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 | ¥7309.9B | ¥4327.0B | +68.9% |
| Operating Income | ¥385.2B | ¥370.8B | +3.9% |
| Ordinary Income | ¥521.5B | ¥522.3B | -0.1% |
| Net Income | ¥613.3B | ¥544.5B | +12.6% |
| ROE | 2.0% | 1.9% | - |
While the expansion of the consolidation period resulting from changes to the fiscal year-end of consolidated subsidiaries significantly boosted revenue, margins at the operating and ordinary income levels contracted due to higher costs and increased interest expenses. Net income increased, supported by extraordinary gains and foreign exchange gains. Revenue was ¥7,309.9B (up +68.9% YoY), operating income was ¥385.2B (up +3.9%), ordinary income was ¥521.5B (down -0.1%), and net income attributable to owners of the parent was ¥610.6B (up +15.6%). The operating margin contracted to 5.3% (8.6% in the previous year), highlighting that profit growth has not kept pace with the increase in revenue.
【Revenue】Revenue increased significantly to ¥7,309.9B, up +68.9% YoY. The primary drivers of the increase were broad-based growth in major segments, including Dry Bulk (+65.3%), Energy (+87.9%), and Automotive Transportation, Ports and Logistics (+38.6%), as well as the effective expansion of the consolidation period—incorporating approximately six additional months—following changes to the fiscal year-end of 384 consolidated subsidiaries.
【Profit and Loss】Operating income increased only slightly by +3.9% YoY to ¥385.2B, while ordinary income was essentially flat at ¥521.5B, down -0.1%. The gross margin contracted to 14.7% (18.7% in the previous year), and the operating margin declined to 5.3% (8.6% in the previous year), primarily due to higher costs, increased chartering and personnel expenses, and the widening loss in the containership business (segment loss of ¥△27.7B). On the other hand, extraordinary gains of ¥170.6B, including foreign exchange gains of ¥118.0B, equity-method investment gains of ¥139.6B, and gains on sales of fixed assets of ¥134.0B, boosted net income. Net income was ¥613.3B (up +12.6% YoY), or ¥610.6B attributable to owners of the parent (up +15.6%). Although the Company achieved higher revenue and net income, growth at the operating and ordinary income levels was limited, and the increase in net income was highly dependent on non-recurring items.
Energy Business made the largest contribution to segment profit at ¥150.6B, although this represented a decline of ¥-69.6B YoY. Dry Bulk Business improved significantly to ¥107.2B from ¥-34.5B in the previous year, benefiting from a recovery in resource and bulk-market conditions. Automotive Transportation, Ports and Logistics Business recorded a substantial decline in profit to ¥17.4B (down ¥-216.6B YoY), while the containership business saw its loss widen to ¥-27.7B (compared with ¥-12.6B in the previous year). Chemical Logistics Business secured higher profit of ¥84.8B (up ¥+14.0B YoY). Overall, Energy and Dry Bulk provided support, while deteriorating profitability in the containership and Automotive Transportation, Ports and Logistics businesses weighed on the overall margin.
【Profitability】The operating margin declined to 5.3% from 8.6% in the previous year, while the net profit margin contracted to 8.4% from 12.6%. ROE declined to 2.0% from the previous year, primarily due to deterioration in the gross margin (14.7%, compared with 18.7% in the previous year). 【Cash Quality】Extraordinary gains of ¥170.6B (including gains on sales of fixed assets of ¥134.0B), foreign exchange gains of ¥118.0B, and equity-method investment gains of ¥139.6B supported net income, indicating a high degree of dependence on non-recurring and non-operating factors. 【Investment Efficiency】Total asset turnover remained low, reflecting the asset-intensive nature of the business. 【Financial Soundness】The equity ratio was essentially flat at 48.9% (48.2% in the previous year). Although interest-bearing debt increased, primarily due to long-term borrowings of ¥1兆8,395.1B, commercial paper outstanding declined substantially from ¥1,212B in the previous year, reducing dependence on short-term funding.
This analysis does not rely on detailed disclosures in the statement of cash flows; instead, it derives the flow of funds from balance sheet trends. Inventories increased to ¥822.3B (¥622.6B in the previous year, +30.6%), suggesting that working capital was tied up due to fuel inventory and price increases. Property, plant and equipment increased to ¥2兆9,091.8B (¥2兆7,865.2B in the previous year), indicating continued investment centered on vessels. In terms of funding, long-term borrowings increased from ¥1,724.3B to ¥1,839.5B, while commercial paper declined substantially from ¥1,212.0B to ¥200.0B and short-term bonds from ¥504.0B to ¥4.0B, confirming a shift in the funding mix from short-term to long-term financing. Interest expense surged to ¥252.3B (¥91.8B in the previous year), and the resulting increase in interest costs is a point to monitor from a funding-efficiency perspective.
Current-period earnings were relatively more dependent on non-recurring and non-operating factors than on recurring business revenue. Extraordinary gains of ¥170.6B (including gains on sales of fixed assets of ¥134.0B) accounted for approximately 27.8% of net income of ¥613.3B, suggesting limited recurrence from the next fiscal year onward. Non-operating income was substantial at ¥418.8B (5.7% of revenue), consisting of foreign exchange gains of ¥118.0B, equity-method investment gains of ¥139.6B, interest income of ¥92.7B, and dividend income of ¥37.4B. Meanwhile, interest expense surged to ¥252.3B, representing a persistent source of pressure in an environment of rising interest rates. The gap between ordinary income of ¥521.5B and net income of ¥613.3B resulted from the accumulation of extraordinary gains and a decline in the effective tax rate: income taxes and other taxes were ¥67.4B against pretax income of ¥680.7B, implying an effective tax rate of approximately 9.9%. It is important to note that underlying recurring earnings power was essentially flat compared with the previous year.
Progress in Q1 against the full-year forecasts of revenue of ¥2兆2,300B, operating income of ¥1,350B, and ordinary income of ¥2,250B was 32.8%, 28.5%, and 23.2%, respectively. Revenue is progressing at a pace above the standard quarterly progress rate of 25%, largely due to the impact of the expanded consolidation period. Ordinary income, however, is progressing somewhat more slowly, affected by higher interest costs and deteriorating profitability in the containership business. There were no revisions to either the earnings forecast or the dividend forecast, and the Company maintained its current plan.
The Company forecasts an annual dividend of ¥205 (¥85 in the previous year). Based on the average number of shares outstanding during the period of approximately 3億4,361万 shares, a simple calculation indicates total annual dividends of approximately ¥704B. The payout ratio against forecast full-year net income attributable to owners of the parent of ¥2,400B is approximately 29%, remaining at a manageable level. No data on share repurchases was identified, and shareholder returns remain centered on dividends.
Increase in interest costs: Interest expense surged to ¥252.3B (¥91.8B in the previous year), while long-term borrowings expanded to ¥1兆8,395.1B. Higher financial costs in an environment of rising interest rates are directly contributing to the stagnation of ordinary income growth.
Deterioration in containership business profitability: The segment loss widened to ¥-27.7B (¥-12.6B in the previous year), and market fluctuations are weighing on Company-wide earnings.
Dependence on temporary factors supporting profit: Extraordinary gains of ¥170.6B (including gains on sales of fixed assets of ¥134.0B) and foreign exchange gains of ¥118.0B boosted net income. Excluding these non-recurring items, underlying earnings power has not improved significantly from the previous year.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.3% | 7.1% (4.3%–8.6%) | -1.8pt |
| Net Profit Margin | 8.4% | 5.9% (2.8%–8.5%) | +2.5pt |
The operating margin is below the industry median, while the net profit margin exceeds the industry median due to contributions from extraordinary gains and foreign exchange gains.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 68.9% | 3.3% (0.2%–7.6%) | +65.6pt |
The revenue growth rate substantially exceeds the industry median, representing notable growth within the industry, including the impact of the expanded consolidation period.
※Source: Compiled by the Company
The increase in operating and ordinary income was small relative to the scale of revenue growth, and both the gross margin and operating margin contracted significantly from the previous year. The earnings data indicate that the change in underlying earnings power has not been as substantial as the pace of revenue growth.
The increase in net income was supported by non-recurring and non-operating items, including extraordinary gains such as gains on sales of fixed assets, foreign exchange gains, and equity-method investment gains. Excluding these items, the increase in profit was limited.
While the Energy and Dry Bulk businesses drove profit among the segments, the widening loss in the containership business and the decline in profit in the Automotive Transportation, Ports and Logistics Business weighed on the overall margin, resulting in greater dispersion in profitability across the business portfolio.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit five-year fade). It is not a forecast of the market stock price or a recommendation to take any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear | ¥8,125 |
| base | ¥8,211 |
| bull | ¥8,304 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥8,835 |
| Adjusted Forecast EPS | ¥555.0 |
| Cost of Equity r | 8.77% (10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 0.00%) |
| Residual Income Persistence Factor ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 29.4% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the peer-industry track record of achieving guidance) |
| Implied PBR / PER |
Sensitivity: ¥7,980–¥8,453 at ±1% in the cost of equity, and ¥8,189–¥8,226 at ±0.1 in ω.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-07 / This value is not a forecast or guarantee of future stock prices)
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 disclosed earnings data. Investment decisions should be made at your own responsibility, and you should consult a professional adviser where necessary.
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| 0.93x / 14.8x |