| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥991.1B | ¥1160.1B | -14.6% |
| Operating Income / Operating Profit | ¥12.0B | ¥6.4B | +88.5% |
| Equity-method Investment Income (Loss) | ¥-2.1B | ¥-0.0B | -10650.0% |
| Ordinary Income | ¥15.6B | ¥5.8B | +169.0% |
| Net Income / Net Profit | ¥-2.4B | ¥3.5B | -81.2% |
| ROE | -0.4% | 0.7% | - |
FY2026 (year ended March 2026) results were Revenue ¥991.1B (YoY -¥169.0B -14.6%), Operating Income ¥12.0B (YoY +¥5.6B +88.5%), Ordinary Income ¥15.6B (YoY +¥9.8B +169.0%), and Net Income attributable to owners of the parent ¥-2.4B (YoY -¥5.9B -168.1%). Despite revenue decline amid an adjustment in electronic components demand, improved gross margin and SG&A cost control drove a significant increase in operating income. Special gains of ¥14.0B, including ¥13.4B gain on sale of investment securities, boosted profit before tax, but a high effective tax rate of 60% resulted in a final net loss. Operating Cash Flow was ¥58.2B with inventory reduction (+¥36.9B) contributing, and Free Cash Flow was ¥54.3B, indicating solid cash generation. Net cash was ¥278.3B and Equity Ratio 66.3%, showing a robust financial base, but ROE -0.4% and operating margin 1.2% indicate low profitability and capital efficiency.
[Revenue] Revenue was ¥991.1B (YoY -14.6%), a decrease of ¥169.0B. The core Electronic Components Business declined to ¥645.2B (YoY -27.6%), a decrease of ¥245.6B, hit directly by a downcycle in semiconductor and electronic components markets. Other Businesses doubled to ¥205.3B (YoY +99.6%), up ¥102.8B, largely due to reclassification of industrial equipment-related operations from the Assembly Business. The Assembly Business was ¥140.6B (YoY -15.3%), down ¥25.4B. Sales composition was Electronic Components 65.1%, Other 20.7%, Assembly 14.2%, indicating high concentration in electronic components. Gross margin improved to 10.6% (prior year 8.0%), +2.6pt, supported by a shift to higher-margin projects and normalization of inventory valuation.
[Profitability] Operating Income was ¥12.0B (YoY +88.5%), up ¥5.6B. Gross profit was ¥104.7B (gross margin 10.6%), gross profit amount increased by ¥12.2B, and SG&A was ¥92.6B (SG&A ratio 9.3%), only up ¥6.6B, resulting in operating margin improving to 1.2% (prior year 0.5%), +0.7pt. Ordinary Income was ¥15.6B (YoY +169.0%), up ¥9.8B. Non-operating income totaled ¥7.1B composed of interest income ¥3.5B and dividend income ¥2.7B, while non-operating expenses including equity-method loss ¥2.1B and interest expense ¥0.8B amounted to ¥3.5B, yielding net non-operating income improvement of ¥+3.6B (prior year +¥0.6B). Profit before tax was ¥29.3B (YoY +146.5%), up ¥17.4B, with special gains ¥14.0B centered on gain on sale of investment securities ¥13.4B contributing. Corporate taxes and others were ¥17.6B (tax burden 60.0%), leading to Net Income attributable to owners of the parent of ¥-2.4B (prior ¥+3.5B), a deterioration of ¥6.7B. Comprehensive income was ¥26.6B, with foreign currency translation adjustments ¥12.7B and valuation difference on securities ¥2.1B largely exceeding net income, highlighting a divergence between temporary factors and recurring earning power. In conclusion, despite revenue decline, mix improvement and cost control delivered higher profits, but dependence on special gains and high tax burden resulted in a final net loss.
The Electronic Components Business reported Revenue ¥645.2B (YoY -27.6%) with a significant decline, but Operating Income ¥23.5B (YoY +55.2%) and margin improved to 3.6% (prior year 1.7%), +1.9pt. Proper inventory valuation and shift to higher value-added projects boosted profitability. Other Businesses Revenue ¥205.3B (YoY +99.6%) doubled mainly due to reclassification of industrial equipment-related operations; Operating Income was ¥3.9B (YoY -11.5%), margin 1.9% (prior year 4.3%), showing reduced profitability. The Assembly Business had Revenue ¥140.6B (YoY -15.3%), Operating Income ¥3.3B (YoY -51.1%), margin 2.3% (prior year 4.0%), with reduced scale after reclassification contributing to margin deterioration. Corporate adjustments (company-wide expenses) were -¥18.7B (prior -¥19.9B), improving ¥1.2B, reflecting efficiency gains in shared expenses and administrative functions.
[Profitability] Operating margin 1.2% (prior 0.5%) improved +0.7pt but remains -2.1pt below the industry median 3.4%, ranking low. Gross margin 10.6% (prior 8.0%) improved +2.6pt reflecting inventory valuation and project mix. SG&A ratio 9.3% (prior 7.4%) rose +1.9pt, indicating rigidity of SG&A against sales decline. ROE -0.4% (prior 0.7%) worsened materially due to net loss and is significantly below industry median. [Cash Quality] Operating Cash Flow ¥58.2B / Net Income ¥-2.4B ratio is incalculable, but inventory compression ¥36.9B and operating CF subtotal ¥55.7B give an accrual ratio of -5.8% (Operating CF / Total Assets 7.2%, ROA -0.3%), indicating strong cash generation. Working capital ¥476.7B and current ratio 315.7% show ample liquidity. [Investment Efficiency] Total asset turnover 1.23x (prior 1.45x) declined due to revenue decrease. Estimated ROIC 2.3% (EBIT ¥12.0B / Invested Capital [Net assets ¥535.4B + Interest-bearing debt ¥25.0B] = 2.1%) indicates low capital efficiency. Capex ¥0.9B / Depreciation ¥2.8B = 0.34x shows a restrained investment stance; total tangible and intangible investment including intangible asset acquisitions ¥7.9B amounted to ¥17.2B, limiting growth acceleration. [Financial Soundness] Equity Ratio 66.3% (prior 65.6%), D/E ratio 0.05x, Net Cash ¥278.3B (cash & deposits ¥303.3B - interest-bearing debt ¥25.0B) reflects extremely healthy finances. Interest coverage 15.6x (Operating Income ¥12.0B / Interest Expense ¥0.8B) and quick ratio 259.4% indicate strong short-term solvency.
Operating CF was ¥58.2B (prior ¥317.2B), a large decrease, but inventory reduction ¥36.9B, accounts receivable decrease ¥2.7B, and accounts payable decrease ¥3.7B contributed to working capital improvement, securing operating CF subtotal ¥55.7B. Prior year included exceptional large compressions of inventory ¥170.5B and receivables ¥202.8B driving operating CF ¥327.1B, so the current period reflects normalization. Investing CF was -¥3.9B, with capex ¥0.9B, intangible asset acquisitions ¥7.9B, and acquisition of subsidiary shares ¥28.2B partially offset by proceeds from sales of investment securities ¥17.2B and recovery of short-term investments. FCF was ¥54.3B (prior ¥314.1B), ample and sufficient to cover dividends ¥4.4B. Financing CF was -¥67.7B, including repayment of long-term borrowings ¥35.0B, repayment of short-term borrowings ¥12.6B, share buybacks ¥15.0B, and dividends ¥4.4B, reducing cash by ¥29.3B. Ending cash ¥303.3B and net cash ¥278.3B indicate very strong liquidity, leaving substantial room for growth investment and shareholder returns.
Ordinary Income ¥15.6B versus Profit before tax ¥29.3B shows a gap of ¥13.7B, with special gains ¥14.0B centered on gain on sale of investment securities ¥13.4B elevating non-recurring income. Recurring earnings power excluding one-offs is ¥15.6B on an ordinary basis; financial income of ¥6.2B (interest income ¥3.5B, dividend income ¥2.7B) complements Operating Income ¥12.0B, while equity-method loss ¥2.1B reduced this. Special gains are realizations on available-for-sale securities with limited continuity; future earnings will rely on core operating profit and stable financial income. The high tax burden of corporate taxes and others ¥17.6B (60.0% of profit before tax) includes recognition of deferred tax liabilities ¥18.7B and is likely influenced by timing differences in tax recognition of realized securities gains. Comprehensive income ¥26.6B exceeds net income ¥-2.4B by ¥29.0B, with foreign currency translation adjustments ¥12.7B and valuation difference on securities ¥2.1B acting as buffers, but these are unrealized valuation gains and earnings quality should be assessed on ordinary income basis. The accrual ratio -5.8% and operating CF materially exceeding profits indicate a cash-backed earnings structure.
Full-year forecast for FY2027 (year ending March 2027) is Revenue ¥1,260.0B (YoY +27.1%), Operating Income ¥18.0B (YoY +49.8%), Ordinary Income ¥21.0B (YoY +35.0%), and Net Income attributable to owners of the parent ¥14.0B (turning profitable from prior ¥-2.4B), EPS ¥49.04, Dividend ¥12.0. Progress rates are Revenue 78.7% (¥991.1B/¥1,260.0B), Operating Income 66.7% (¥12.0B/¥18.0B), Ordinary Income 74.1% (¥15.6B/¥21.0B); the company expects incremental Revenue ¥+268.9B and Operating Income +¥6.0B in H2. Assuming recovery in electronic components market and project build-up, the plan calls for Revenue +¥268.9B and an operating margin improvement to 1.4% (full-year ¥18.0B/¥1,260.0B), but final profit is set conservatively factoring in the drop-off of special gains and tax rate normalization. Dividend ¥12.0 (forecast payout ratio 24.5%) is a cut from current-year ¥18.5 but is inferred to maintain a dividend total roughly equal to prior year ¥4.3B. In a recovery scenario, inventory and receivables may rebuild, posing downside risk to operating CF versus this fiscal year, but FCF base is expected to remain.
Interim and year-end dividends totaled ¥18.5 (interim ¥6.0, year-end ¥12.5) with total dividends ¥4.3B. Payout ratio is incalculable (final net loss) but total dividends / operating income gives 35.8%, a healthy level. FCF ¥54.3B versus dividends ¥4.4B gives an FCF coverage of 12.3x, indicating substantial capacity. Share buybacks of ¥15.0B were executed, bringing total shareholder returns to ¥19.4B, exceeding operating income. Total return ratio is 161.7% relative to operating income and 35.7% relative to FCF, showing an aggressive stance, but sustainability is supported by net cash ¥278.3B. Forecast dividend ¥12.0 for FY2027 is a reduction, but with projected net income ¥14.0B implies payout ratio 24.5% and room for upside depending on results. While a formal shareholder return policy is not stated, the company appears to favor stable dividends combined with flexible share buybacks.
Segment concentration risk: The Electronic Components Business accounts for 65.1% of revenue and the majority of operating income, making performance highly sensitive to semiconductor cycles and price competition. In market downturns, concurrent gross margin declines and inventory valuation losses may occur, and with a thin operating margin of 1.2% the risk of falling into loss is elevated. Managing inventory level ¥124.4B (12.5% of sales) and improving turnover (current 2.99x) are key challenges.
High tax burden and capital efficiency: A 60.0% effective tax rate suppresses net income and ROE, resulting in ROE -0.4% and estimated ROIC 2.3%, both very low. Accumulation of deferred tax liabilities ¥18.7B suggests timing differences in realization of securities valuation gains and normalization of tax burden may take time. The restrained capex / depreciation ratio 0.34x supports short-term cash generation but may constrain mid-to-long-term earning capacity.
Increase in intangible assets and goodwill risk: Intangible assets ¥16.1B (prior ¥1.0B) surged and goodwill amortization ¥0.5B has commenced. If earnings contributions from subsidiaries and M&A fall short, impairment losses (¥0.2B recorded this period) could expand and amortization burdens rise, pressuring profits. Continued equity-method losses ¥2.1B indicate need to reassess related-party investments totaling ¥0.97B.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 1.2% | 3.4% (1.4%–5.0%) | -2.1pt |
| Net Profit Margin | -0.2% | 2.3% (1.0%–4.6%) | -2.5pt |
Both operating and net margins are well below industry medians, placing the company in the lower tier within the trading company sector. Continued gross margin improvement and SG&A control are essential.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -14.6% | 5.9% (0.4%–10.7%) | -20.4pt |
Growth lags industry median by -20.4pt, reflecting the impact of the electronic components cycle. If the FY2027 projection of +27.1% materializes, the company could catch up to the upper segment of the industry.
※Source: Company compilation
Improvement to gross margin 10.6% and SG&A control raised operating margin to 1.2% (+0.7pt), but the -2.1pt gap vs industry median 3.4% is substantial. Expansion into higher value-added areas (design support, software development) and strengthening price negotiation power are keys to improving operating efficiency. The Electronic Components Business margin 3.6% is driving company-level performance; project pipeline and order backlog depth in this business will be leading indicators for top-line recovery.
Net cash ¥278.3B, Operating CF ¥58.2B, and FCF ¥54.3B demonstrate very strong cash generation and financial health, giving ample capacity for growth investment. However, ROE -0.4% and ROIC 2.3% indicate low capital efficiency; monitoring the earnings contribution and payback from M&A/investment (noting intangible assets increase ¥16.1B and commencement of goodwill amortization) is important. The restrained capex / depreciation ratio 0.34x helps short-term cash accumulation but appropriate reinvestment is necessary to maintain competitiveness over the medium-to-long term.
Special gains ¥13.4B accounted for 45.7% of profit before tax, highlighting divergence from recurring earnings. FY2027 assumes the lapse of special gains and tax rate normalization, so operating income build to ¥18.0B is the basis for profit growth. Inventory and receivable rebuild in a revenue recovery could worsen working capital, but substantial net cash provides resilience. Forecast dividend ¥12.0 (payout ratio 24.5%) is conservative and could be upwardly revised. Timing of electronic components demand recovery and improvement in inventory turnover (current 2.99x) will determine the earnings range.
This report is an AI-generated financial analysis document produced by analyzing XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company from public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed before making any investment decisions.