These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥39.13B | ¥39.64B | -1.3% |
| Operating Income | ¥1.13B | ¥0.54B | +109.9% |
| Ordinary Income | ¥1.51B | ¥0.84B | +80.7% |
| Net Income | ¥1.00B | ¥0.42B | +11.0% |
| ROE | 3.8% | 1.8% | - |
Although revenue declined slightly, substantial increases in Operating Income, Ordinary Income, and Net Income were achieved through an improvement in the gross margin and the containment of selling, general and administrative expenses, clearly demonstrating a recovery in the Company’s earnings structure. Revenue was ¥39.13B (-1.3% year on year), Operating Income was ¥1.13B (+109.9%), Ordinary Income was ¥1.51B (+80.7%), and Net Income attributable to owners of the parent was ¥1.00B (+135.8%). The primary drivers of the earnings growth were a +1.1pt improvement in the gross margin to 38.6% and the containment of SG&A expenses at -2.6% year on year. In addition, non-operating income, including dividend income received and foreign exchange gains, contributed to the increase in Ordinary Income. Net Income also benefited from extraordinary income, mainly gains on the sale of investment securities. The sustainability of core earnings power excluding this temporary factor will be a key area of focus going forward.
【Revenue】Revenue was ¥39.13B, representing a YoY decline of -1.3%. By segment, the Stationery and Office Supplies Business generated ¥25.06B (64.1% of total revenue, YoY -0.9%), while the Lifestyle Products Business generated ¥14.36B (36.6% of total revenue, YoY -2.8%). Both segments reported revenue declines, as sluggish demand for existing products weighed on overall revenue.
【Profit and Loss】Operating Income was ¥1.13B (YoY +109.9%), and the Operating Income margin improved to 2.9% from 1.4% in the previous year, a +1.5pt improvement. The improvement was attributable to the expansion of the gross margin to 38.6% from 37.5% in the previous year and the containment of SG&A expenses at ¥13.96B (YoY -2.6%). Fixed-cost control therefore supported profit growth despite the decline in revenue. Ordinary Income was ¥1.51B (YoY +80.7%), with non-operating income, including dividend income received of ¥0.15B and foreign exchange gains of ¥0.13B, contributing to the increase. Extraordinary income and expenses resulted in a net gain of +¥0.12B, mainly reflecting a gain on the sale of investment securities of ¥0.18B, providing a temporary boost to Net Income. However, the tax burden corresponding to an effective tax rate of 38.8% resulted in a divergence between Ordinary Income of ¥1.51B and Net Income of ¥1.00B. Overall, the Company reported a decline in revenue but an increase in profit.
The Stationery and Office Supplies Business generated revenue of ¥25.06B (YoY -0.9%) and Operating Income of ¥0.66B (YoY +72.6%, margin 2.6%), while the Lifestyle Products Business generated revenue of ¥14.36B (YoY -2.8%) and Operating Income of ¥0.45B (YoY +243.5%, margin 3.1%). Both segments achieved substantial profit growth despite lower revenue, indicating that improvements in the cost structure progressed across the Company. In particular, the Lifestyle Products Business achieved a higher margin than the Stationery and Office Supplies Business, and profit growth was pronounced partly due to the absence of the impairment loss recorded in the previous period (¥0.12B impairment of goodwill related to the former HIM). In the current period, the Stationery and Office Supplies Business recorded an impairment loss of ¥0.04B related to idle assets, representing a reduction in impairment losses compared with the previous period.
【Profitability】The Operating Income margin was 2.9%, improving by +1.5pt from 1.4% in the previous year, while the Net Income margin also expanded to 2.6% from 1.1% in the previous year. ROE was 3.8%, improving from the previous year in line with the recovery in Net Income. 【Cash Flow Quality】Operating Cash Flow (OCF) was ¥2.11B, equivalent to 2.1 times Net Income of ¥1.00B, indicating strong cash backing for earnings. 【Investment Efficiency】Total asset turnover was approximately 1.05x (revenue of ¥39.13B ÷ total assets of ¥37.35B), while ROA based on Ordinary Income was 4.1%. 【Financial Soundness】The Equity Ratio was 70.2%, improving from 67.5% in the previous year. The current ratio was approximately 317% and the quick ratio was approximately 196%, indicating ample liquidity. Cash and deposits of ¥6.83B exceeded interest-bearing debt, which totaled approximately ¥4.80B, comprising short-term borrowings of ¥3.50B, current-portion long-term borrowings of ¥0.44B, and long-term borrowings of ¥0.86B.
Operating Cash Flow was ¥2.11B, increasing by +44.0% from ¥1.47B in the previous year and equivalent to 2.1 times Net Income of ¥1.00B, indicating strong cash conversion of earnings. In terms of working capital, a decrease in inventories provided a positive contribution of ¥0.32B and an increase in trade payables provided a positive contribution of ¥0.14B, while an increase in trade receivables was a negative factor of ¥0.17B. Investing Cash Flow was -¥0.55B, consisting primarily of capital expenditures of ¥0.59B, broadly in line with depreciation and amortization of ¥0.65B. As a result, the Company generated Free Cash Flow of ¥1.56B, which was allocated to Financing Cash Flow of -¥1.88B, including a net reduction in short-term borrowings of ¥1.04B, repayment of long-term borrowings of ¥0.44B, and dividend payments of ¥0.39B. Cash and cash equivalents at the end of the period were ¥6.36B, approximately unchanged from the end of the previous period, with no significant change in funding conditions.
Net Income was ¥1.00B versus Ordinary Income of ¥1.51B, a divergence of ¥0.51B, primarily due to the ¥0.63B corporate tax burden corresponding to an effective tax rate of 38.8%. Extraordinary income of ¥0.18B, mainly comprising gains on the sale of investment securities of ¥0.18B, and extraordinary losses of ¥0.06B, including impairment losses of ¥0.04B, were recorded, resulting in a net gain of +¥0.12B. This increased Net Income by approximately 12%, indicating a contribution from temporary factors. Of non-operating income of ¥0.52B, dividend income received of ¥0.15B and foreign exchange gains of ¥0.13B are highly non-recurring items that are susceptible to market fluctuations. Meanwhile, comprehensive income was ¥2.55B, exceeding Net Income by ¥1.55B, with valuation differences on securities of +¥0.82B, foreign currency translation adjustments of +¥0.45B, and adjustments related to retirement benefits of +¥0.27B accumulated as other comprehensive income. OCF exceeded Net Income, and from an accrual perspective, the cash backing for earnings can be assessed as favorable.
This financial result represents the full-year results for the fiscal year ended June 2026, while the disclosed earnings forecast is the Company’s plan for the next fiscal year, ending June 2027. The plan calls for revenue of ¥42.00B (YoY +7.3%), Operating Income of ¥1.44B (YoY +27.6%), Ordinary Income of ¥1.62B (YoY +7.2%), and EPS of ¥37.46, anticipating increases in both revenue and profit. The planned growth rate in Operating Income (+27.6%) exceeds the planned revenue growth rate (+7.3%), indicating a plan based on the continuation of the gross margin improvement and SG&A containment achieved in the current period.
The annual dividend for the current period was ¥15 (interim dividend of ¥7 and year-end dividend of ¥8), resulting in a Payout Ratio of 42.2% (total dividends of ¥0.42B ÷ Net Income of ¥1.00B). In the previous period, the Payout Ratio was high at 92.6% due to the relatively low level of Net Income; in the current period, the Payout Ratio normalized as Net Income recovered. Free Cash Flow of ¥1.56B exceeded total dividends of ¥0.42B, supporting dividend sustainability. For the next fiscal year, a dividend forecast of ¥7.00 has been disclosed as of the current date. No disclosure regarding share repurchases has been identified.
Inventory Level Risk: Inventories were ¥9.23B, accounting for 24.7% of total assets, and inventory days relative to cost of sales of ¥24.04B were approximately 140 days. The high inventory level could affect asset efficiency and the risk of future valuation losses.
Business Segment Concentration Risk: The Stationery and Office Supplies Business accounted for 64.1% of revenue and 59.4% of total segment profit (¥0.66B/¥1.11B), meaning that fluctuations in demand for this business could have a significant impact on overall performance.
Securities Valuation and Foreign Exchange Risk: The Company held investment securities of ¥4.10B, equivalent to 11.0% of total assets, and valuation differences increased by +¥0.82B during the current period. In addition, foreign exchange gains of ¥0.13B were recorded in non-operating income. Future profit and net assets may therefore fluctuate due to market and foreign exchange movements.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 2.9% | 7.8% (4.6%–12.3%) | -4.9pt |
| Net Income Margin | 2.6% | 5.2% (2.3%–8.2%) | -2.6pt |
Both the Operating Income margin and Net Income margin were below the industry median, indicating that profitability was relatively weak within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -1.3% | 3.7% (-0.4%–9.3%) | -5.0pt |
The revenue growth rate was also below the industry median, indicating relative weakness in top-line growth within the industry.
※Source: Compiled by the Company
The fact that Operating Income increased substantially by +109.9% year on year despite a decline in revenue indicates a change in the cost structure driven by gross margin improvement (+1.1pt) and SG&A containment (-2.6%). Margin improvement amid declining revenue can be interpreted as a sign of strengthening earnings quality.
The fact that the Operating Income margin of the Lifestyle Products Business (3.1%) exceeded that of the Stationery and Office Supplies Business (2.6%) indicates progress in diversifying earnings sources and realizing portfolio effects.
Temporary factors, primarily gains on the sale of investment securities, increased Net Income by approximately 12%. Accordingly, the continuation of core earnings power excluding such temporary gains will be the focus from the next fiscal year onward.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit five-year fade). It is not a forecast of the market share price or a recommendation to take any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥798 |
| base | ¥805 |
| bull | ¥814 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥928 |
| Adjusted Forecast EPS | ¥45.1 |
| Cost of Equity r | 9.65% (10-year Japanese Government Bond 2.65% + Equity Risk Premium 6.00% + Size Premium 1.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 18.7% |
| Forecast EPS Confidence Adjustment | ×1.049 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥783–¥829 at ±1% for the cost of equity, and ¥801–¥808 at ±0.1 for ω.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value is not intended to forecast or guarantee the future share price.)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed financial results. Investment decisions should be made at your own discretion and responsibility, after consulting with a professional as necessary.
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| 0.87x / 17.8x |