These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥685.1B | ¥658.3B | +4.1% |
| Operating Income | ¥49.8B | ¥49.9B | -0.2% |
| Ordinary Income | ¥52.4B | ¥55.2B | -5.1% |
| Net Income | ¥13.9B | ¥25.8B | -45.9% |
| ROE | 0.6% | 1.1% | - |
The defining feature of the quarter was that, despite higher revenue, net income declined substantially, as a lower gross margin and increased tax burden pressured bottom-line earnings. Revenue increased to ¥685.1B (+4.1% YoY), while Operating Income was nearly flat at ¥49.8B (-0.2%), Ordinary Income declined to ¥52.4B (-5.1%), and Net Income fell substantially to ¥13.9B (-45.9%). The benefit of higher revenue was offset by a decline in gross margin (14.5%, -1.7pt YoY), while the recognition of extraordinary losses and an increase in the effective tax rate further widened the decline in Net Income.
【Revenue】Revenue increased 4.1% YoY to ¥685.1B. By segment, the Transportation Business grew to ¥317.8B (+4.5%, 46.4% of total), the Packaging Business to ¥149.8B (+6.4%), and the Warehousing Business to ¥114.2B (+7.8%), while the Testing Business declined to ¥55.3B (-5.7%). Demand related to automobiles and automotive parts drove overall performance.
【Profit and Loss】Operating Income was nearly flat at ¥49.8B, down 0.2% YoY. The SG&A ratio improved to 7.2% (8.6% in the previous year), but this was offset by a decline in gross margin to 14.5% (16.2% in the previous year). Ordinary Income was ¥52.4B (-5.1%), with foreign exchange losses of ¥3.1B and interest expenses of ¥2.9B weighing on results as non-operating expenses. Net Income was ¥13.9B (-45.9%); in addition to the recognition of ¥3.0B in extraordinary losses, the substantial corporate income tax burden of ¥36.0B (an effective tax rate of approximately 72% against pretax income) compressed bottom-line earnings. The results represent a pattern of higher revenue but lower earnings, with the benefit of increased revenue offset by lower margins and a higher tax burden.
The Warehousing Business demonstrated the highest profitability, with Operating Income of ¥22.8B (+7.9% YoY, operating margin of 20.0%), serving as the core contributor to company-wide earnings. The Transportation Business was the largest segment by scale, with revenue of ¥317.8B (+4.5%), but profitability deteriorated somewhat, with Operating Income of ¥17.1B (-6.6%, operating margin of 5.4%). The Packaging Business was nearly flat, with Operating Income of ¥9.2B (-2.7%, operating margin of 6.2%). The Testing Business posted a substantial decline in Operating Income to ¥3.4B (-54.1%, operating margin of 6.2%), suggesting deterioration in project profitability and capacity utilization. Other businesses outside the reportable segments recorded an Operating Loss of ¥3.0B, although the loss narrowed from the previous year. Profit margins differ significantly among segments, creating a structure in which the high dependence on the Warehousing Business affects the quality of company-wide earnings.
【Profitability】The Operating Margin was 7.3%, nearly flat from 7.6% in the previous year, while the Net Profit Margin declined substantially to 2.0% from 3.9%. Gross margin was 14.5%, down 1.7pt from 16.2% in the previous year, suggesting changes in the cost structure and project mix.【Cash Flow Quality】The substantial divergence between Ordinary Income of ¥52.4B and Net Income of ¥13.9B was primarily attributable to the increased corporate income tax burden of ¥36.0B (the effective tax rate was approximately 72% against pretax income of ¥49.9B).【Investment Efficiency】ROE was low at 0.6%, with the decline in Net Profit Margin being the primary factor behind the decrease in ROE.【Financial Soundness】The Equity Ratio improved to 56.8% (54.5% in the previous year), while liquidity was secured, with current assets of ¥886.9B versus current liabilities of ¥635.7B. Interest-bearing debt primarily consisted of long-term borrowings of ¥638.3B and bonds of ¥400.0B; compared with cash and deposits of ¥414.1B, the Company retains a certain level of financial flexibility.
As the cash flow statement has not been disclosed, cash trends are assessed based on movements in the balance sheet. Cash and deposits increased to ¥414.1B from ¥375.1B in the previous year, indicating a certain accumulation of funds. Meanwhile, short-term borrowings increased to ¥93.0B (+26.4% from ¥73.6B in the previous year), suggesting the possibility of short-term funding needs associated with working capital or investments. Accounts receivable and notes receivable were ¥355.2B, remaining nearly flat YoY, with no significant change in the collection cycle. Property, plant and equipment increased to ¥2813.4B from the previous year, indicating continued investment in logistics centers and related facilities. Overall, the funding structure combines investment and short-term financing while maintaining cash levels.
Operating Income, which indicates the earning power of the core business, was ¥49.8B, nearly in line with the previous year. At the Ordinary Income level, stable non-operating income, including dividend income of ¥5.9B and equity-method investment gains of ¥1.4B, contributed to results. On the other hand, non-operating expenses included foreign exchange losses of ¥3.1B and interest expenses of ¥2.9B, with non-core factors weighing on earnings. Extraordinary losses of ¥3.0B (including losses on disposal and sale of fixed assets) should be distinguished as temporary factors and evaluated separately from recurring earning power. The substantial divergence between Ordinary Income of ¥52.4B and Net Income of ¥13.9B was primarily attributable to the ¥36.0B corporate income tax burden in addition to extraordinary losses; the tax burden as a percentage of pretax income was approximately 72%, above normal levels. It is difficult to determine from the current period’s data alone whether this tax burden is temporary or structural, and future tax-rate trends should be monitored. Comprehensive Income was ¥45.2B, exceeding Net Income of ¥13.9B, primarily due to a ¥26.6B increase in valuation differences on securities.
Progress against the full-year plan was 24.0% for revenue, at ¥685.1B/¥2850.0B; 18.7% for Operating Income, at ¥49.8B/¥267.0B; and 19.1% for Ordinary Income, at ¥52.4B/¥275.0B. Compared with a simple benchmark of one-quarter, or 25%, revenue is broadly in line with the plan, while Operating Income and Ordinary Income are approximately 6–7pt behind, indicating somewhat slower progress. The full-year plan calls for higher revenue and higher earnings (revenue +5.6%, Operating Income +12.1%, Ordinary Income +10.6%), requiring earnings improvement toward the second half of the fiscal year given the decline in earnings during Q1. No revisions have been made to either the earnings forecast or the dividend forecast.
The annual dividend forecast is ¥112, implying a Payout Ratio of approximately 61.8% based on forecast full-year EPS of ¥181.34. The previous year’s dividend was ¥37 (an interim or partial-period result), making a simple comparison with the full-year dividend policy difficult; however, the Company has not revised its dividend forecast. Treasury stock declined substantially to ¥62.6B from ¥254.7B at the end of the previous year, suggesting that treasury shares were retired or disposed of. As a result, the treasury stock ratio relative to issued shares declined, affecting per-share metrics. Cash and deposits of ¥414.1B at the end of the quarter indicate a certain level of capacity to continue paying dividends.
High tax burden: Corporate income taxes for the quarter were ¥36.0B, resulting in an effective tax rate of approximately 72% against pretax income of ¥49.9B, substantially above normal levels. If this level continues, the downward pressure on Net Income could persist over the long term.
Deterioration in segment profitability: Operating Income in the Testing Business declined substantially to ¥3.4B (-54.1% YoY), while profitability also deteriorated in the Transportation Business, with Operating Income of ¥17.1B (-6.6%). The decline in the margin of the large-scale Transportation Business has a significant impact on company-wide earnings.
Increase in short-term funding needs: Short-term borrowings increased to ¥93.0B (+26.4% YoY), indicating funding needs associated with working capital and investment timing. While the Company has sufficient capacity to respond when compared with cash and deposits of ¥414.1B, the upward trend itself should be monitored.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 7.3% | 7.1% (4.3%–8.6%) | +0.2pt |
| Net Profit Margin | 2.0% | 5.9% (2.8%–8.5%) | -3.8pt |
The Operating Margin is slightly above the industry median, but the Net Profit Margin is substantially below the industry median, indicating that the impact of the tax burden and extraordinary losses is notable even within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.1% | 3.3% (0.2%–7.6%) | +0.8pt |
The Revenue Growth Rate is above the industry median, placing top-line growth in a relatively solid position within the industry.
※Source: Company analysis
Although higher revenue was achieved, the combination of a decline in gross margin and the high effective tax burden of approximately 72% resulted in Net Income declining substantially by -45.9% YoY. Whether this tax burden is temporary or structural will be a key point in assessing future earnings levels.
By segment, the Warehousing Business maintained the highest profitability in the Company, with an Operating Margin of 20.0%, serving as the core earnings contributor. Meanwhile, Operating Income in the Testing Business plunged -54.1% YoY, widening the profitability gap among businesses.
Treasury stock declined substantially from the end of the previous year, indicating a change in capital policy. In addition, short-term borrowings increased +26.4%, suggesting a change in the funding structure based on the financial results.
This is a mechanically calculated reference range based solely on publicly available data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥2,010 |
| base | ¥2,040 |
| bull | ¥2,072 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥2,029 |
| Adjusted Forecast EPS | ¥192.1 |
| Cost of Equity r | 9.27% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Parameter ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 61.8% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥1,985–¥2,097 at ±1% for the cost of equity, and ¥2,039–¥2,040 at ±0.1 for ω.
Notes:
(Calculation model: residual income model / Interest rate reference month: 2026-07 / This value does not predict or guarantee the future share price)
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. The 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, after consulting with a professional as necessary.
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| 1.01x / 10.6x |