| Metric | Current Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥800.3B | ¥751.1B | +6.5% |
| Operating Income / Operating Profit | ¥42.9B | ¥35.1B | +22.0% |
| Ordinary Income | ¥58.2B | ¥49.8B | +17.0% |
| Net Income / Net Profit | ¥65.0B | ¥25.9B | +150.9% |
| ROE | 6.0% | 2.8% | - |
For the fiscal year ended March 2026, Revenue / Net Sales amounted to ¥800.3B (YoY +¥49.1B +6.5%), Operating Income was ¥42.9B (YoY +¥7.7B +22.0%), Ordinary Income was ¥58.2B (YoY +¥8.4B +17.0%), and Net Income attributable to owners of the parent was ¥67.3B (YoY +¥39.3B +140.1%). The core Logistics Business grew steadily (+6.9%), and at the operating stage improvements in gross margin and restraint on selling, general and administrative expenses led Operating Margin to rise to 5.4% (prior year 4.7%) (+0.7pt). At the ordinary income stage, an increase in dividend income received of ¥24.7B (prior year ¥21.3B) contributed, and at extraordinary level gains on sales of investment securities of ¥24.2B and gains on sale of fixed assets of ¥17.1B were recorded, leading to a large YoY increase in final profit of +150.9%. Operating Cash Flow (OCF) secured ¥89.8B (YoY -30.9%); after capital expenditures of ¥75.1B, Free Cash Flow was ¥56.1B and dividend funding is well covered.
[Revenue] Revenue was ¥800.3B (+6.5%), with the Logistics Business as the primary driver at ¥741.7B (+6.9%). Logistics (warehouse storage & operations, domestic land transport, international cargo handling) performed steadily, with price revisions and higher utilization proving effective. The Real Estate Business recorded ¥58.6B (+2.0%), with office building leasing in the Tokyo and Yokohama areas maintaining stable occupancy. Segment composition was Logistics 92.7%, Real Estate 7.3%, indicating continued high concentration in Logistics. Cost of goods sold totaled ¥695.1B, resulting in Gross Profit of ¥105.1B (Gross Margin 13.1%), an improvement of +0.4pt from prior year ¥95.6B (Gross Margin 12.7%).
[Profitability] Operating Income was ¥42.9B (+22.0%), with Operating Margin improving to 5.4% (prior year 4.7%) (+0.7pt). SG&A totaled ¥62.2B (7.8% of sales), increasing only +2.8% from prior year ¥60.5B, below sales growth of +6.5%, demonstrating operating leverage. Goodwill amortization was ¥5.0B (prior year ¥5.1B) largely flat, and depreciation included in SG&A was ¥4.3B (prior year ¥4.2B), a slight increase. Non-operating income totaled ¥28.1B, primarily dividend income received of ¥24.7B, while non-operating expenses were ¥12.7B, mainly interest expenses of ¥10.8B (prior year ¥9.1B). Ordinary Income was ¥58.2B (+17.0%); increased dividend income offset higher interest burden, raising Ordinary Income Margin to 7.3% (prior year 6.6%) (+0.7pt. Extraordinary income amounted to ¥41.3B (gains on sale of investment securities ¥24.2B, gains on sale of fixed assets ¥17.1B), and extraordinary losses were limited to ¥1.4B (loss on disposal of fixed assets, etc.). Profit before tax was ¥98.2B (+129.2%); after corporate taxes of ¥30.6B (effective tax rate 31.1%) and minority interest of ¥0.3B, Net Income attributable to owners of the parent was ¥67.3B (+140.1%). Extraordinary income of ¥41.3B, a temporary factor, accounted for about 38.1% of Net Income, so caution is required regarding a potential reversal next fiscal year. Conclusion: revenue and profit both increased.
The Logistics Business had Revenue ¥741.7B (+6.9%) and Operating Income ¥53.4B (+17.0%), with segment margin improving to 7.2% (prior year 6.6%) (+0.6pt). Price corrections and utilization improvements in warehouse storage & operations and domestic land transport contributed to margin expansion. The Real Estate Business had Revenue ¥58.6B (+2.0%) and Operating Income ¥20.3B (+9.9%), with segment margin rising substantially to 34.6% (prior year 29.6%) (+5.0pt). Office leasing in Tokyo and Yokohama maintained stable occupancy and preserved a high-margin structure. Total segment profits of ¥73.7B less corporate expenses of ¥29.8B (prior year ¥28.9B) and intersegment eliminations of ¥0.8B reconcile to consolidated Operating Income of ¥42.9B. High profitability in Real Estate continues to lift company margins.
[Profitability] Operating Margin improved to 5.4% from 4.7% (+0.7pt) driven by operating leverage. Gross Profit Margin rose to 13.1% (prior year 12.7%) (+0.4pt), aided by Logistics price revisions and high occupancy in Real Estate. Ordinary Income Margin increased to 7.3% (prior year 6.6%) (+0.7pt), with higher dividend income offsetting increased interest expense. Net Income Margin expanded to 8.4% (prior year 3.7%) (+4.7pt), though much of the increase is due to extraordinary income; the sustainable performance measure is Ordinary Income Margin of 7.3%. ROE was 6.0% (prior year 3.0%), roughly doubling, but the main driver of Net Income growth was one-off gains, suggesting a sustainable level around 6%. [Cash Quality] Operating Cash Flow to Net Income ratio was 1.33x, indicating sound accrual quality. Simple EBITDA, calculated as OCF ¥89.8B plus depreciation ¥49.7B, is approximately ¥139.5B, yielding an Operating CF/EBITDA ratio of 0.97x, signifying robust cash generation. [Investment Efficiency] Total Asset Turnover was 0.342x, indicating low asset efficiency. Tangible Fixed Asset Turnover was 0.79x (Revenue ¥800.3B ÷ Tangible Fixed Assets ¥1,015.0B), reflecting the low turnover characteristic of real estate and warehouse assets. [Financial Soundness] Equity Ratio improved to 46.3% (prior year 44.6%) (+1.7pt), indicating a stable financial base. Current Ratio was 189.5% (Current Assets ¥419.8B ÷ Current Liabilities ¥221.6B), and Quick Ratio was 183.9%, indicating very high short-term payment capacity. Interest-bearing debt amounted to ¥558.6B (long-term borrowings ¥535.7B, corporate bonds ¥165.0B, short-term borrowings ¥22.9B, etc.), with Debt/Equity ratio of 51.7%. Cash and deposits increased to ¥277.5B (prior year ¥205.0B) (+¥72.5B), and cash cover of short-term liabilities is 12.1x, indicating ample liquidity.
Operating Cash Flow was ¥89.8B (prior year ¥130.1B, -30.9%). Starting from Profit before tax ¥98.2B and depreciation ¥49.7B, changes in working capital included increases in trade receivables of -¥12.2B and decreases in advances received of -¥12.1B as negative factors, while increases in trade payables +¥14.2B and decreases in inventories +¥12.3B offset these. Cash paid for corporate taxes was ¥15.4B; dividend income received ¥25.1B; interest paid ¥10.6B. OCF subtotal of ¥90.7B less corporate tax payments yields the reported OCF. Investing Cash Flow was -¥33.7B, with capital expenditures of ¥75.1B partially offset by proceeds from sale of marketable securities ¥26.2B and proceeds from sale of fixed assets ¥19.9B. Financing Cash Flow was +¥16.9B, with proceeds from long-term borrowings ¥93.6B exceeding long-term borrowing repayments ¥55.7B, dividend payments ¥14.3B, and share buybacks ¥2.2B. Free Cash Flow was ¥56.1B (OCF ¥89.8B + Investing CF -¥33.7B), covering dividends and share buybacks total ¥16.5B by 3.4x, indicating healthy internal funding generation. Cash and deposits rose from ¥205.0B at the beginning of the period to ¥277.5B at year-end (+¥72.5B), substantially strengthening liquidity.
Quality of earnings at the operating stage is supported by Logistics price revisions and utilization improvements and stable operations in Real Estate; Ordinary Income of ¥58.2B (Ordinary Income Margin 7.3%) is the core recurring earnings level. Of Non-operating income ¥28.1B, dividend income received ¥24.7B (3.1% of sales) accounts for the majority, reflecting a structure where dividend income from investment securities including cross-shareholdings supports the ordinary income stage. Extraordinary income of ¥41.3B (gains on sale of investment securities ¥24.2B, gains on sale of fixed assets ¥17.1B) is a one-off factor and comprises about 38.1% of Net Income ¥67.3B. The gap between Ordinary Income and Net Income is ¥9.1B, with one-off gains contributing materially. OCF ¥89.8B is 1.38x Net Income ¥65.0B, indicating good accrual quality. Comprehensive Income was ¥158.9B, consisting of Net Income ¥65.0B plus valuation difference on available-for-sale securities ¥89.2B, adjustments related to retirement benefits ¥2.3B, foreign currency translation adjustments -¥0.5B, and deferred hedge gains/losses ¥0.2B; unrealized gains on securities boosted equity. Assuming the absence of extraordinary income next fiscal year, the sustainability of earnings will hinge on the ordinary income level.
The full year (FY) forecast is Revenue ¥820.0B (+2.5%), Operating Income ¥41.0B (-4.4%), Ordinary Income ¥52.0B (-10.7%), Net Income attributable to owners of the parent ¥62.0B (-7.9%), EPS ¥214.71, and dividend ¥37. This fiscal year ended with Revenue ¥800.3B, Operating Income ¥42.9B, Ordinary Income ¥58.2B, Net Income ¥67.3B, with Operating Income and Net Income exceeding company guidance. Progress against the full year forecast is 97.6% for Revenue, 104.6% for Operating Income, 111.9% for Ordinary Income, and 108.5% for Net Income, indicating performance exceeded expectations from the operating stage onward. The company’s plan assumes decreases in Operating Income (-4.4%) and Ordinary Income (-10.7%), which appears to be a conservative view assuming the disappearance of extraordinary income of ¥41.3B this fiscal year. The Net Income forecast of ¥62.0B is close to this fiscal year’s Ordinary Income ¥58.2B and likely represents a baseline earnings plan excluding one-offs. The projected dividend of ¥37 is half of this year’s actual ¥70; an interim dividend of ¥29 has already been paid, and a year-end dividend of ¥8 is expected to total ¥37.
Annual dividend was ¥70 (interim ¥29, year-end ¥41), a substantial increase from prior year ¥15. Dividend payout ratio relative to EPS ¥232.33 is 30.1%, up from 15.5% in the prior year, but still within a conservative range. Total dividends amounted to ¥14.3B, which is 25.5% of Free Cash Flow ¥56.1B and 15.9% of Operating Cash Flow ¥89.8B, indicating ample capacity. Share buybacks of ¥2.2B were executed; total shareholder return (dividends plus buybacks) amounted to ¥16.5B, resulting in a Total Return Ratio of 24.5% (Total Return ¥16.5B ÷ Net Income ¥67.3B). Cash and deposits ¥277.5B equate to 19.4 years of dividend payments at current levels, indicating very high dividend sustainability. The dividend forecast for next fiscal year is ¥37, and this year’s increase is considered a temporary level reflecting extraordinary income; dividends are expected to revert to a level aligned with ordinary income in the following year.
Revenue concentration risk: The Logistics Business accounts for 92.7% of Revenue, so fluctuations in warehouse supply-demand or downward pressure on transport pricing could materially impact consolidated results. Given a low Gross Margin of 13.1%, profit sensitivity to price or volume declines is high, and operating leverage could reverse in an economic downturn.
Financial leverage and interest burden risk: With interest-bearing debt of ¥558.6B and simple EBITDA of approximately ¥139.5B, Debt/EBITDA is about 4.0x, a relatively high level. Interest expense increased +18.7% to ¥10.8B (prior year ¥9.1B); in a rising interest rate environment interest coverage (EBIT ¥42.9B ÷ Interest expense ¥10.8B = 3.97x) could deteriorate and pressure ordinary income. Attention should be paid to refinancing timing for long-term borrowings ¥535.7B and corporate bonds ¥165.0B.
Dependence on one-off income and risk of profit reversal next fiscal year: Of this fiscal year’s Net Income ¥67.3B, extraordinary income ¥41.3B (38.1%) is one-off. The company’s plan for next fiscal year anticipates Net Income ¥62.0B, a -7.9% decline. Gains on sale of investment securities and fixed assets are unlikely to recur regularly; the ordinary income level (¥58.2B) should be considered the company’s recurring earning power, so future profit growth will depend on increasing operating income. Dividend income received ¥24.7B is also subject to market conditions and changes in investee dividend policies.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.4% | 6.3% (3.7%–8.5%) | -0.9pt |
| Net Income Margin | 8.1% | 2.7% (1.6%–4.7%) | +5.4pt |
Operating Margin is -0.9pt below the industry median, but Net Income Margin exceeds the median by +5.4pt due to dividend income and extraordinary gains.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 6.5% | 5.0% (-0.4%–9.4%) | +1.5pt |
Revenue growth exceeds the industry median by +1.5pt, reflecting successful capture of logistics demand and price revisions.
※Source: Company compilation
Operating Margin improved by +0.7pt this fiscal year, indicating progress in operating efficiency. Price revisions and utilization improvements in Logistics and stable, high-margin Real Estate contributed, and operating leverage was effective—this is a structurally positive factor. If SG&A growth continues to lag sales growth, there is room for medium-term margin improvement.
Extraordinary income ¥41.3B, which accounts for 38.1% of Net Income, is a temporary factor; the company’s plan for next fiscal year is a conservative forecast based on ordinary income as the baseline. OCF ¥89.8B is 1.38x Net Income and of high quality, and Free Cash Flow ¥56.1B sufficiently secures dividend funding; this supports dividend sustainability and financial stability. Going forward, growth in operating income and stable dividend income are key to maintaining profit levels.
Although financial leverage (interest-bearing debt ¥558.6B and Debt/EBITDA ~4.0x) is somewhat high, substantial cash and deposits ¥277.5B and stable OCF mitigate short-term liquidity risk. Interest coverage is 3.97x (EBIT basis), indicating current payment capacity, but interest rate increases should be monitored for impact on ordinary income. Medium-term, capital expenditures ¥75.1B coming into operation and improvements in capital efficiency will be key to sustainable growth.
This report is a financial analysis document automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed financial statements. Investment decisions are your own responsibility—please consult a professional advisor as needed before making any investment decisions.