MARUWN CORPORATION FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥680M
• Net Income: ¥512M
• EPS: ¥18.19

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

Maruun Co., Ltd. (TSE: 9067) reported solid profitability for FY2026 Q2 (cumulative), with operating income of ¥680 million, up 37.2% YoY, and net income of ¥525 million, up 3.1% YoY. Ordinary income of ¥763 million exceeded operating income by ¥83 million, indicating positive non-operating contributions beyond the modest ¥4 million interest expense. The balance sheet remains conservative: total assets are ¥37.4 billion, total liabilities ¥11.2 billion, and total equity ¥26.3 billion, implying an equity ratio of roughly 70% (management-reported equity ratio is unreported in the dataset). Liquidity appears healthy with a current ratio of 142% and working capital of ¥2.72 billion, supported by very low inventories (¥62 million), consistent with an asset-light logistics model. Interest coverage is strong at 170x, reflecting low financial risk and improved operating performance. Based on net income and taxes disclosed, the implied effective tax rate is approximately 36%, suggesting a normalizing tax burden. While revenue and gross profit are not disclosed in the feed, the sharp YoY rise in operating income points to either improved margin, better cost control, or mix/pricing benefits in core logistics operations. Non-operating income also aided bottom line resilience, partially offsetting sector headwinds such as labor cost inflation and fuel variability. With leverage low (liabilities/equity ~0.43x), the company has capacity to absorb cyclical shocks and fund maintenance capex. Cash flow statements were not disclosed; thus, earnings-to-cash conversion cannot be assessed this quarter. Dividend data were also not disclosed; we therefore cannot assess payout trends or coverage with precision. Given the sector context (domestic logistics), watchpoints include driver availability, wage increases, fuel surcharge pass-through, utilization, and contract repricing. Overall, the quarter underscores strengthening profitability, conservative financial position, and low interest burden, albeit with limited visibility on top-line dynamics and cash conversion. Annualizing the half-year results would imply a modest-low single-digit ROE, consistent with the firm’s low leverage and stable operations. Data limitations (notably revenue and cash flows) temper the assessment of margin quality and free cash flow. We expect further clarity at FY-end when full statements and management guidance are typically expanded.

Profitability Analysis

ROE_decomposition: DuPont metrics based on disclosed items are incomplete due to missing revenue. Using available data: financial leverage (Assets/Equity) ≈ 1.42x (37,411/26,255). Net margin and asset turnover cannot be computed without revenue. As a proxy, half-year ROA ≈ 1.4% (525/37,411), which annualized implies ~2.8%. Annualized ROE proxy ≈ ~4.0% ((525*2)/26,255), reflecting low leverage and moderate profitability. margin_quality: Operating income rose 37.2% YoY to ¥680m despite undisclosed revenue and gross profit. Ordinary income of ¥763m implies net non-operating income of ~¥87m (¥83m over OI plus ¥4m interest expense), likely from dividends, equity-method gains, or other non-operating items. The implied effective tax rate is ~35.9% (¥294m/¥819m pre-tax), within a normal range, suggesting low reliance on tax credits or one-offs for net profit. Without gross profit disclosure, we cannot quantify gross or operating margin shifts, but the scale of OI growth indicates cost control and/or pricing/mix improvements. operating_leverage: The 37.2% YoY increase in operating income indicates favorable operating leverage, but the degree cannot be quantified absent revenue. Given the logistics model (low inventories, likely significant labor/fuel/outsourcing costs), improved utilization and contract repricing likely amplified incremental margins. Non-operating contributions enhanced ordinary income but are not the main driver of OI expansion.

Growth Assessment

revenue_sustainability: Revenue is not disclosed for the period; therefore, sustainability of top-line growth cannot be assessed directly. Sector dynamics (contract logistics, B2B freight) typically yield sticky revenues with renegotiation cycles; sustainability hinges on customer retention, pricing pass-through (fuel/wage), and volume trends. profit_quality: Net income growth (+3.1% YoY) lagged operating income growth, implying higher taxes and/or lower non-operating gains YoY. Interest expense remains negligible (¥4m), suggesting profit quality is mainly operational. Absent cash flow data, we cannot confirm earnings-to-cash conversion. outlook: With a strong balance sheet and low interest burden, the company appears positioned to continue steady operations. Key determinants for 2H include demand resilience in domestic freight, success of rate/mix improvements, labor cost containment, and fuel surcharge efficacy. Non-operating income may continue to provide a modest tailwind but should not be relied upon as a core growth driver.

Financial Health

liquidity: Current assets ¥9.23bn vs current liabilities ¥6.51bn yields a current ratio of 141.8% and quick ratio of 140.8%, reflecting comfortable short-term coverage. Inventories are only ¥62m, indicating limited stock risk and a receivables/cash-heavy working capital structure. solvency: Total liabilities ¥11.21bn vs equity ¥26.26bn imply liabilities/equity of ~0.43x and an equity ratio around 70% (computed). Interest coverage is 170x, pointing to minimal financial risk. The conservative capital structure affords flexibility for maintenance capex and cyclical shocks. capital_structure: Low leverage and limited interest expense suggest reliance on equity and possibly operating leases (not visible in JGAAP). The asset base (¥37.41bn) relative to equity indicates moderate asset intensity for a logistics firm, likely reflecting fleet/real estate usage.

Cash Flow Quality

earnings_quality: Operating CF, investing CF, and financing CF are not disclosed, so OCF/NI and FCF cannot be assessed this quarter. Earnings quality appears supported by low interest burden and normal tax rate; however, confirmation via cash conversion is pending. FCF_analysis: Free cash flow cannot be computed due to missing OCF and capex. Given the business model, working capital swings (receivables/payables) and maintenance capex for vehicles/IT/warehouses are key determinants. working_capital: Working capital is ¥2.72bn (CA ¥9.23bn minus CL ¥6.51bn). The very low inventory level suggests limited inventory risk; receivables quality and collection cycle are the primary watchpoints. Payables terms and contract structures may mitigate cash conversion volatility.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are not disclosed in the dataset, so we cannot quantify payout levels. Semiannual EPS is ¥18.19; absent dividend data, payout cannot be inferred. FCF_coverage: Not assessable due to missing operating and investing cash flows. Coverage will depend on OCF after working capital and maintenance capex. policy_outlook: With low leverage, strong interest coverage, and a sizable equity buffer, the balance sheet appears supportive of ordinary dividends typical for domestic logistics peers. Confirmation awaits disclosure of dividend guidance and cash flow data at FY-end.

Risk Assessment

Business Risks:

• Domestic freight demand cyclicality tied to industrial activity and e-commerce volumes
• Driver shortages and wage inflation impacting cost base and service capacity
• Fuel price volatility and pass-through effectiveness in customer contracts
• Competitive pricing pressure in general cargo and contract logistics
• Operational disruptions (weather, disasters, supply chain bottlenecks) affecting utilization
• Regulatory changes including labor reforms (driver overtime limits) and safety standards
• Capex requirements for fleet renewal, IT, and environmental compliance (decarbonization)
• Customer concentration risk if large shippers dominate revenue

Financial Risks:

• Receivables collection risk and working capital swings affecting cash conversion
• Potential off-balance-sheet lease obligations under JGAAP not visible in the dataset
• Tax rate variability affecting net profit if non-operating items fluctuate
• Interest rate risk is currently low given minimal interest expense, but refinancing terms could change

Key Concerns:

• Revenue and gross profit not disclosed, limiting visibility on margin drivers
• Cash flow statements not disclosed, preventing assessment of earnings-to-cash conversion and FCF
• Dependence on labor availability and rising personnel costs in the logistics sector
• Sustainability of non-operating income contributions to ordinary income

Investment Implications

Key Takeaways:

• Operating income rose 37.2% YoY to ¥680m, indicating improved operating performance
• Net income of ¥525m grew 3.1% YoY, with an implied effective tax rate near 36%
• Ordinary income exceeded operating income by ¥83m due to positive non-operating items
• Balance sheet is conservative with an estimated ~70% equity ratio and liabilities/equity of ~0.43x
• Liquidity is solid (current ratio ~142%) with minimal inventory exposure
• Interest coverage is very strong at 170x, reflecting low financial risk
• Top-line and cash-flow metrics were not disclosed, limiting assessment of margin quality and FCF
• Working capital stands at ¥2.72bn, with receivables likely the main cash conversion lever

Metrics to Watch:

• Revenue growth and contract mix to gauge margin sustainability
• Operating and gross margins once disclosed to assess cost pass-through and utilization
• Operating cash flow, capex, and free cash flow to validate earnings quality
• Receivable days and payables days to monitor working capital efficiency
• Fuel cost pass-through rates and wage cost ratio
• Non-operating income/expense composition and sustainability
• Effective tax rate trends and any extraordinary gains/losses
• Guidance on dividends and capital allocation

Relative Positioning: Within domestic listed logistics peers, Maruun appears conservatively capitalized with low leverage, robust interest coverage, and likely stable contract-based revenues, though current disclosure gaps on revenue and cash flows limit margin and FCF comparability this quarter.

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