Bitcoin Japan Corporation FY2026 Q2 earnings report and financial analysis
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About Quarterly Earnings Report Disclosures
| Item | Current | Prior | YoY % |
|---|---|---|---|
| Net Sales | ¥1.45B | ¥1.53B | -5.1% |
| Operating Income | ¥-193M | ¥-186M | -3.8% |
| Ordinary Income | ¥-188M | ¥-158M | -19.0% |
| Net Income Attributable to Owners | ¥-240M | ¥-163M | -47.2% |
| Total Comprehensive Income | ¥-252M | ¥-136M | -85.3% |
| Basic EPS | ¥-4.27 | ¥-2.91 | -46.7% |
| Dividend Per Share | ¥0.00 | ¥0.00 | - |
| Item | Current End | Prior End | Change |
|---|---|---|---|
| Total Assets | ¥3.06B | ¥3.33B | ¥-273M |
| Total Equity | ¥2.42B | ¥2.67B | ¥-253M |
| Owners' Equity | ¥2.42B | ¥2.67B | ¥-253M |
| Item | Value |
|---|---|
| Net Profit Margin | -16.5% |
| Item | YoY Change |
|---|---|
| Net Sales YoY Change | -5.1% |
| Item | Value |
|---|---|
| Shares Outstanding (incl. Treasury) | 59.64M shares |
| Treasury Stock | 3.40M shares |
| Average Shares Outstanding | 56.24M shares |
| Book Value Per Share | ¥43.06 |
| Item | Amount |
|---|---|
| Q2 Dividend | ¥0.00 |
| Item | Forecast |
|---|---|
| Net Sales Forecast | ¥3.20B |
| Operating Income Forecast | ¥-200M |
| Ordinary Income Forecast | ¥-190M |
| Net Income Attributable to Owners Forecast | ¥-230M |
| Basic EPS Forecast | ¥-4.09 |
This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.
Horita Maruzen Co., Ltd. (81050) reported FY2026 Q2 consolidated results under JGAAP showing continued operating losses despite a relatively solid gross margin and a very strong balance sheet. Revenue was ¥1,452 million, down 5.1% year on year, indicating a soft top line against the prior-year period. Gross profit was ¥503 million, translating to a gross margin of 34.7%, which is healthy for an apparel/textile trading model but insufficient to cover fixed SG&A. Operating income was a loss of ¥193 million (approximately flat YoY), and ordinary income was a loss of ¥188 million, indicating minimal non-operating drag and negligible interest burden. Net loss was ¥240 million (flat YoY), with a net margin of -16.5%, reflecting operating under-absorption rather than financial expenses. The DuPont framework shows ROE of -9.91%, driven primarily by negative margin, modest asset turnover of 0.475, and low financial leverage of 1.26x. SG&A is estimated at roughly ¥696 million for the half, or about 48% of sales, highlighting a cost base that remains heavy relative to current revenue scale. Liquidity is ample: the current ratio is 496%, quick ratio 347%, and working capital is ¥2,485 million, underscoring a highly liquid and lightly levered balance sheet. Total liabilities are ¥655 million against total equity of ¥2,422 million (implying an equity ratio of roughly 79%, despite the equity ratio field showing 0.0% due to non-disclosure conventions). Inventory stands at ¥938 million, a high level relative to half-year COGS that will require disciplined turnover management. Operating cash flow was an outflow of ¥268 million, slightly worse than the net loss, suggesting working capital consumption; investing cash flow was not disclosed; financing cash flow was minimal at -¥0.08 million. The company paid no dividends (DPS ¥0), consistent with losses and the need to preserve cash. Overall, the business exhibits resilient gross profitability but insufficient scale and/or cost flexibility, with losses persisting as revenue softness meets a largely fixed SG&A structure. The balance sheet strength limits solvency risk in the near term, but cash flow generation depends on improving sales productivity and working capital discipline. Data gaps (e.g., equity ratio, cash and equivalents, investing cash flows, shares outstanding) constrain precision in certain per-share and cash metrics, but the available figures are adequate to assess core profitability, liquidity, and leverage.
ROE_decomposition: ROE of -9.91% is explained by Net Profit Margin of -16.53%, Asset Turnover of 0.475x, and Financial Leverage of 1.26x. The negative margin is the dominant driver, while relatively low leverage limits both upside and downside amplification. margin_quality: Gross margin is 34.7% (¥503m/¥1,452m), indicating acceptable product profitability. Operating margin is -13.3% (¥-193m/¥1,452m), implying SG&A burden of roughly 48.0% of sales (~¥696m). Ordinary margin is -12.9%, showing minimal non-operating noise; interest expense is only ¥0.06m. operating_leverage: Losses persisted despite modest revenue decline (-5.1% YoY), suggesting fixed-cost rigidity. With EBITDA at -¥189m and D&A at ¥4.2m, cash operating losses reflect insufficient scale; incremental sales conversion to operating profit could be high if SG&A is partially fixed, but downside risk remains if sales softness continues.
revenue_sustainability: Revenue decreased 5.1% YoY to ¥1,452m, likely reflecting softness in apparel/textile demand and/or customer order timing. No segment detail is provided to attribute declines. profit_quality: Ordinary loss (¥-188m) is close to operating loss (¥-193m), indicating limited distortion from financial or one-off items. Effective tax recorded is minimal relative to losses; tax line (¥5.4m) has negligible P&L impact. outlook: Near-term improvement hinges on restoring top-line growth and/or SG&A rightsizing. Given current margins, achieving break-even likely requires a combination of revenue recovery and cost flexibility; inventory discipline will be critical to support gross margin and cash conversion.
liquidity: Current ratio 496.2% and quick ratio 346.7% denote very strong liquidity. Working capital of ¥2,485m provides a significant buffer for operations. solvency: Debt-to-equity is 0.27x with total liabilities of ¥655m vs. equity of ¥2,422m, implying low leverage and ample solvency headroom. The reported equity ratio field shows 0.0% due to non-disclosure, but a simple Assets/Equity calculation suggests ~79% equity ratio (¥2,422m/¥3,057m). capital_structure: Interest expense is negligible (¥0.06m), and interest coverage is negative only because EBIT is negative; financing risk is low, with ordinary losses driven by operations rather than financing costs.
earnings_quality: OCF of -¥268m vs. net loss of -¥240m yields an OCF/Net Income ratio of 1.12 (both negative), indicating cash outflows slightly exceed accounting losses—likely due to working capital consumption. FCF_analysis: Investing cash flows were not disclosed (reported as 0), so Free Cash Flow cannot be reliably derived from the provided data. EBITDA is negative, so internally funded capex flexibility may be constrained absent working capital releases. working_capital: Inventories at ¥938m are high relative to half-year COGS (¥1,028m), implying roughly ~166 days of inventory on hand (estimate). This elevates the risk of cash tied in stock and potential markdowns if demand remains soft.
payout_ratio_assessment: DPS is ¥0.00 with a payout ratio of 0%, appropriate given operating and net losses. FCF_coverage: FCF coverage is reported as 0.00x, but with investing cash flows undisclosed and OCF negative, there is no visible capacity for distributions from internal cash generation. policy_outlook: With negative earnings and OCF, sustaining or reinstating dividends would likely require a return to profitability and improved cash conversion. Balance sheet strength offers optionality, but operating recovery is a prerequisite.
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Relative Positioning: Within small-cap apparel/textile trading peers, the company exhibits above-average liquidity and low leverage but below-peer profitability, with performance hinging on restoring scale and improving operating efficiency.
This analysis was auto-generated by AI. Please note the following: