| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥84.28B | ¥77.45B | +8.8% |
| Operating Income | ¥5.53B | ¥2.55B | +116.9% |
| Ordinary Income | ¥6.00B | ¥3.34B | +80.0% |
| Net Income | ¥4.52B | ¥2.76B | +63.5% |
| ROE | 1.6% | 1.0% | - |
Q1 of the fiscal year ending March 2027 was characterized by higher revenue and higher profit, with Operating Income improving substantially to more than double the level of the same period of the previous year. Revenue was ¥84.28B (¥77.45B in the same period of the previous year, YoY +8.8%), Operating Income was ¥5.53B (¥2.55B, YoY +116.9%), Ordinary Income was ¥6.00B (¥3.34B, YoY +80.0%), and consolidated Net Income was ¥4.52B (¥2.76B, YoY +63.5%) (Net Income attributable to owners of the parent was ¥4.45B, YoY +63.6%). The primary drivers of profit growth were the penetration of freight rate and fee revisions and an improved business mix. The gross margin improved to 9.8%, up +3.4pt YoY, while the Operating Income margin improved to 6.6%, up +3.3pt.
【Revenue】Revenue was ¥84.28B (YoY +8.8%), with the core Transportation Business (revenue mix of 76.1%) remaining solid at +6.1%. The International Business posted the highest growth at +64.1%, while the Contract Transportation Business at +14.0% and the Distribution Processing Business at +7.5% also contributed to higher revenue. Meanwhile, the “Other” category, which is not included in the reported segments, was the only category to post a decline, at -5.8%.
【Profit and Loss】Operating Income increased substantially to ¥5.53B (YoY +116.9%), with significant margin improvements reflected in the gross margin of 9.8% (+3.4pt YoY) and Operating Income margin of 6.6% (+3.3pt). By segment, Operating Income in the Transportation Business increased +128.6%, while the International Business increased +166.7%, reflecting the success of price revisions and cost controls. Ordinary Income was ¥6.00B (YoY +80.0%), also supported by ¥0.93B in non-operating income, including ¥0.68B in dividend income. Consolidated Net Income was ¥4.52B (YoY +63.5%) after deducting ¥1.95B in income taxes and other taxes. Revenue and profit both increased.
The Transportation Business generated revenue of ¥64.14B (revenue mix of 76.1%, YoY +6.1%) and Operating Income of ¥4.49B (YoY +128.6%, margin of 7.0%), making it the main pillar of company-wide profit and the segment where the effects of price revisions were most evident. The Contract Transportation Business continued to achieve both higher revenue and higher profit, with revenue of ¥7.23B (+14.0%) and Operating Income of ¥0.73B (+45.3%, margin of 10.2%). The Distribution Processing Business generated revenue of ¥6.23B (+7.5%) and Operating Income of ¥1.07B (+15.9%, margin of 17.2%), maintaining the highest profit margin among all segments and contributing to an improvement in the company-wide margin. The International Business recorded the highest growth rate, with revenue of ¥5.00B (+64.1%), but its Operating Income was ¥0.22B (+166.7%, margin of 4.5%), leaving its profit margin at a relatively low level. The “Other” category posted lower revenue and profit, with revenue of ¥3.59B (-5.8%) and Operating Income of ¥0.23B (-8.3%).
【Profitability】The Operating Income margin was 6.6%, improving by +3.3pt from 3.3% in the same period of the previous year. The consolidated Net Income margin also improved to 5.4% from 3.6% in the same period of the previous year. ROE was 1.6% (quarterly actual, before annualization), reflecting the profit level for the current quarter. 【Cash Flow Quality】Operating Cash Flow (OCF) was ¥9.04B, approximately 2.0 times consolidated Net Income of ¥4.52B, indicating solid cash-generation capacity supporting earnings. 【Investment Efficiency】Capital expenditures of ¥2.74B amounted to only 58.3% of depreciation and amortization of ¥4.70B, indicating that investment remained at a restrained level. 【Financial Soundness】The Equity Ratio was 57.7%, a modest improvement from 56.9% in the same period of the previous year. However, current assets of ¥81.42B compared with current liabilities of ¥83.09B resulted in a current ratio of 98.0%, indicating a somewhat thin level of short-term liquidity.
Operating Cash Flow was ¥9.04B, down -5.6% YoY, but the subtotal before changes in working capital remained above the level of the same period of the previous year at ¥13.02B. Investing Cash Flow was -¥3.45B, of which capital expenditures accounted for -¥2.74B, partially offsetting proceeds from the sale of investment securities and other items. Financing Cash Flow was -¥1.57B, with dividend payments of ¥1.24B and share repurchases of ¥0.73B serving as the primary sources of cash outflow. As a result, Free Cash Flow (Operating Cash Flow + Investing Cash Flow) was positive at ¥5.60B, providing ample coverage for shareholder returns of ¥1.97B during the current quarter. It should be noted that working capital factors, including an increase in accrued expenses, contributed to the increase in Operating Cash Flow, and a reversal of these effects may occur in future quarters.
The improvement in profit during the current period was largely attributable to higher core business profitability, with limited reliance on temporary factors. Non-operating income of ¥0.93B was primarily composed of ¥0.68B in dividend income, representing structural earnings. Together with non-operating expenses of ¥0.45B, including ¥0.27B in interest expenses, these items resulted in Ordinary Income of ¥6.00B. Extraordinary income of ¥0.49B, primarily comprising a gain of ¥0.43B on the sale of investment securities, and extraordinary losses of ¥0.03B, consisting of losses on the disposal of fixed assets, were both small in scale and had a limited impact on Profit Before Tax of ¥6.47B. The difference between Ordinary Income of ¥6.00B and consolidated Net Income of ¥4.52B was primarily attributable to income taxes and other taxes of ¥1.95B, with no particular tax distortion observed. Meanwhile, comprehensive income of ¥3.05B was below Net Income of ¥4.52B. The difference was primarily attributable to a valuation difference on securities of -¥1.28B and adjustments related to retirement benefits of -¥0.20B, indicating that changes in the market value of held securities affected the assessment on a comprehensive-income basis.
Progress against the full-year plan was 25.2% for Revenue, 44.2% for Operating Income, and 43.8% for Ordinary Income. Compared with simple time-based allocation of 25%, profit progress was clearly ahead of schedule. Progress based on Net Income attributable to owners of the parent was 26.2% (actual result of ¥4.45B against the full-year forecast of ¥17.0B), remaining at a standard level. The early progress in profit is believed to reflect the early realization of the effects of price revisions centered on the Transportation Business, as well as growth in highly profitable segments such as the Distribution Processing Business. No revisions were made to the earnings or dividend forecasts during the current quarter.
The annual dividend forecast is ¥100 per share, resulting in a Payout Ratio of 20.9% based on forecast EPS of ¥479.58. During the current quarter, the Company conducted share repurchases of ¥0.73B. Combined with dividend payments of ¥1.24B, total shareholder returns amounted to ¥1.97B. The Total Return Ratio against Net Income for the quarter attributable to owners of the parent of ¥4.45B was 44.3%, with shareholder returns remaining within the current quarter’s Free Cash Flow of ¥5.60B.
Business concentration risk: The Transportation Business accounts for 76.1% of Revenue and the majority of segment Operating Income, resulting in a structure with relatively high sensitivity to changes in freight rates and supply-demand conditions.
Limited short-term liquidity: Current assets of ¥81.42B compared with current liabilities of ¥83.09B resulted in a current ratio of 98.0%, slightly below 1.0x. Although the Equity Ratio of 57.7% indicates a stable capital structure, short-term funding indicators remain at a level requiring ongoing monitoring.
Risk of a reversal in cash flow: Operating Cash Flow during the current quarter benefited from working capital factors, including the reversal of provisions for bonuses and an increase in accrued expenses. If these effects reverse, Operating Cash Flow may slow from the next quarter onward.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 6.6% | 7.1% (4.3%–8.6%) | -0.5pt |
| Net Income Margin | 5.4% | 5.9% (2.8%–8.5%) | -0.5pt |
Profitability is slightly below the industry median but remains within the IQR range.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.8% | 3.3% (0.2%–7.6%) | +5.5pt |
The Revenue growth rate is significantly above the industry median and represents a high level of growth within the industry.
Source: Compiled by the Company
The Operating Income margin improved by +3.3pt YoY to 6.6%, while the gross margin also improved by +3.4pt. This indicates a structural improvement in profitability resulting from price revisions and changes in the segment mix.
Progress against the full-year plan was 44.2% for Operating Income and 43.8% for Ordinary Income, substantially ahead of the 25% pace implied by time-based allocation.
Capital expenditures of ¥2.74B amounted to only 58.3% of depreciation and amortization of ¥4.70B, indicating a restrained level of investment. If this condition continues, the impact on the asset replacement cycle warrants monitoring.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson type, with an explicit five-year fade period). It is not a forecast of the market price or a recommendation of any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear (bearish) | ¥7,204 |
| base (base case) | ¥7,281 |
| bull (bullish) | ¥7,364 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥8,063 |
| Adjusted Forecast EPS | ¥508.1 |
| Cost of Equity r | 9.77% (10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 1.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 20.8% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the track record of guidance attainment in the same industry) |
| implied PBR / PER |
Sensitivity: ¥7,077–¥7,494 for ±1% in the cost of equity, and ¥7,254–¥7,298 for ω±0.1.
Notes:
(Calculation model: Residual Income Model / Interest-rate reference month: 2026-07 / This value is not intended to predict or guarantee the future stock price)
This report is an earnings analysis document automatically generated by AI through analysis of 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 disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting with a professional advisor as necessary.
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| 0.90x / 14.3x |
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.