Okayamaken Freight Transportation CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥562M
• Net Income: ¥462M
• EPS: ¥319.76

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

岡山県貨物運送株式会社 (TSE:9063) reported solid profitability for FY2026 Q2 on a consolidated JGAAP basis, with operating income of ¥562m (+42.4% YoY) and net income of ¥648m (+40.6% YoY). Revenue and gross profit were not disclosed in the XBRL (zeros indicate missing items), so margin analysis at the top line is constrained; however, operating and net profit growth indicate clear underlying improvement. Ordinary income of ¥840m exceeded operating income by ¥278m, implying meaningful positive non-operating contributions net of ¥73m interest expense (likely investment income, subsidy income, or other non-operating gains). Depreciation and amortization of ¥781m exceeded operating income, highlighting an asset-intensive model consistent with a trucking/logistics operator; EBITDA is estimated at ¥1,343m. Liquidity appears tight but positive, with current assets of ¥13,052m and current liabilities of ¥13,000m implying a current ratio of 1.00x and working capital of ¥51m; inventory is small at ¥125m, consistent with the service nature of the business. The balance sheet is conservative: total assets of ¥48,681m and equity of ¥24,165m imply an equity ratio of roughly 49.7% (despite the reported 0.0% placeholder) and financial leverage of ~2.01x. Interest coverage is comfortable at ~7.7x on an EBIT basis, supported by higher earnings and manageable interest costs. Operating cash flow was strong at ¥1,315m, about 2.0x net income, indicating good earnings-to-cash conversion and likely favorable working capital movements; investing cash flows were not disclosed this quarter, limiting visibility on capex. Using period-end balances as a proxy, half-year ROE is approximately 2.7% (¥648m / ¥24,165m), annualizing to about 5–6% assuming earnings seasonality is limited; ROA on the same basis is roughly 1.3% for the half. The implied effective tax rate is around 28% (¥256m tax on ~¥904m pre-tax income), which aligns with a normalized range for domestic operations. Dividend data (DPS, payout, cash dividends) were not disclosed; thus, dividend capacity must be inferred from earnings and OCF rather than stated policy. Overall, the company demonstrates improved profitability, resilient non-operating income, solid solvency, and robust operating cash generation, tempered by tight liquidity and limited visibility on revenue, capex, and dividend policy. Key near-term watchpoints include cost inflation (drivers, fuel), yield management, and capital expenditure needs for fleet renewal given high D&A. The risk profile remains typical for a regional LTL/trucking operator: demand cyclicality, input cost pass-through, and labor availability constraints. Despite data gaps, the quarter suggests healthy momentum with improving earnings quality. We acknowledge significant disclosure limitations (revenue, cash and equivalents, investing CF, dividends, and share count are unreported), and base the analysis on the available non-zero metrics.

Profitability Analysis

ROE_decomposition: DuPont analysis is constrained by the lack of revenue disclosure. Using available data: Net profit margin cannot be computed without revenue; asset turnover cannot be computed; financial leverage is approximately 2.01x (Assets/Equity = ¥48,681m / ¥24,165m). Approximate half-year ROE = Net income / Equity ≈ ¥648m / ¥24,165m = 2.7% (annualized 5–6%), and ROA ≈ ¥648m / ¥48,681m = 1.3% for the half. margin_quality: Operating income rose 42.4% YoY to ¥562m with no reported gross profit; ordinary income of ¥840m indicates positive non-operating gains (¥278m above operating income) after ¥73m interest expense. Effective tax rate is ~28% (¥256m / ~¥904m pre-tax), suggesting low reliance on tax effects for net profit growth. D&A of ¥781m exceeding operating income implies EBITDA of ~¥1,343m and underscores high fixed-cost absorption typical in logistics. operating_leverage: High D&A and asset intensity suggest meaningful operating leverage: incremental revenue (unreported) likely contributed to disproportionate operating profit growth. Fixed-cost base (fleet, facilities, drivers) implies sensitivity to volume and yield; the 42% YoY OI growth indicates favorable mix/volume or improved pricing and cost discipline.

Growth Assessment

revenue_sustainability: Revenue is not disclosed this quarter; however, the magnitude of YoY growth in operating and net income suggests supportive demand and/or pricing. Sustainability will depend on maintaining shipment volumes, utilization, and rate discipline while managing fuel and labor pass-through. profit_quality: Net income growth (+40.6% YoY) is supported by EBIT expansion and positive non-operating items. OCF outpaced earnings (OCF/NI ~2.03x), indicating strong cash realization. The ~28% effective tax rate implies normalized tax treatment. outlook: Assuming stable macro activity in key served regions and continued cost pass-through, profitability should remain resilient. Risks stem from wage inflation, driver shortages, and fuel volatility. Given high D&A, capex for fleet renewal will be a key determinant of medium-term free cash flow.

Financial Health

liquidity: Current assets ¥13,051.6m vs. current liabilities ¥13,000.1m yields a current ratio of ~1.00x and quick ratio of ~0.99x; working capital is ¥51.5m, indicating tight but positive near-term liquidity. solvency: Total liabilities ¥23,984.8m vs. equity ¥24,165.0m imply a liabilities-to-equity ratio ~0.99x and an equity ratio near 49.7%. Interest coverage is ~7.7x (EBIT/interest), suggesting manageable debt service capacity. capital_structure: Balance sheet leverage (Assets/Equity ~2.01x) is moderate. The mix between interest-bearing and non-interest-bearing liabilities is not disclosed; however, the coverage metrics and equity buffer indicate conservative solvency.

Cash Flow Quality

earnings_quality: Operating cash flow of ¥1,315.1m vs. net income of ¥648.0m (OCF/NI ~2.03x) indicates strong earnings quality, likely aided by non-cash D&A and favorable working capital. FCF_analysis: Investing cash flow is undisclosed this quarter (reported as 0), so true free cash flow cannot be derived. Given D&A of ¥781m, maintenance capex needs are likely substantial for a trucking/logistics fleet; absent capex data, FCF is uncertain. working_capital: Tight working capital (¥51.5m) alongside strong OCF suggests effective collections and payable management during the period; sustainability will depend on seasonality and customer terms.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are not disclosed (zeros indicate missing data). With EPS of ¥319.76 for the half, theoretical capacity exists, but actual cash dividends are unknown. FCF_coverage: Free cash flow cannot be assessed without investing cash flows; therefore, dividend coverage by FCF cannot be evaluated this quarter. policy_outlook: No dividend policy detail provided. Given solid earnings and OCF, the company could consider distributions subject to capex requirements and liquidity constraints; confirmation awaits disclosure of capex and policy.

Risk Assessment

Business Risks:

• Fuel price volatility and effectiveness of fuel surcharge pass-through
• Driver shortages, wage inflation, and overtime regulation tightening
• Demand cyclicality in manufacturing/retail end-markets affecting volumes
• Competitive pricing pressure in regional trucking/LTL
• Accident/liability risks and insurance cost trends
• Regulatory changes in labor and logistics (e.g., 2024 workstyle reforms)
• Customer concentration and contract renewal risk

Financial Risks:

• Tight liquidity with ~1.00x current ratio and minimal working capital buffer
• Potentially high capex needs for fleet renewal relative to D&A
• Exposure to interest rate increases on floating-rate debt
• Limited visibility on investing cash flows and cash balances due to nondisclosure
• Covenant or refinancing risk if earnings weaken

Key Concerns:

• Lack of disclosed revenue and gross margin constrains full margin analysis
• Undisclosed investing cash flows obscure FCF and capex profile
• Undisclosed dividend data prevents assessment of capital return policy

Investment Implications

Key Takeaways:

• Strong profit momentum: OI ¥562m (+42% YoY), NI ¥648m (+41% YoY)
• Non-operating tailwinds: ordinary income ¥840m exceeds OI by ¥278m
• Robust cash conversion: OCF/NI ~2.0x
• Conservative solvency: equity ratio ~49.7%, leverage ~2.0x
• Tight liquidity: current ratio ~1.00x, working capital ¥51m
• Asset-intensive model: D&A (¥781m) > OI, EBITDA ~¥1,343m
• Interest burden manageable: coverage ~7.7x EBIT

Metrics to Watch:

• Revenue growth, yield per shipment, and utilization (currently undisclosed)
• Operating margin and ordinary income drivers
• Capex and investing cash flows to derive FCF
• OCF/NI ratio sustainability and working capital swings
• Equity ratio and interest coverage amid rate changes
• Fuel surcharge passthrough and wage cost trajectory
• Accident ratio and driver retention metrics

Relative Positioning: Appears to be a mid-sized regional freight/logistics operator with a conservative balance sheet and improving profitability; operational leverage and non-operating gains aided the quarter, but liquidity is tight and capex visibility is limited versus peers with fuller disclosure.

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