales fell to 15.2%, reducing its contribution to the consolidated Operating Margin of 5.8%. High segment concentration and unfavorable mix increase performance volatility.
Non-core income dependency risk: Foreign exchange gains of ¥1.9B equate to 20.4% of Operating Income, and special gains of ¥8.0B significantly inflated Net Income. FX reversals or subsidy cessation could materially reduce earnings; absent improvement in core earnings (higher Operating Margin, price pass-through), sustainable growth will be difficult.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.8% | 8.8% (3.0%–11.0%) | -3.0pt |
| Net Margin | 5.0% | 5.4% (1.1%–8.2%) | -0.4pt |
Operating Margin is 3.0pt below the industry median, placing profitability at mid-to-lower range within the industry. Net Margin is roughly in line with the median, but margin inferiority at the operating level is a concern.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | -4.1% | 11.7% (-5.4%–28.3%) | -15.8pt |
Revenue growth lags the industry median by 15.8pt, indicating weaker growth within the industry. The Machinery Products Business order decline contributed, leaving the company behind the broader industry expansion trend.
※Source: Company aggregation
Progress on working capital efficiency improvement is the key monitoring item: Extended inventory days (DIO 252 days), WIP ratio 41.4%, and CCC 320 days are major contributors to low Operating CF/Net Income (0.16x). In the second half, inventory reduction (especially WIP), strengthened receivables collection, and optimization of payment terms to shorten CCC are essential for normalizing FCF and sustaining dividends. CapEx/Depreciation 0.62x suggests underinvestment in renewal; maintaining competitiveness mid-term requires balanced capital deployment and cash generation.
Improve segment mix and reduce dependence on non-core factors: Recovery in the Machinery Products Business (margin 11.0%) and margin expansion in the Synthetic Resin Processed Products Business (margin 4.9%) are levers for consolidated profitability improvement. The current dependence on FX gains (20.4% of Operating Income) and special gains inflating Net Income is unsustainable; structural improvement in core Operating Income (price pass-through, cost reduction, shift to higher-value products) is a prerequisite. Low capital efficiency (ROE 2.5%, ROIC 2.0%) underscores the need to eliminate the operating margin deficit vs. industry median (-3.0pt) to improve capital market valuation.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information aggregated by the company based on publicly disclosed financial statements. Investment decisions are your own responsibility; consult a professional as necessary before making investment decisions.