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 | ¥705.8B | ¥685.6B | +2.9% |
| Operating Income | ¥38.6B | ¥39.6B | -2.6% |
| Ordinary Income | ¥54.0B | ¥62.3B | -13.2% |
| Net Income | ¥61.9B | ¥186.6B | -66.8% |
| ROE | 1.6% | 4.9% | - |
This quarterly financial result recorded higher revenue but lower profit at both the operating and ordinary income levels, while net income declined significantly due to the reversal of a large extraordinary gain recorded in the previous year. Revenue increased to ¥705.8B (+2.9% year on year), while Operating Income declined to ¥38.6B (-2.6%) and Ordinary Income fell to ¥54.0B (-13.2%). Net Income attributable to owners of the parent amounted to ¥60.8B (¥185.7B in the previous year, -67.3%); however, this was primarily attributable to the reversal of the previous year's recognition of a gain on the sale of investment securities (extraordinary gain of ¥193.6B), rather than a sudden change in business fundamentals. The background to the decline in Operating Income was a slight decrease in margins in both the core Logistics segment and the Real Estate segment.
【Revenue】The Logistics Business generated ¥613.5B (+2.6% year on year; 86.9% of revenue), while the Real Estate Business generated ¥92.1B (+4.8%; 13.1% of revenue), with both businesses securing revenue growth. In Logistics, warehouse storage fees, inland transportation fees, and port cargo-handling fees increased, while international freight-forwarding fees declined from ¥203.1B to ¥197.1B, indicating a change in the cargo mix handled. In Real Estate, increased rental income contributed to revenue growth.
【Profit and Loss】Operating Income was ¥38.6B (-2.6% year on year), and the Operating Margin narrowed to 5.47% from 5.78% in the previous year, a contraction of 0.31pt. By segment, the Logistics margin declined to 5.01% from 5.37% in the previous year (-0.37pt), while the Real Estate margin fell to 31.16% from 32.16% (-1.00pt). The decline in both segments confirms negative operating leverage, with Operating Income failing to keep pace with revenue growth. Ordinary Income was ¥54.0B (-13.2%), pressured by a decline in dividend income to ¥10.6B from ¥22.0B in the previous year. At the net income level, the previous year included extraordinary gains of ¥193.6B, including gains on the sale of investment securities, whereas extraordinary gains in the current period were limited to ¥35.4B, primarily from gains on the sale of fixed assets. As a result, Net Income attributable to owners of the parent was ¥60.8B (-67.3%). Overall, the Company recorded higher revenue but lower profit, with the decline reflecting a combination of a modest deterioration in core business margins and the temporary reversal of extraordinary gains recorded in the previous year.
The Logistics Business recorded revenue of ¥613.5B (+2.6% year on year), Operating Income of ¥30.7B (-4.2%), and a margin of 5.0% (5.4% in the previous year), indicating a decline in profitability despite higher revenue. The Real Estate Business reported revenue of ¥92.1B (+4.8%), Operating Income of ¥28.7B (+1.5%), and a margin of 31.2% (32.2% in the previous year). Although it maintained a more profitable business structure than Logistics, its margin also contracted slightly year on year. Corporate expenses (inter-segment adjustments) were ¥△20.7B, broadly in line with the previous year, and consolidated Operating Income of ¥38.6B represents the combined Operating Income of ¥59.4B from Logistics and Real Estate less corporate expenses. Real Estate accounted for approximately 48% of combined Operating Income from Logistics and Real Estate, highlighting its significant contribution to profit relative to its 13% share of revenue.
【Profitability】The Operating Margin declined slightly to 5.5% from 5.8% in the previous year, while the Net Profit Margin attributable to owners of the parent contracted significantly to 8.6% from 27.1% due to the absence of the previous year's extraordinary gains. 【Cash Flow Quality】Operating Cash Flow (OCF) was ¥△129.2B, significantly below Net Income attributable to owners of the parent of ¥60.8B, indicating that current-period earnings lacked cash backing. 【Investment Efficiency】ROE was 1.6%, down from the level in the same quarter of the previous year (approximately 5% based on the same calculation method), indicating that capital efficiency remained low. Basic EPS was ¥17.75 (¥51.80 in the previous year, -65.7%), directly reflecting the decline in net income. 【Financial Soundness】Equity attributable to owners of the parent was ¥3797.1B, while total assets were ¥6486.5B, resulting in an Equity Ratio of 58.5% (58.6% in the previous year). Although broadly unchanged, this remains a high level. Meanwhile, short-term borrowings increased sharply to ¥734.8B (+85.1% year on year), while long-term borrowings declined to ¥77.7B (-50.0%), indicating a shift toward shorter-term interest-bearing debt.
Operating Cash Flow (OCF) was ¥△129.2B, compared with ¥△79.2B in the previous year, reflecting a wider deficit, while Free Cash Flow (FCF) was also negative at ¥△121.0B. The background included ¥144.0B in income taxes paid, as well as working capital factors such as funds tied up due to an increase in real estate held for sale (approximately ¥△53.4B) and a ¥△33.3B decrease in trade payables. Although the earning power represented by Operating Income itself was not materially impaired, the insufficient conversion into cash persisted. Investing Cash Flow was positive at ¥+8.2B, as proceeds from the sale of fixed assets (¥+55.5B) exceeded capital expenditures (¥△52.5B). Financing Cash Flow was ¥+136.4B, indicating net financing inflows. The Company secured funds for shareholder returns, including dividend payments of ¥68.9B and share repurchases of ¥48.0B, through increased short-term borrowings. The Company is therefore using borrowings to cover the FCF deficit, and the fact that shareholder returns cannot be funded solely from internal funds is an important point to monitor in assessing liquidity.
The composition of current-period earnings includes both recurring and non-recurring factors, requiring particular caution when evaluating earnings quality at the net income level. Of the ¥19.3B in non-operating income, dividend income accounted for ¥10.6B. This represents recurring income from investment securities held by the Company. In contrast, the same period of the previous year included extraordinary gains of ¥193.6B, including gains on the sale of investment securities, while extraordinary gains in the current period, primarily gains on the sale of fixed assets, declined sharply to ¥35.4B. Consequently, the relationship between Ordinary Income (¥54.0B) and Net Income attributable to owners of the parent (¥60.8B) changed significantly from the previous year. In the previous year, extraordinary gains caused net income to substantially exceed Ordinary Income, whereas the difference narrowed in the current period. From an accrual perspective, Operating Cash Flow (¥△129.2B) was significantly below Net Income attributable to owners of the parent (¥60.8B). The delayed conversion of earnings into cash due to tax payments and working capital, including the accumulation of real estate held for sale, should be noted when assessing earnings quality. Comprehensive Income was ¥103.8B, exceeding Net Income of ¥60.8B, with valuation-related items such as valuation difference on available-for-sale securities of ¥+28.2B and foreign currency translation adjustments of ¥+12.5B contributing to the result.
Against the full-year Company forecasts of Revenue of ¥2800.0B, Operating Income of ¥175.0B, and Ordinary Income of ¥216.0B, Q1 progress was 25.2% for Revenue and 25.0% for Ordinary Income, broadly in line with the simple progress benchmark of 25%, while Operating Income progress was slightly behind at 22.1%. Progress toward the full-year forecast of ¥230.0B for Net Income attributable to owners of the parent was 26.4%, exceeding progress through the Ordinary Income level. The delay in Operating Income progress reflects margin declines in both the Logistics and Real Estate segments, and improving profitability toward the second half of the fiscal year will be a challenge in achieving the full-year plan. Neither the earnings forecast nor the dividend forecast had been revised as of the end of this quarter.
The full-year dividend forecast is ¥44.00 per share, implying a Payout Ratio of approximately 64.8% based on the Company's EPS forecast of ¥67.91. During Q1, the Company paid dividends of ¥68.9B and conducted share repurchases of ¥48.0B, bringing total shareholder returns on a cash-outflow basis to ¥116.9B. Meanwhile, current-period FCF was ¥△121.0B, indicating that shareholder returns could not be funded by cash generated from operating activities and were supplemented through Financing Cash Flow, namely increased short-term borrowings. Although retained earnings, the source of dividend funding, remain substantial at ¥2943.0B, the sustainability of shareholder returns will depend on the recovery of OCF going forward.
Decline in Cash Conversion: Operating Cash Flow (OCF) was ¥△129.2B, significantly below Net Income attributable to owners of the parent of ¥60.8B. Income tax payments of ¥144.0B and increased real estate held for sale were the primary factors, and the conversion of earnings into cash requires continued monitoring.
Shortening of Interest-Bearing Debt Maturities: Short-term borrowings increased to ¥734.8B (+85.1% year on year), while long-term borrowings declined to ¥77.7B (-50.0%). Short-term liabilities have become more significant relative to cash and deposits of ¥659.0B, indicating a change in the financing structure.
Declining Segment Profitability: The Operating Margin declined year on year in both Logistics, to 5.0% from 5.4%, and Real Estate, to 31.2% from 32.2%. If margins in both businesses continue to decline, this could affect achievement of the full-year Operating Income plan, which currently has a progress rate of 22.1%.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.5% | 7.1% (2.3%–8.5%) | -1.6pt |
| Net Profit Margin | 8.8% | 4.9% (0.7%–5.9%) | +3.8pt |
The Operating Margin is below the industry median, while the Net Profit Margin is above the industry median, partly due to the impact of extraordinary gains and other factors.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (year on year) | 2.9% | 4.1% (3.3%–11.2%) | -1.2pt |
The Revenue Growth Rate is slightly below the industry median, indicating relatively modest revenue growth within the industry.
※Source: Compiled by the Company
Despite higher revenue, the Operating Margin declined to 5.47% from 5.78% in the previous year, with margins contracting in both the Logistics and Real Estate segments. This is an important point when evaluating the quality of the financial results from the perspective of operating leverage.
The significant decline in net income (-67.3%) was primarily caused by the reversal of the previous year's gain on the sale of investment securities, a non-recurring factor. The substantially different rate of decline compared with the decrease in Ordinary Income (-13.2%) highlights the need to distinguish between the two profit measures.
Operating Cash Flow (OCF) was ¥△129.2B, significantly below Net Income attributable to owners of the parent, while shareholder returns consisting of dividends and share repurchases totaling ¥116.9B were supplemented with borrowings. The pace of OCF recovery will be an important factor in assessing the sustainability of shareholder returns.
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 share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥1,033 |
| base | ¥1,044 |
| bull | ¥1,055 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥1,129 |
| Adjusted Forecast EPS | ¥72.0 |
| Cost of Equity r | 9.15% (10-year government bond 2.65% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 64.8% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the track record of guidance achievement in the same industry) |
| implied PBR / PER |
Sensitivity: ¥1,016–¥1,073 at ±1% for the cost of equity, and ¥1,041–¥1,045 at ±0.1 for ω.
Notes:
(Model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value is not a forecast or guarantee of 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 discretion and responsibility, and after consulting a professional as necessary.
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| 0.92x / 14.5x |