SEINO HOLDINGS CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥398.56B
• Operating Income: ¥18.10B
• Net Income: ¥6.39B
• EPS: ¥72.11

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

Seino Holdings (TSE:9076) reported solid mid-year results for FY2026 Q2 under JGAAP on a consolidated basis, with clear signs of margin improvement and disciplined cost control. Revenue grew 20.2% year over year to ¥398.6bn, indicating strong volume and/or pricing traction in core logistics operations. Operating income rose 38.4% YoY to ¥18.1bn, outpacing revenue growth and lifting the operating margin to approximately 4.5%, suggesting positive operating leverage. Net income increased 67.2% YoY to ¥10.8bn, with net margin at 2.70%, supported by low interest burden and improved operating profitability. Gross profit of ¥38.2bn implies a gross margin of 9.6%, consistent with a competitive yet improving cost structure in the trucking/logistics sector. EBITDA reached ¥29.0bn and EBITDA margin improved to 7.3%, reflecting higher capacity utilization and cost discipline. DuPont analysis shows ROE of 2.5% based on the provided Q2 period metrics, with asset turnover at 0.522x and financial leverage at 1.77x; on a full-year basis, ROE could deviate materially due to seasonality and partial-period effects. Liquidity is tight but positive, with a current ratio of 1.01x and a quick ratio of 0.92x, and working capital of ¥1.3bn just above breakeven. The balance sheet appears conservatively leveraged with total equity of ¥431.0bn against total liabilities of ¥347.3bn; interest expense is minimal at ¥0.2bn in the half, producing an interest coverage of 87x. Operating cash flow of ¥22.8bn comfortably exceeded net income (OCF/NI 2.12x), indicating solid earnings quality and favorable working capital dynamics in the half. Ordinary income of ¥18.5bn and income taxes of ¥4.8bn imply a normalized tax burden in the mid-20s to low-30s percent range, although exact pre-tax income is not disclosed. Reported effective tax rate of 0.0% in the summary is clearly a placeholder and not reflective of actual tax expense. Several items are unreported (e.g., investing cash flows, cash and equivalents, DPS, equity ratio, share counts), which constrains certain analyses including FCF and per-share metrics. Despite these data gaps, the available numbers point to improving profitability, strong cash generation versus earnings, and manageable leverage. The outlook hinges on sustaining revenue momentum, preserving cost gains amid fuel and labor inflation, and executing fleet/IT investments without eroding cash flow. We acknowledge data limitations and focus conclusions on disclosed, non-zero items, avoiding inferences from fields flagged as zero due to non-disclosure.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 2.70% (¥10.8bn NI on ¥398.6bn revenue)
• asset_turnover: 0.522x (Revenue ¥398.6bn / Total assets ¥764.1bn)
• financial_leverage: 1.77x (Assets ¥764.1bn / Equity ¥431.0bn)
• calculated_ROE: 2.5% (partial-period; not annualized) margin_quality: - Gross margin 9.6% (¥38.2bn GP) indicates modest improvement potential within a low-margin industry. - Operating margin ~4.5% (¥18.1bn OI) improved YoY with OI growth (+38.4%) outpacing revenue growth (+20.2%). - EBITDA margin 7.3% (¥29.0bn) reflects enhanced operating efficiency and cost control. - Net margin 2.70% benefitted from minimal interest expense (¥0.2bn) and disciplined costs; special items between ordinary and net likely present but not fully detailed. operating_leverage: Positive operating leverage evident: revenue +20.2% vs operating income +38.4%. This suggests fixed-cost absorption improvements and/or successful yield management. Further leverage sensitivity remains to fuel, subcontracting, and labor costs.

Growth Assessment

revenue_sustainability: Revenue rose 20.2% YoY to ¥398.6bn, implying strong demand or share gains. Sustainability depends on macro freight volumes, pricing discipline, and mix shift toward higher-value logistics solutions. profit_quality: Ordinary income (¥18.5bn) slightly exceeded operating income (¥18.1bn), indicating modest non-operating tailwinds (e.g., financial income or equity method). Net income (¥10.8bn) includes tax expense (¥4.8bn) and potential below-the-line items; nonetheless, OCF > NI supports earnings quality. outlook: With higher utilization and cost discipline, margins can remain resilient, but cost inflation (fuel/labor), wage revisions, and potential freight rate normalization are key watchpoints. Investment in fleet renewal and digitalization, if executed efficiently, should support medium-term competitiveness.

Financial Health

liquidity: - Current assets ¥233.6bn vs current liabilities ¥232.3bn yield current ratio 1.01x; quick ratio 0.92x excluding inventories (¥19.5bn). - Working capital is positive at ¥1.3bn, indicating tight but adequate near-term liquidity. solvency: - Total liabilities ¥347.3bn vs equity ¥431.0bn suggest a solid equity cushion; leverage modest with financial leverage 1.77x. - Interest coverage is strong at 87.4x (OI/interest), reflecting low interest burden. capital_structure: Debt-to-equity reported at 0.81x (likely interest-bearing liabilities over equity), consistent with manageable leverage for a logistics operator. Equity ratio field is unreported; rely on absolute equity levels relative to assets.

Cash Flow Quality

earnings_quality: Operating cash flow of ¥22.8bn vs net income of ¥10.8bn (OCF/NI 2.12x) indicates robust cash conversion, likely benefiting from working capital inflows and non-cash D&A (¥10.9bn). FCF_analysis: Investing cash flow is unreported (0 placeholder), preventing a computed FCF. However, EBITDA of ¥29.0bn provides capacity to fund maintenance capex and selective growth investments; net FCF depends on actual capex cadence. working_capital: Quick ratio at 0.92x implies reliance on timely receivables collection; the positive OCF suggests working capital discipline in the half. Continued monitoring of receivables days and subcontractor payables is warranted.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio fields are unreported (zeros are placeholders). EPS is ¥72.11 for the half, but without declared DPS we cannot compute an actual payout ratio. FCF_coverage: With investing cash flows unreported, FCF cannot be assessed; thus, dividend coverage by FCF cannot be concluded from the provided data. policy_outlook: No dividend policy details are disclosed in the dataset. Historically, logistics companies often target stable dividends aligned with normalized earnings and cash flow; actual policy for this issuer must be confirmed from corporate disclosures.

Risk Assessment

Business Risks:

• Fuel price volatility impacting line-haul and pickup/delivery costs
• Driver shortages and wage inflation affecting labor availability and cost base
• Freight demand cyclicality tied to domestic consumption and industrial production
• Competitive pricing pressure in parcel/LTL and enterprise logistics
• Regulatory changes (work-style reforms, hours-of-service) constraining capacity
• Operational execution risks in network optimization and digital transformation

Financial Risks:

• Tight liquidity metrics (current ratio ~1.01x, quick ratio ~0.92x)
• Potential increase in capex for fleet/IT could strain near-term FCF
• Exposure to credit risk from corporate customers in a slowdown
• Interest rate normalization could raise financing costs from low base (though current interest burden is minimal)

Key Concerns:

• Sustainability of revenue growth following a strong +20% YoY print
• Maintaining operating leverage while absorbing wage and fuel inflation
• Visibility on capex and cash deployment given unreported investing cash flows
• Dividend visibility and capital allocation policy amid incomplete disclosures

Investment Implications

Key Takeaways:

• Strong top-line growth (+20.2% YoY) with disproportionate operating income growth (+38.4%) indicates healthy operating leverage.
• Margin profile improved: operating margin ~4.5%, EBITDA margin 7.3%, net margin 2.70%.
• Cash conversion solid with OCF/NI at 2.12x; interest coverage very strong at 87x.
• Balance sheet conservative with equity of ¥431.0bn and modest leverage (financial leverage 1.77x).
• Liquidity is tight but positive (current ratio 1.01x; quick ratio 0.92x), requiring continued working capital discipline.
• Several critical items are unreported (investing CF, cash balance, dividend data), limiting FCF and payout assessment.

Metrics to Watch:

• Revenue growth and yield (price/mix) sustainability in H2
• Operating margin trajectory and cost inflation pass-through (fuel, labor, subcontracting)
• Capex level and composition (fleet, hubs, IT) to infer FCF trajectory
• Receivables collection and payables terms to sustain OCF
• Interest-bearing debt and maturity profile amid rate environment
• Tax rate normalization vs special items below ordinary income

Relative Positioning: Within Japan’s logistics sector, the company demonstrates improved operating leverage and strong cash conversion relative to typical low-margin peers, supported by low interest burden and a solid equity base; however, liquidity tightness and incomplete disclosure on investing cash flows and dividends temper near-term visibility.

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