| Metric | Current Period | Previous Year Same Period | YoY |
|---|---|---|---|
| Revenue | - | - | - |
| Operating Income | ¥1.98B | ¥0.24B | +730.1% |
| Ordinary Income | ¥2.23B | ¥0.45B | +398.7% |
| Net Income | ¥1.51B | ¥0.34B | +347.5% |
| ROE | 3.5% | 0.8% | - |
Mito Securities Co., Ltd. (non-consolidated) recorded a strong start to Q1 of the fiscal year ending March 2027, with Operating Income, Ordinary Income, and Net Income (non-consolidated net income) all increasing substantially year on year. Operating Income was ¥1.98B (¥0.24B in the previous year, YoY +730.1%), Ordinary Income was ¥2.23B (¥0.45B in the previous year, YoY +398.7%), and Net Income was ¥1.51B (¥0.34B in the previous year, YoY +347.5%). Although SG&A expenses increased by +20.3%, the growth in Operating Income significantly exceeded this increase, while non-operating income, primarily dividends received, boosted Ordinary Income.
【Revenue】SG&A expenses were ¥3.68B, an increase of +20.3% year on year (from ¥3.06B to ¥3.68B). Despite this increase, Operating Income expanded substantially to ¥1.98B, suggesting that the earnings base expanded at a pace exceeding the increase in expenses.
【Profit and Loss】Operating Income was ¥1.98B (¥0.24B in the previous year, YoY +730.1%), while Ordinary Income was ¥2.23B (¥0.45B in the previous year, YoY +398.7%). Of the ¥0.25B in non-operating income, dividends received accounted for ¥0.21B (approximately 82% of the total), contributing to the increase in Ordinary Income. Extraordinary losses were limited to ¥0.01B, indicating a limited impact from one-time factors. After deducting income taxes and other taxes of ¥0.72B (effective tax rate of 32.3%) from Profit Before Tax of ¥2.23B, Net Income (non-consolidated net income) amounted to ¥1.51B (¥0.34B in the previous year, YoY +347.5%). The results are considered to represent higher revenue and earnings, supported by earnings growth exceeding the increase in SG&A expenses and a stable contribution from non-operating income, primarily dividend income.
【Profitability】ROE was 3.5%, and Net Income of ¥1.51B was reflected in the substantial increase in EPS to ¥25.04 (¥5.55 in the previous year, YoY +351.2%). 【Cash Flow Quality】Cash and deposits were ¥34.39B, an increase of +32.3% from ¥25.99B in the previous year. The current ratio, calculated from current assets of ¥64.03B and current liabilities of ¥36.69B, was high at 174.5%. 【Investment Efficiency】Investment securities were ¥16.83B, accounting for approximately 19.6% of total assets (¥85.69B), and serving as the source of ¥0.21B in dividends received. BPS was ¥723.14, an increase of +1.8% from ¥710.20 in the previous year. 【Financial Soundness】The Equity Ratio was 50.8%, down 7.7pt from 58.5% in the previous year. Although total assets expanded to ¥85.69B (¥73.16B in the previous year, +17.1%), net assets remained at ¥43.56B (¥42.78B in the previous year, +1.8%), indicating that the increase in liabilities led the expansion in assets. Interest-bearing debt (short-term borrowings) was ¥2.75B, unchanged from the previous year, while net cash reached approximately ¥31.6B relative to cash and deposits of ¥34.39B.
Cash and deposits were ¥34.39B, an increase of +¥8.40B (+32.3%) from ¥25.99B in the previous year. Total assets expanded by +¥12.53B (+17.1%) to ¥85.69B, while current liabilities increased by +¥11.23B (+44.1%) to ¥36.69B from ¥25.46B in the previous year. The expansion of customer-related current liabilities, which is characteristic of the securities industry, appears to have affected changes in funds. Interest-bearing debt consisted of short-term borrowings of ¥2.75B, unchanged from the previous year, suggesting that the primary factor behind the expansion in total assets was an increase in operating funds rather than financing through borrowings. Net assets were ¥43.56B, representing only a moderate increase of +1.8% from ¥42.78B in the previous year, while retained earnings accumulated to ¥20.01B.
Extraordinary losses were limited to ¥0.01B, and their impact on Net Income was limited. Non-operating income of ¥0.25B was a factor contributing to the increase in Ordinary Income, with dividends received accounting for the majority at ¥0.21B (approximately 82% of the total). Against Profit Before Tax of ¥2.23B, Net Income (non-consolidated net income) was ¥1.51B. The effective tax rate of 32.3% is within a standard range, with no significant divergence attributable to tax effects. The increase from Operating Income to Ordinary Income was primarily attributable to dividend income, while most of the quarterly profit resulted from improvement at the operating level. Overall, the quality of earnings appears stable. However, it should be noted that dividends received, a component of non-operating income, are linked to a certain extent to the dividend policies of the securities held and market fluctuations.
The year-end dividend for the previous fiscal year (the fiscal year ended March 2026) totaled ¥28, consisting of an ordinary dividend of ¥25 and a commemorative dividend of ¥3 (commemorating the company’s 105th anniversary). The dividend forecast for the fiscal year ending March 2027 remains undecided due to the difficulty of forecasting earnings; however, the company plans to pay a commemorative interim dividend of ¥3 (commemorating the company’s 105th anniversary) during the fiscal year. For the five fiscal years covered by the Seventh Medium-Term Management Plan (the fiscal years ending March 2026 through March 2030), the company has established a policy of setting the minimum annual dividend per share at ¥30, with a basic dividend policy targeting a Payout Ratio of approximately 50%. EPS for Q1 increased substantially to ¥25.04 (¥5.55 in the previous year), and the financial base of retained earnings of ¥20.01B and cash and deposits of ¥34.39B is considered to support the company’s capacity to implement its minimum dividend policy.
Dependence of non-operating income on dividends: Dividends received accounted for ¥0.21B (approximately 82% of the total) of non-operating income of ¥0.25B, creating a structure that is susceptible to the dividend policies of the securities held and market fluctuations.
Sharp expansion in current liabilities: Current liabilities increased by +44.1% year on year to ¥36.69B. Although this is believed to reflect the expansion of customer-related liabilities characteristic of the securities industry, the high level of liquidity—cash and deposits of ¥34.39B and a current ratio of 174.5%—provides a buffer.
Decline in the Equity Ratio: The Equity Ratio was 50.8%, down 7.7pt from 58.5% in the previous year. As the pace of total asset growth (+17.1%) exceeded the growth in net assets (+1.8%), monitoring of potential dilution of the capital base is considered necessary.
No industry benchmark data available
※Source: Compiled by the company
Operating Income, Ordinary Income, and Net Income all increased substantially year on year, confirming earnings growth exceeding the increase in SG&A expenses (+20.3%). The quarterly results can be characterized as reflecting operating leverage.
Although the Equity Ratio declined by 7.7pt from the previous year to 50.8%, liquidity and financial soundness remain high, with cash and deposits of ¥34.39B and net cash of approximately ¥31.6B.
The dividend policy establishes a minimum annual dividend of ¥30 for the five fiscal years from the fiscal year ending March 2026 through the fiscal year ending March 2030. The company plans to pay a commemorative dividend of ¥3 in the interim period of the fiscal year ending March 2027, demonstrating an emphasis on the continuity of shareholder returns.
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. Industry benchmarks are reference information compiled by the company based on publicly available earnings data. Investment decisions should be made at your own discretion and responsibility, in consultation with a professional adviser as necessary.
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