NANSO Transport Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥1.17B
• Net Income: ¥885M
• EPS: ¥83.15

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Nanso Transport Co., Ltd. (TSE: 9034) reported FY2026 Q2 (cumulative) consolidated results under JGAAP with operating income of ¥1,171 million (-1.5% YoY) and net income of ¥784 million (-11.4% YoY). Revenue and gross profit were not disclosed in XBRL for this period, limiting margin analysis; our assessment focuses on disclosed non-zero items. Ordinary income of ¥1,191 million exceeded operating income, indicating positive non-operating contributions that more than offset interest expense of ¥27 million. The effective tax burden appears meaningful, with taxes of approximately ¥387 million implying an effective tax rate around one-third of pre-tax income. Balance sheet quality is strong: total assets of ¥33.6 billion and total equity of ¥22.6 billion imply an equity ratio of roughly 67%, despite the reported equity ratio field showing 0% due to non-disclosure. Leverage is conservative with liabilities/equity at about 0.51x, and liquidity is sound with a current ratio of ~140% and positive working capital of ¥1.72 billion. Interest coverage is robust at ~43x (operating income/interest), suggesting low financial risk. Cash flow statements were not disclosed, preventing assessment of operating cash flow and free cash flow; conclusions about earnings quality and dividend coverage must therefore be tentative. EPS was ¥83.15 for the half-year, consistent with mid-sized profitability; per-share balance sheet metrics were not disclosed. DuPont decomposition is constrained by the absence of revenue and asset turnover data, but financial leverage is modest at ~1.49x (assets/equity). The larger decline in net income relative to operating income points to higher tax expense and/or non-operating/extraordinary items as drivers of the YoY contraction at the bottom line. Non-operating income appears positive (ordinary income > operating), offering a partial buffer to operating softness. Inventory and cash balances were not disclosed; we do not interpret zeros as actual values. Overall, the company presents a financially conservative profile with solid profitability at the operating level and ample interest coverage, though the lack of revenue and cash flow disclosures limits full assessment of sustainability. We refrain from forward-looking recommendations but outline key metrics to monitor and highlight areas where additional disclosure would materially improve analytical confidence.

Profitability Analysis

ROE_decomposition: A full DuPont breakdown is not possible due to undisclosed revenue and asset turnover. Based on disclosed figures, financial leverage (Assets/Equity) is ~1.49x (¥33,625m / ¥22,590m). Using period-end equity as a rough proxy, half-year ROE approximates ~3.5% (¥784m / ¥22,590m), or ~7% annualized, acknowledging the limitations of using end-period rather than average equity and the effects of seasonality. margin_quality: Revenue and gross profit were not disclosed; however, operating income was ¥1,171m (-1.5% YoY), and ordinary income was ¥1,191m, implying positive non-operating items net of ¥27m interest expense. The effective tax burden (~33% of pre-tax income, see below) contributed to a larger decline in net income (-11.4% YoY) than operating income. operating_leverage: With revenue undisclosed, we cannot quantify operating leverage. The modest decline in operating income (-1.5% YoY) suggests relatively stable operating cost control. Ordinary income exceeding operating income indicates some resilience from non-operating gains (e.g., dividends, equity-method income, or other recurring items) offsetting interest costs.

Growth Assessment

revenue_sustainability: Revenue is undisclosed; therefore, we cannot assess top-line momentum or customer mix. Stability in operating income suggests no major deterioration in core demand through H1, but the absence of revenue prevents a definitive view on volume vs. price dynamics. profit_quality: Ordinary income exceeded operating income despite interest expense, indicating recurring non-operating support. The net income decline (-11.4% YoY) relative to operating income (-1.5% YoY) points to tax and/or below-the-line items as the key drag. Interest coverage remains strong (~43x), supporting the quality of operating earnings. outlook: With H1 net income at ¥784m and a conservative balance sheet, the company appears operationally stable. However, without revenue, cash flow, and capex data, we cannot opine on growth durability or margin trajectory. Additional disclosure on volume trends, pricing, and cost pass-through (fuel, labor) would clarify the outlook.

Financial Health

liquidity: Current assets ¥6,058m vs. current liabilities ¥4,334m yield a current ratio of ~1.40x and working capital of ¥1,724m, indicating adequate short-term liquidity. Quick ratio equals current ratio due to undisclosed inventories. solvency: Total liabilities ¥11,491m vs. equity ¥22,590m imply debt-to-equity of ~0.51x and an equity ratio of ~67% (equity/total assets). Interest coverage is ~43x, underscoring low financing risk. capital_structure: Conservative leverage with assets/equity ~1.49x. The mix of liabilities (short vs. long-term debt, lease liabilities) is not disclosed; nonetheless, headline leverage is modest, and liquidity coverage is comfortable.

Cash Flow Quality

earnings_quality: Operating cash flow (OCF), investing cash flow, and financing cash flow were not disclosed; OCF/Net income and free cash flow cannot be evaluated. As such, we cannot validate accruals quality or cash conversion. FCF_analysis: Free cash flow was not disclosed. The absence of capex data prevents assessment of maintenance vs. growth investments, which is particularly relevant for asset-intensive logistics businesses. working_capital: Current assets and liabilities imply positive working capital of ¥1,724m. Without component details (receivables, payables, inventories), we cannot assess cycle efficiency or changes QoQ/YoY.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio were not disclosed; hence dividend policy and actual distribution levels are unknown for the period. EPS is ¥83.15 for H1, suggesting internal capacity to support dividends in principle, but this cannot be substantiated without policy disclosure. FCF_coverage: FCF coverage cannot be assessed due to undisclosed OCF and capex. Balance sheet strength (equity ratio ~67%, low leverage) provides flexibility, but cash generation evidence is required for confirmation. policy_outlook: No guidance or policy parameters (target payout, stability, or progressive policy) were disclosed. We would look for management commentary on capital allocation priorities (capex for fleet/warehouses, M&A, shareholder returns).

Risk Assessment

Business Risks:

• Exposure to fuel price volatility and the effectiveness/timeliness of fuel surcharge pass-through.
• Driver labor constraints and wage inflation amid industry-wide labor reforms, potentially pressuring margins.
• Customer concentration risk typical in regional logistics, which could impact pricing power and volumes.
• Competitive pricing pressure in domestic freight and contract logistics.
• Operational risks related to fleet utilization, maintenance, and potential accidents or service disruptions.

Financial Risks:

• Potential capex intensity (vehicles, depots, IT) that could strain free cash flow in investment upcycles.
• Refinancing or interest rate risk is limited currently given low leverage, but rising rates could incrementally raise finance costs.
• Working capital swings (receivables collections, seasonal demand) could affect cash conversion absent strong controls.
• Limited visibility due to undisclosed cash flow statements, constraining assessment of liquidity buffers.

Key Concerns:

• Non-disclosure of revenue and cash flow statements limits margin and cash conversion analysis.
• Net income declined more than operating income, suggesting taxes and/or below-the-line items as drags.
• Dividend policy and payout not disclosed, hindering assessment of shareholder return sustainability.

Investment Implications

Key Takeaways:

• Operating income stable at ¥1,171m (-1.5% YoY) with ordinary income slightly higher at ¥1,191m.
• Net income ¥784m (-11.4% YoY), with an implied effective tax rate ~33%.
• Strong balance sheet: equity ratio ~67%, debt-to-equity ~0.51x, current ratio ~1.40x.
• Interest coverage ~43x indicates low financial risk.
• DuPont leverage component modest at ~1.49x; asset turnover and margins not assessable due to undisclosed revenue.
• Cash flow and DPS not disclosed; visibility on FCF and dividend sustainability is limited.

Metrics to Watch:

• Revenue growth and operating margin once disclosed.
• Operating cash flow, capex, and free cash flow conversion.
• Effective tax rate trajectory and any extraordinary items.
• Asset turnover and utilization metrics.
• Labor cost ratio and fuel surcharge pass-through effectiveness.
• Net debt/EBITDA (once EBITDA and cash are disclosed) and liquidity headroom.

Relative Positioning: Based on disclosed items, the company exhibits stronger-than-average balance sheet conservatism (high equity ratio, low leverage) and robust interest coverage versus many domestic logistics peers, but the absence of revenue and cash flow disclosure limits comparability on growth, margins, and cash generation.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis