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 | ¥7276.6B | ¥6009.3B | +21.1% |
| Operating Income | ¥577.1B | ¥339.8B | +69.8% |
| Ordinary Income | ¥712.2B | ¥559.4B | +27.3% |
| Net Income | ¥672.1B | ¥508.3B | +32.2% |
| ROE | 2.1% | 1.6% | - |
The Q1 of FY2026 was characterized by higher revenue and profit, as well as a significant improvement in profitability, driven by revenue growth across all segments and the boost from extraordinary income. Revenue was ¥7,276.6B (+21.1% YoY), Operating Income was ¥577.1B (+69.8%), Ordinary Income was ¥712.2B (+27.3%), and Net Income attributable to owners of the parent was ¥671.1B (+33.5%). The Operating Income margin improved to 7.9%, up +2.3pt from 5.7% in the same period of the previous year, driven by the recovery in dry bulk and energy market conditions and the expansion of the logistics business. The increase in Net Income also included a contribution from extraordinary income of ¥205.3B, including a gain on the sale of non-current assets of ¥173.9B.
【Revenue】Revenue was ¥7,276.6B, up +21.1% YoY. By segment, Logistics was the largest contributor and recorded the highest growth rate at ¥2,711.8B (37.3% of total revenue, YoY+46.4%), followed by Dry Bulk at ¥1,748.8B (24.0%, +28.7%), Automotive at ¥1,443.3B (19.8%, +12.7%), Energy at ¥667.9B (9.2%, +38.8%), and Liner at ¥471.7B (6.5%, +5.9%). Revenue increased across all segments. Growth in Logistics, Dry Bulk, and Energy drove overall company growth.
【Profit and Loss】Operating Income was ¥577.1B (YoY+69.8%), and the Operating Income margin improved to 7.9%, up +2.3pt from 5.7% in the same period of the previous year. While the gross margin also improved to 20.1% from 17.1% in the previous year, the SG&A expense ratio rose to 12.2% from 11.4%. By segment, Energy led company-wide profit growth with profit of ¥239.6B (YoY+98.2%), while Dry Bulk returned to profitability with profit of ¥194.3B, compared with a loss of ¥27.7B in the previous year. In contrast, Liner reported profit of ¥100.2B (YoY-17.0%) and Automotive reported profit of ¥168.5B (YoY-41.7%), both down year on year, while Logistics fell into a loss of ¥24.0B, compared with profit of ¥32.1B in the previous year. Ordinary Income of ¥712.2B (+27.3%) was supported by equity-method investment income of ¥165.6B and dividend income of ¥48.4B. Net Income of ¥671.1B (+33.5%) benefited from the recognition of extraordinary income of ¥205.3B, including a gain on the sale of non-current assets of ¥173.9B. Overall, the company achieved higher revenue and profit.
Beginning this period, the company changed its reporting segment classification, and comparisons are based on figures after reclassification, with the Air Transportation Business transferred to “Other Businesses” and the Fuel Coal Business transferred from the Energy Business to the Dry Bulk Business. Energy achieved the highest profitability, with a margin of 35.9% and profit of ¥239.6B (YoY+98.2%), making it the core driver of company-wide profit growth. Dry Bulk posted profit of ¥194.3B, returning to profitability from a loss of ¥27.7B in the same period of the previous year, with its margin recovering to 11.1%. Despite a 12.7% increase in revenue, Automotive reported lower profit of ¥168.5B (YoY-41.7%), with its margin declining to 11.7%. Logistics recorded substantial revenue growth of +46.4%, but profit fell into a loss of ¥24.0B, compared with profit of ¥32.1B in the previous year, highlighting the divergence between revenue growth and profitability. Liner posted profit of ¥100.2B (YoY-17.0%, margin of 21.2%), apparently affected by the freight-rate environment. Profitability differs significantly among segments, making an improvement in Logistics profitability a key focus for the stability of company-wide earnings.
【Profitability】The Operating Income margin improved to 7.9% (5.7% in the previous year, +2.3pt), the Ordinary Income margin to 9.8% (9.3% in the previous year, +0.5pt), and the Net Income margin, based on income attributable to owners of the parent, to 9.2% (8.4% in the previous year, +0.9pt). 【Cash Quality】Extraordinary income, net, of ¥201.9B accounted for approximately 22% of Profit Before Tax of ¥914.2B, indicating a substantial contribution from temporary factors, including the ¥173.9B gain on the sale of non-current assets. 【Investment Efficiency】ROE was 2.1%; however, this represents Q1 actual results and is not an annualized figure, which should be noted. Investment securities accounted for a significant 37.5% (¥20,227.7B) of total assets, reflecting an asset-intensive balance sheet structure. 【Financial Soundness】The Equity Ratio was 59.0%, down -1.4pt from 60.4% at the end of the previous fiscal year. Interest-bearing debt, comprising total borrowings and bonds, increased by approximately ¥1,113.4B, while interest expense rose to ¥85.9B (¥49.2B in the previous year, +74.7%).
As cash flow statement data has not been disclosed, cash flow trends are analyzed based on changes in the balance sheet. Cash and deposits increased by ¥114.0B (+5.3%) from the end of the previous fiscal year to ¥2,259.9B. Meanwhile, inventories increased to ¥940.5B (up ¥214.8B, +29.6% from the end of the previous fiscal year), representing a cash absorption factor in terms of working capital. On the financing side, short-term borrowings increased to ¥216.8B (+¥61.6B, +39.7%), long-term borrowings to ¥731.6B (+¥122.1B, +20.0%), and bonds to ¥155.0B (+¥33.0B, +27.0%). This suggests that fleet investments and working capital requirements may have been financed through borrowings and bond issuance. The balance of treasury stock declined to ¥92.2B, from ¥164.9B at the end of the previous fiscal year (-¥72.7B). Overall, although the company is in a phase of profit growth, its financing structure has become somewhat more aggressive due to the accumulation of interest-bearing debt.
Of Ordinary Income of ¥712.2B, non-operating income of ¥247.0B primarily comprised equity-method investment income of ¥165.6B and dividend income of ¥48.4B. Equity-method income derived from the business has a certain degree of recurring nature, but is susceptible to market fluctuations. Extraordinary income of ¥205.3B, including a gain on the sale of non-current assets of ¥173.9B, less extraordinary losses of ¥3.4B, resulted in net extraordinary income of ¥201.9B, accounting for approximately 22% of Profit Before Tax of ¥914.2B. The substantial contribution of temporary factors to Net Income is an important consideration when assessing earnings quality. Comprehensive Income was ¥1,005.7B, substantially exceeding Net Income attributable to owners of the parent of ¥671.1B. The main factors were foreign currency translation adjustments of +¥65.7B and the share of OCI of equity-method affiliates of +¥292.0B. This divergence indicates that the valuation of foreign-currency-denominated assets and equity-method investments had a significant impact on Comprehensive Income.
The progress rates for Q1 against the full-year company plan (Revenue ¥2,881.0B, Operating Income ¥185.0B, Ordinary Income ¥250.0B, EPS ¥594.49, with the figures before conversion to B units provided in the main text) were 25.3% for Revenue, 31.2% for Operating Income, 28.5% for Ordinary Income, and 28.0% for Net Income (attributable to owners of the parent: ¥671.1B / full-year plan of ¥240.0B). Operating Income, Ordinary Income, and Net Income all exceeded the 25% benchmark for even quarterly progress, indicating that profit progress is running ahead of schedule. The earnings forecast assumes a full-year exchange rate of ¥157.22/US/MT. Provided the divergence from actual conditions remains limited, the likelihood of achieving the plan can be considered high. The company revised its earnings forecast and dividend forecast during the quarter.
The company’s full-year dividend forecast is ¥240 per share, implying a Payout Ratio of approximately 40.4% against forecast EPS of ¥594.49. The dividend paid in the same period of the previous year was ¥115; however, as the interim and year-end breakdown is not specified, no simple full-year comparison is made. The treasury stock balance declined from ¥164.9B at the end of the previous fiscal year to ¥92.2B at the end of the current period, possibly due to disposal or cancellation. This is a Payout Ratio based solely on dividends and should be distinguished from the Total Return Ratio, which also reflects changes in treasury stock.
Foreign Exchange Risk: The full-year earnings forecast assumes an exchange rate of ¥157.22/US$. If the actual exchange rate diverges from this assumption, earnings may be affected through mismatches between foreign-currency-denominated revenue and expenses. A foreign exchange loss of ¥5.8B was recorded in non-operating expenses.
Fuel Price Volatility Risk: The full-year earnings forecast assumes a fuel price of 741.44$/MT, based on the average consumption price for all fuel types. Market fluctuations may affect profitability through operating costs. The significant earnings volatility of market-linked segments such as Dry Bulk and Energy also highlights the importance of cost management.
Risk of Increased Interest-Bearing Debt and Interest Burden: Short-term borrowings increased by +39.7%, long-term borrowings by +20.0%, and bonds by +27.0%, while interest expense increased to ¥85.9B (¥49.2B in the previous year, +74.7%). The Equity Ratio declined to 59.0% from 60.4% at the end of the previous fiscal year, necessitating monitoring of financial leverage trends.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 7.9% | 7.1% (4.3%–8.6%) | +0.9pt |
| Net Income Margin | 9.2% | 5.9% (2.8%–8.5%) | +3.4pt |
Both the Operating Income margin and Net Income margin exceed the industry median, placing the company among the top performers in the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 21.1% | 3.3% (0.2%–7.6%) | +17.8pt |
The Revenue growth rate substantially exceeds the industry median, representing an outstanding pace of revenue growth within the industry.
※Source: Compiled by the Company
The Operating Income margin improved to 7.9% from 5.7% in the previous year, an increase of +2.3pt, while the gross margin also rose to 20.1% from 17.1%. Dry Bulk’s return to profitability and Energy’s high profitability, with a margin of 35.9%, contributed to the improvement in overall earnings power and may be viewed as an early indication of structural profitability improvement.
The increase in Net Income benefited from extraordinary income of ¥205.3B, including a gain on the sale of non-current assets of ¥173.9B, which accounted for approximately 22% of Profit Before Tax. It is important to distinguish recurring earnings power from temporary factors when assessing earnings sustainability.
The full-year progress rates of 31.2% for Operating Income and 28.5% for Ordinary Income exceeded the 25% benchmark for even quarterly progress. Provided the actual exchange rate of ¥157.22/US/MT remain close to the assumptions, progress toward achieving the plan can be considered favorable.
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). It is not a forecast of the market share price or a recommendation to undertake any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥7,556 |
| base | ¥7,736 |
| bull | ¥7,917 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥7,884 |
| Adjusted Forecast EPS | ¥639.5 |
| Cost of Equity r | 8.77% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 0.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 40.4% |
| Forecast EPS Confidence Adjustment | ×1.076 (based on the Company’s historical track record of achieving its guidance) |
| Implied PBR / PER |
Sensitivity: ¥7,520–¥7,961 at ±1% for the Cost of Equity, and ¥7,730–¥7,739 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 release 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 responsibility, after consulting professionals as necessary.
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| 0.98x / 12.1x |