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 Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥499.1B | ¥458.6B | +8.8% |
| Operating Income | ¥38.4B | ¥36.5B | +5.0% |
| Ordinary Income | ¥38.2B | ¥36.7B | +4.2% |
| Net Income | ¥26.4B | ¥26.3B | +0.3% |
| ROE | 4.1% | 3.9% | - |
For Q1 of the fiscal year ending March 2027, the Company posted higher revenue and higher Operating and Ordinary Income; however, deterioration in the profitability of the electricity business limited Net Income attributable to owners of the parent to a slight decline. Revenue was ¥499.1B (+8.8% YoY), Operating Income was ¥38.4B (+5.0%), and Ordinary Income was ¥38.2B (+4.2%), while Net Income attributable to owners of the parent decreased slightly to ¥25.9B (△1.4%). The primary drivers of revenue growth were the sharp expansion of the Platform Business and the resilience of the LP Gas Business. On the profit side, selling, general and administrative expense efficiencies and scale expansion partially offset the decline in the gross margin.
【Revenue】Revenue increased 8.8% YoY to ¥499.1B. By segment, the Platform Business surged to ¥60.4B (+605.8% YoY; 12.1% of total revenue), becoming the primary driver of revenue growth. The core LPGas Business remained broadly flat at ¥209.3B (+0.9%; 41.9% of total revenue), while the City Gas Business declined to ¥137.0B (△1.5%; 27.5%) and the Electricity Business declined to ¥92.4B (△10.7%; 18.5%). Beginning this quarter, the Platform Business was separated from the LP Gas Business and established as an independent reporting segment, reflecting a shift in the business mix.
【Profit and Loss】Operating Income increased to ¥38.4B (+5.0%), while Ordinary Income increased to ¥38.2B (+4.2%). The gross margin declined to 35.0% from 37.2% in the previous year, a decrease of 2.1pt, primarily due to the Electricity Business’s Operating Income falling to ¥5.3B (△46.6%; margin of 5.8%). Meanwhile, the SG&A ratio improved to 27.4% from 29.2%, an improvement of 1.8pt, partially offsetting the impact of the lower gross margin. Extraordinary items were limited in scale, comprising extraordinary income of ¥0.9B (gains on sales of fixed assets, etc.) and extraordinary losses of ¥0.2B (losses on retirement of fixed assets), and therefore had no material impact on earnings from the Ordinary Income level onward. Against Ordinary Income of ¥38.2B, Net Income attributable to owners of the parent was ¥25.9B (△1.4%), with the primary differences consisting of income taxes of ¥12.5B and Net Income attributable to non-controlling interests of ¥0.5B. Overall, the Company achieved higher revenue and higher Operating and Ordinary Income, although final Net Income declined slightly.
The LPGas Business generated Revenue of ¥209.3B (+0.9%), Operating Income of ¥118.9B (+7.9%), and a margin of 56.8%, serving as the core contributor to Company-wide profits. Profit growth exceeded revenue growth, indicating improved profitability. The City Gas Business recorded Revenue of ¥137.0B (△1.5%), Operating Income of ¥44.9B (△2.6%), and a margin of 32.8%, resulting in only a slight decline in profit in line with lower revenue. The Electricity Business posted Revenue of ¥92.4B (△10.7%), but Operating Income fell to ¥5.3B (△46.6%) and the margin declined to 5.8%; the substantially greater rate of profit decline than revenue decline suggests an unfavorable mix of unit prices and procurement costs. The Platform Business recorded Revenue of ¥60.4B (+605.8%), Operating Income of ¥5.8B (+41.9%), and a margin of 9.5%, emerging as a new growth area through its separation as an independent segment and expansion in scale beginning this quarter. The gap in margins between segments is substantial (LPGas 56.8% versus Electricity 5.8%), making profitability improvement in the Electricity Business an important driver of Company-wide margin fluctuations.
【Profitability】The Operating Income margin was 7.7%, down 0.3pt from 8.0% in the previous year, while the Net Income margin, based on income attributable to owners of the parent, was 5.2%, down 0.5pt from 5.7%. The primary factor was the contraction in the gross margin to 35.0% (△2.1pt YoY), partially offset by efficiencies reflected in the SG&A ratio of 27.4% (an improvement of 1.8pt YoY). 【Cash Quality】Operating Cash Flow was ¥23.0B, equivalent to 0.89 times Net Income attributable to owners of the parent of ¥25.9B, with changes in working capital somewhat limiting cash generation. 【Investment Efficiency】ROE was 4.1%, reflecting the decline in the Net Income margin and changes in asset efficiency. 【Financial Soundness】The Equity Ratio rose to 42.7% from 40.9%, an increase of 1.8pt, and the capital base became relatively stronger as total assets contracted to ¥1504.2B from ¥1635.9B in the previous year.
Operating Cash Flow increased 7.7% YoY to ¥23.0B; however, an increase in inventories (△¥17.0B) and a decrease in trade payables (△¥49.2B) created headwinds from a working capital perspective, while income tax payments (△¥45.9B) also pressured cash generation. Investing Cash Flow was △¥15.8B, of which capital expenditures accounted for △¥13.8B, suggesting that maintenance and renewal of existing infrastructure were the primary uses of funds. Financing Cash Flow was △¥62.7B, with dividend payments of ¥55.8B and share repurchases of ¥1.7B, in addition to net repayments of borrowings, contributing to the cash outflow. As a result, Free Cash Flow (Operating CF + Investing CF) was limited to ¥7.2B, below the dividend payments made during the quarter. Working capital turnover efficiency will therefore influence the Company’s future cash-generating capacity.
Profit for the quarter was primarily generated by recurring business activities. Extraordinary income of ¥0.9B and extraordinary losses of ¥0.2B were both immaterial relative to Revenue, indicating a limited contribution from non-recurring factors. Non-operating items were broadly balanced, comprising non-operating income of ¥0.8B (including foreign exchange gains of ¥0.1B) and non-operating expenses of ¥1.0B (interest expenses of ¥1.0B), resulting in only a small difference between Ordinary Income and Operating Income. The difference between Ordinary Income of ¥38.2B and Net Income primarily reflected income taxes of ¥12.5B and income attributable to non-controlling interests of ¥0.5B, resulting in an effective tax burden ratio (income taxes / profit before tax) of approximately 32.2%. Comprehensive income was ¥29.3B (¥28.8B attributable to owners of the parent), exceeding Net Income. Valuation difference on available-for-sale securities contributed positively by +¥8.7B, while deferred hedge gains and losses contributed negatively by △¥5.2B. The divergence between Comprehensive Income and Net Income was attributable to these valuation-related OCI items.
The full-year plan calls for Operating Income of ¥200.0B (△6.0% YoY) and Ordinary Income of ¥200.0B (△5.7%), representing a conservative plan compared with the previous fiscal year’s actual results. Progress toward the full-year target was 19.2% for Operating Income (¥38.4B/¥200.0B) and 18.5% for Net Income attributable to owners of the parent (¥25.9B/¥140.0B), slightly below the simple one-quarter level of 25%. Demand for LP gas, electricity, and city gas is subject to winter-weighted seasonality, and the relatively slow progress as of Q1 should be taken into account when assessing consistency with the full-year plan. The fact that the earnings forecast was revised during the quarter indicates that the initial plan was reviewed, making it important to monitor progress from the second half onward.
The full-year dividend forecast is ¥55.00 per share, representing an increase from the previous fiscal year’s actual dividend of ¥51.50. Based on forecast full-year Net Income of ¥140.0B and estimated total dividend payments of approximately ¥58.6B calculated using the number of shares outstanding after deducting treasury shares, the Payout Ratio is approximately 42%. During the quarter, the Company repurchased ¥1.7B of its own shares. Accordingly, the scale of total shareholder returns, including dividends and share repurchases, remains limited. Free Cash Flow of ¥7.2B for the quarter was below dividend payments of ¥55.8B during the quarter, indicating that dividend funding primarily depends on cash on hand and cash generation over the full year.
Deterioration in Electricity Business profitability: Operating Income in the Electricity Business fell sharply by 46.6% YoY to ¥5.3B, and its margin of 5.8% was the lowest among the four segments. The decline in profit exceeded the revenue decline of △10.7%, suggesting deterioration in the mix of unit prices and procurement costs and creating a drag on the Company-wide margin.
Adverse working capital movement: Inventories increased 33.4% to ¥62.5B from ¥46.8B in the previous year, while trade payables declined to ¥149.1B from ¥197.4B. As a result, Operating Cash Flow of ¥23.0B was below Net Income of ¥25.9B, indicating that inventory and payment-term management is affecting short-term cash-generating capacity.
Interest-bearing debt and liquidity: Cash and deposits amounted to ¥184.5B against interest-bearing debt comprising long-term borrowings of ¥267.9B and short-term borrowings of ¥77.8B. Although current assets of ¥511.1B exceeded current liabilities of ¥458.8B, the buffer was limited, and the impact of working capital fluctuations on liquidity should be monitored.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 7.7% | 3.4% (0.8%–7.7%) | +4.3pt |
| Net Income Margin | 5.3% | 2.2% (0.5%–6.2%) | +3.0pt |
The Company’s Operating Income margin and Net Income margin both exceed the industry median, indicating a relatively strong position in terms of profitability.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.8% | 7.7% (0.8%–14.6%) | +1.1pt |
The Revenue growth rate is slightly above the industry median but below the upper bound of the IQR (14.6%), leaving growth at a mid-range level.
※Source: Compiled by the Company
Emergence of the Platform Business: The Platform Business, established as an independent segment beginning this quarter, surged to Revenue of ¥60.4B (+605.8% YoY) and Operating Income of ¥5.8B (+41.9%), expanding its composition ratio to 12.1%. Its quantitative positioning as a revenue source following the existing LP Gas and City Gas Businesses has been confirmed.
Margin compression in the Electricity Business: The Electricity Business’s Operating Income margin was 5.8%, substantially below those of the other segments (LPGas 56.8%; City Gas 32.8%), and Operating Income declined 46.6% YoY. The deterioration in profitability in the Electricity segment was one structural factor behind the Company-wide gross margin declining △2.1pt YoY.
Gap between working capital and cash generation: Operating Cash Flow of ¥23.0B was limited to 0.89 times Net Income attributable to owners of the parent of ¥25.9B, against a backdrop of a 33.4% increase in inventories and a decline in trade payables. Free Cash Flow of ¥7.2B was below dividend payments during the quarter, making working capital efficiency a structural factor that will influence future cash-generating capacity.
This is a mechanically calculated reference range based solely on publicly available data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear (Bearish) | 801円 |
| base (Base) | 871円 |
| bull (Bullish) | 909円 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | 608円 |
| Adjusted Forecast EPS | 140.2円 |
| Cost of Equity r | 9.15%（10-year Japanese Government Bond 2.65% + Equity Risk Premium 6.00% + Size Premium 0.50%） |
| Persistence Coefficient of Residual Income ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 41.6% |
| Forecast EPS Confidence Adjustment | ×1.028（based on the industry’s historical guidance achievement rate） |
| implied PBR / PER |
Sensitivity: 847円〜897円 at ±1% for the cost of equity, and 865円〜882円 at ±0.1 for ω.
Notes:
（Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value does not predict or guarantee future share prices）
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting professionals as necessary.
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| 1.43x / 6.2x |