| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥58.1B | ¥42.4B | +37.0% |
| Operating Income | ¥2.4B | ¥-5.8B | +141.3% |
| Ordinary Income | ¥4.5B | ¥-3.4B | +232.6% |
| Net Income | ¥10.2B | ¥0.7B | +1335.2% |
| ROE | 2.0% | 0.1% | - |
The most important point in these results is that the operating loss turned into operating income as earnings in the Securities Business recovered. Revenue was ¥58.1B (¥42.4B in the previous year, YoY +37.0%), while Operating Income turned positive at ¥2.4B (a loss of ¥-5.8B in the previous year), and Ordinary Income reached ¥4.5B (up +232.6%). Consolidated Net Income was ¥10.2B (¥0.7B in the previous year, YoY +1335.2%), of which Net Income attributable to owners of the parent reached ¥10.5B (up +730.4%). However, this sharp increase was substantially driven by the one-off gain on the sale of investment securities of ¥8.7B. The primary driver of higher revenue was an increase in operating revenue from the Securities Business amid a recovery in market conditions, while the return to operating profitability resulted from revenue growth outpacing the increase in expenses.
【Revenue】Revenue of ¥58.1B (YoY +37.0%) was attributable to substantial growth in the core Securities Business, where operating revenue from external customers increased to ¥56.3B (¥40.4B in the previous year). Although the Asset Management Business generated ¥0.4B and the Investment Business generated ¥1.4B, both on a small scale, the structure remains highly concentrated in revenue from the Securities Business, unchanged from the previous year. The increase in trading value accompanying the recovery in market conditions was the central backdrop to the revenue growth.
【Profit and Loss】Operating Income was ¥2.4B, representing a return to profitability from the previous year’s operating loss of ¥2.4B (reported as ¥-5.8B in the previous year). While Revenue increased +37.0%, selling, general and administrative expenses (SG&A) increased only to ¥54.4B (¥45.8B in the previous year, +19.0%), and the SG&A ratio improved by 14.1pt to 93.7% from 107.8% in the previous year. Ordinary Income of ¥4.5B exceeded Operating Income, supported by non-operating income of ¥2.9B, primarily dividend income of ¥2.3B. Profit Before Tax of ¥13.0B was mainly attributable to the recognition of extraordinary income, namely the gain on the sale of investment securities of ¥8.7B, and therefore diverges from the underlying earnings level excluding one-off factors. Revenue and profit increased.
The Securities Business returned to profitability, reporting Operating Income of ¥4.8B (¥-2.6B in the previous year) and becoming the main driver of group-wide earnings. The Asset Management Business reported a loss of ¥-0.7B (a loss of ¥-1.3B in the previous year, YoY +49.6%), while the Investment Business reported a loss of ¥-0.9B (a loss of ¥-1.4B in the previous year, YoY +32.1%). Both remained loss-making, but the magnitude of their losses narrowed. The recovery in earnings from the Securities Business was the primary driver of the improvement in group-wide operating results, while the Asset Management and Investment Businesses remain downward pressures.
【Profitability】The Operating Margin was 4.1%, representing a return to profitability from the previous year’s loss (equivalent to △13.6% of Revenue), while the consolidated Net Profit Margin was 17.5%. However, as Net Income benefited substantially from extraordinary income, the Operating Margin more accurately reflects underlying earnings power. ROE remained at 2.0%. 【Cash Quality】Cash and deposits were ¥318.8B, accounting for 23.2% of total assets, while the current ratio was 123.3%, indicating that short-term payment capacity was secured. 【Investment Efficiency】The total asset turnover ratio was low at 0.042x, indicating limited revenue-generating capacity relative to the asset base. Basic EPS was ¥33.82 (¥4.09 in the previous year, +726.9%), while BPS was ¥1,534.71 (¥1,523.27 in the previous year, +0.8%), indicating gradual accumulation of net assets. 【Financial Soundness】The Equity Ratio was 36.9%, down from 40.6% in the previous year. This decline was attributable to total assets increasing +10.5% while net assets increased only +0.5%. Interest-bearing debt consisted of short-term bonds of ¥120.9B, short-term borrowings of ¥75.1B, and long-term borrowings of ¥52.3B, indicating a relatively high dependence on short-term funding.
As no cash flow statement has been disclosed, funding trends are analyzed based on changes in the balance sheet. Cash and deposits increased by +¥76.4B (+31.5%) to ¥318.8B from ¥242.4B in the previous year, strengthening on-hand liquidity. Current assets expanded to ¥912.8B (¥817.7B in the previous year, +11.6%), while investment securities increased to ¥318.2B (¥285.3B in the previous year, +11.5%) and operating investment securities increased to ¥111.4B (¥109.5B in the previous year, +1.7%). Meanwhile, current liabilities increased to ¥740.1B (¥618.5B in the previous year, +19.7%), while short-term bonds remained flat at ¥120.9B. The accumulation of cash alongside expansion in both assets and liabilities can be interpreted as reflecting an increase in the scale of transactions in the Securities Business.
Consolidated Net Income of ¥10.2B requires evaluation separately from recurring earnings power, as extraordinary income, namely the gain on the sale of investment securities of ¥8.7B, accounted for approximately 66.7% of Profit Before Tax of ¥13.0B. Of non-operating income of ¥2.9B, dividend income of ¥2.3B represents recurring income from held securities, whereas extraordinary income is classified as a non-recurring factor. Comprehensive Income was ¥25.7B, substantially exceeding Net Income attributable to owners of the parent of ¥10.5B. This difference resulted from a ¥14.5B increase in valuation differences on available-for-sale securities. This divergence reflects changes in the market value of held shares and other securities and represents a factor with a different nature from Net Income, which reflects realized gains and losses.
The Group does not disclose earnings forecasts or dividend forecasts because its performance may fluctuate significantly due to changes in market conditions. In the previous fiscal year (the fiscal year ended March 2026), the interim dividend consisted of an ordinary dividend of ¥13 and a special dividend of ¥35, for a total of ¥48, while the year-end dividend consisted of an ordinary dividend of ¥34 and a special dividend of ¥35, for a total of ¥69. The annual dividend was ¥117. For the current fiscal year (the fiscal year ending March 2027), special dividends of ¥35 each are planned for the interim and year-end dividends, while ordinary dividends for both the interim and year-end periods remain undecided. The Company states that these will be disclosed based on the earnings environment and distributable amount at the end of the fiscal year. Given the substantial contribution of extraordinary income to Net Income for the current fiscal year, the Payout Ratio cannot be calculated at this time, and it is necessary to await disclosure at the time of the year-end financial results.
Market Dependence Risk: Operating revenue from external customers in the Securities Business of ¥56.3B accounts for 96.8% of total Revenue of ¥58.1B, resulting in an earnings structure in which fluctuations in equity market conditions and trading value are likely to directly affect performance.
Non-Recurring Nature of Earnings: Extraordinary income, namely the gain on the sale of investment securities, of ¥8.7B accounted for approximately 66.7% of Profit Before Tax of ¥13.0B, a factor supporting consolidated Net Income of ¥10.2B. This indicates a high degree of dependence on non-recurring factors.
Short-Term Funding Structure: Current liabilities of ¥740.1B include short-term bonds of ¥120.9B and short-term borrowings of ¥75.1B, with current liabilities accounting for 85.4% of total liabilities of ¥86.7B. The funding structure is predicated on the rollover of short-term funding.
Profitability and Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.1% | 13.4% (9.8%–53.2%) | -9.3pt |
| Net Profit Margin | 17.5% | 9.4% (7.2%–39.5%) | +8.1pt |
The Operating Margin is below the industry median, while the Net Profit Margin exceeds the median due to the contribution of extraordinary income.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year-on-Year) | 37.0% | 10.7% (2.1%–15.7%) | +26.3pt |
The Revenue Growth Rate is substantially above the industry median, indicating a relatively high pace of revenue growth.
※Source: Compiled by the Company
The return of Operating Income from a loss in the previous year to a profit of ¥2.4B indicates structural improvement driven by the recovery in earnings from the Securities Business.
The sharp increase in consolidated Net Income (+1335.2%) was substantially driven by the one-off gain on the sale of investment securities of ¥8.7B. The significant gap between this increase and the level of recurring earnings power represented by the Operating Margin of 4.1% is an important point in evaluating the quality of the financial results.
While Cash and deposits increased +31.5%, strengthening liquidity, the Equity Ratio declined to 36.9% from 40.6% in the previous year. The progression of the capital base relative to the expansion of total assets will therefore be an area to monitor going forward.
This report is an earnings analysis document automatically generated by AI based on XBRL financial results summary data. It is not intended to recommend investment in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed financial results data. Investment decisions should be made at your own responsibility, after consulting with a professional as necessary.
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