Chuo Warehouse Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥1.13B
• Net Income: ¥729M
• EPS: ¥52.77

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

For FY2026 Q2 (cumulative) under JGAAP on a consolidated basis, Chuo Warehouse (9319) reported operating income of ¥1,126 million, down 6.7% YoY, while net income rose 35.5% YoY to ¥971 million, indicating material support from non-operating and/or extraordinary items despite softer core operations. Ordinary income of ¥1,336 million exceeded operating income by ¥210 million, suggesting net non-operating gains (after covering ¥41 million of interest expense). Reconciling net income and reported tax implies additional extraordinary gains of roughly ¥87 million pre-tax in the period. Using reported income tax of ¥452 million and implied pre-tax profit of about ¥1,423 million, the effective tax rate is approximately 31.8%. Revenue and gross profit were not disclosed in XBRL (zeros are placeholders), limiting margin analysis at the top line level. The balance sheet shows total assets of ¥61.221 billion and equity of ¥48.088 billion, implying an equity ratio around 78.6% (versus a reported 0.0% placeholder) and financial leverage (A/E) of ~1.27x, indicating a very conservative capital structure. Liquidity is strong with a current ratio of 179% and working capital of ¥6.01 billion. Interest coverage is robust at ~27.3x (EBIT/interest), reflecting low financial risk. Operating cash flow was solid at ¥1,947 million, approximately 2.0x net income, which supports earnings quality; however, investing cash flow was not disclosed and free cash flow cannot be reliably assessed from the provided data. EBITDA is approximately ¥1,996 million (OI plus D&A), but EBITDA margin cannot be computed without revenue. Dividend information (DPS, payout) is not disclosed for the period, so dividend sustainability must be assessed qualitatively against cash generation and balance sheet strength. Overall, the company appears financially sound with resilient cash generation, but core operating momentum softened YoY and visibility on revenue, capex, and free cash flow is limited due to non-disclosure. Key monitoring points include the trajectory of operating income into H2, non-operating contribution sustainability, labor and energy cost trends, and any updates to dividend policy.

Profitability Analysis

ROE_decomposition: A traditional DuPont breakdown is not meaningful because revenue was not disclosed (net margin and asset turnover default to zero in the provided metrics). Using a rough run-rate: annualizing net income (¥971m x 2 ≈ ¥1,942m) over period-end equity (¥48,088m) yields an indicative ROE of ~4.0% (non-GAAP and simplified, ignores average equity). Financial leverage is low at ~1.27x (Assets/Equity ≈ 61,221/48,088). The positive spread between ordinary income and operating income indicates net non-operating gains supporting ROE. margin_quality: Operating income declined 6.7% YoY, suggesting modest compression at the core level; absent revenue and gross profit, we cannot quantify gross or operating margins. Net income growth (+35.5% YoY) was driven by non-operating/extraordinary items and a normalizing tax rate (~31.8%), rather than core margin expansion. EBITDA of ~¥1,996m reflects substantial depreciation (¥870m), consistent with asset-intensive warehousing. operating_leverage: With operating income down YoY and revenue undisclosed, quantified operating leverage is unavailable. Qualitatively, fixed-cost intensity (depreciation, labor, facility costs) implies leverage to volume and tariff/fee revisions; the YoY decline in OI points to either lower volumes/pricing or higher fixed cost absorption in the period.

Growth Assessment

revenue_sustainability: Revenue is not disclosed; hence, we cannot assess organic growth, pricing, or mix. The negative YoY trend in operating income hints at pressure on core activity, potentially from softer volumes, cost inflation, or mix. profit_quality: Ordinary income exceeding operating income by ~¥210m and an implied extraordinary gain of ~¥87m pre-tax suggest that bottom-line strength partially relies on non-operating/one-off items. OCF/NI of ~2.0x supports underlying earnings quality, but the lack of disclosed capex/investing CF prevents confirmation of sustainable free cash generation. outlook: Into H2, key drivers will be warehouse utilization, 3PL volumes, contract renewals/tariff adjustments, and cost control (labor, utilities). Given strong balance sheet and cash generation, the company has capacity to pursue incremental growth or efficiency investments, but sustaining net income growth without non-operating support will likely require stabilization or improvement in operating income.

Financial Health

liquidity: Current assets ¥13,595m vs. current liabilities ¥7,584m; current ratio ~179%, quick ratio ~179% (no inventories reported). Working capital ~¥6,010m indicates ample near-term liquidity. solvency: Total liabilities ¥12,851m vs. equity ¥48,088m; debt-to-equity ~0.27x and equity ratio ~78.6% (calculated). Interest coverage ~27.3x underscores low refinancing risk and strong capacity to service debt. capital_structure: The company is equity-rich with modest leverage (A/E ~1.27x). This conservative structure affords resilience against cyclical downturns and flexibility for capex, though it may temper ROE absent higher asset turnover or margin expansion.

Cash Flow Quality

earnings_quality: Operating cash flow of ¥1,947m is roughly 2.0x net income (¥971m), indicating strong cash conversion and limited accrual build for the period. Depreciation (¥870m) is significant, consistent with asset intensity. FCF_analysis: Investing cash flow was not disclosed; therefore, free cash flow cannot be reliably computed. The reported FCF value of zero is a placeholder and should not be interpreted as actual FCF. working_capital: With a healthy current ratio and positive OCF, working capital management appears supportive; however, detailed drivers (receivables, payables, and any inventory components) are not disclosed, limiting granularity.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are not disclosed for the period (zeros are placeholders). Using reported figures, a payout analysis cannot be concluded. FCF_coverage: Given OCF comfortably exceeding net income, internal funding capacity appears sound, but lack of investing CF disclosure prevents assessment of FCF coverage of dividends. policy_outlook: Balance sheet strength (equity ratio ~78.6%, low leverage) and robust interest coverage provide flexibility for distributions if the company elects to do so. Any dividend trajectory will depend on visibility into H2 operating income, capex plans, and non-operating income normalization.

Risk Assessment

Business Risks:

• Exposure to volume cyclicality in warehousing and 3PL activity
• Cost inflation (labor, utilities) affecting fixed-cost absorption and margins
• Pricing power and contract renewal risk with key customers
• Potential normalization of non-operating and extraordinary gains that boosted NI
• Execution risk in capacity expansion, automation, or network optimization

Financial Risks:

• Limited visibility on capex and investing cash flows complicates FCF assessment
• Potential working capital swings with customer activity could affect OCF
• Interest rate risk is modest but present; finance costs currently low (interest expense ¥41m)

Key Concerns:

• Core operating income decline (-6.7% YoY) despite strong net income
• Revenue non-disclosure prevents margin and growth diagnostics
• Reliance on non-operating/extraordinary items to sustain YoY earnings growth

Investment Implications

Key Takeaways:

• Core operating performance softened YoY; net income growth was supported by non-operating and extraordinary items
• Financial position is strong with low leverage and ample liquidity
• Cash conversion is robust (OCF/NI ~2.0x), but FCF cannot be assessed due to missing investing CF
• Visibility into revenue, capex, and dividend policy is limited in current disclosures

Metrics to Watch:

• Revenue, gross profit and operating margin once disclosed
• Warehouse utilization rates, 3PL volumes, and pricing/contract renewals
• Operating income trajectory in H2 and composition of non-operating/extraordinary gains
• Capex and investing cash flows to derive FCF and dividend capacity
• OCF/NI ratio sustainability and working capital movements
• Interest coverage and leverage levels amid potential rate changes

Relative Positioning: Within Japan’s warehousing/logistics peers, Chuo Warehouse exhibits a conservative balance sheet and strong interest coverage, suggesting below-average financial risk; however, current-period operating softness and limited disclosure on revenue and capex constrain comparative profitability and growth 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