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 Last Year | YoY |
|---|---|---|---|
| Revenue | ¥199.1B | ¥204.6B | -2.6% |
| Operating Income | ¥9.8B | ¥9.8B | +0.3% |
| Ordinary Income | ¥10.7B | ¥10.1B | +6.6% |
| Net Income | ¥40.3B | ¥6.3B | +537.0% |
| ROE | 3.8% | 0.6% | - |
Despite the decline in revenue, operating income and ordinary income both increased, while net income rose sharply year on year due to the recognition of extraordinary income, primarily gains on the sale of investment securities. Meanwhile, operating cash flow contracted significantly from the previous year. Revenue was ¥199.1B (-2.6% YoY), operating income was ¥9.8B (+0.3%), ordinary income was ¥10.7B (+6.6%), and net income attributable to owners of the parent was ¥40.1B (¥6.2B in the previous year, +550.5%). The primary driver of the sharp increase in net income was the recognition of ¥50.6B in extraordinary income, including ¥50.1B in gains on the sale of investment securities. The operating margin was 4.9% (4.8% in the previous year), indicating that improvement in the core business remained modest.
【Revenue】Revenue was ¥199.1B, a 2.6% year-on-year decline. The primary factor was the contraction in revenue from the Logistics Business, which accounts for 92.6% of total revenue, to ¥184.4B (-2.9%). Revenue from the Real Estate Business increased slightly to ¥14.7B (+0.8%), providing support as a high-margin business.
【Profit and Loss】Operating income was ¥9.8B, essentially flat at +0.3% year on year. Operating income in the Logistics Business increased to ¥13.4B (+5.8%), with the margin improving to 7.3%, as higher profitability offset the revenue decline. The Real Estate Business maintained a high operating income of ¥4.97B (+1.4%) and a margin of 33.7%. Ordinary income was ¥10.7B (+6.6%), supported by an increase in non-operating income, including ¥3.3B in dividend income, and a decrease in non-operating expenses. Net income surged to ¥40.1B (+550.5%) following the recognition of ¥50.6B in extraordinary income, including ¥50.1B in gains on the sale of investment securities. Overall, the results can be characterized as a decline in revenue accompanied by an increase in profit.
The Logistics Business generated revenue of ¥184.4B (-2.9%), operating income of ¥13.4B (+5.8%), and a margin of 7.3% (improving from approximately 6.7% in the previous year), demonstrating higher profitability despite the revenue decline. The Real Estate Business generated revenue of ¥14.7B (+0.8%) and operating income of ¥4.97B (+1.4%), maintaining a high margin of 33.7% and serving as a stable source of earnings despite its smaller scale. Adjustments for company-wide expenses and other items amounted to negative ¥8.55B, increasing from negative ¥7.75B in the previous year, resulting in the difference between total segment profit of ¥18.39B and consolidated operating income of ¥9.84B.
【Profitability】The operating margin was 4.9%, a slight improvement from 4.8% in the previous year, while the ordinary income margin increased to 5.4% from 4.9%. The net margin, however, surged to 20.1% from 3.0% in the previous year, largely due to the temporary boost from extraordinary income.【Cash Flow Quality】Operating cash flow was limited to ¥1.3B, and its ratio to net income of ¥40.1B was low at 0.03x, suggesting that the conversion of earnings into cash is lagging.【Investment Efficiency】ROE was 3.8% (actual result for the quarter), and the low total asset turnover relative to the high net margin is constraining capital efficiency.【Financial Soundness】The equity ratio was 46.3%, broadly unchanged and stable from the previous year. Although current assets of ¥387.9B compared with current liabilities of ¥213.9B indicate sufficient short-term liquidity, fixed liabilities were substantial at ¥1002.5B, including ¥527.3B in long-term borrowings and ¥165.0B in bonds, reflecting a capital-intensive business structure.
Operating cash flow was ¥1.3B, a significant 80.2% contraction from ¥6.7B in the previous year, creating a large gap with net income of ¥40.1B. Although operating cash flow before changes in working capital totaled ¥20.0B, payments of ¥19.2B for corporate income taxes and other taxes, as well as a ¥19.5B decrease in trade payables, compressed final operating cash flow to ¥1.3B. Investing cash flow was negative ¥24.9B, including ¥15.9B in capital expenditures, while financing cash flow was negative ¥29.3B, including ¥3.8B in share repurchases and debt repayments. Free cash flow (operating cash flow + investing cash flow) was negative ¥23.6B. As a result, cash and cash equivalents decreased by ¥52.5B from the end of the previous fiscal year, and the company is currently funding investment and financing activities with cash on hand of ¥258.4B.
Current-period earnings comprise both recurring earnings improvements and temporary extraordinary income, requiring caution from an earnings-quality perspective. Of the ¥50.6B in extraordinary income, ¥50.1B consisted of gains on the sale of investment securities, meaning that temporary factors accounted for the majority of net income of ¥40.1B. Meanwhile, comprehensive income was negative ¥21.3B, moving substantially in a different direction from net income. The primary reason was a ¥62.3B deterioration in valuation differences on other securities, indicating that changes in the market value of held securities are weighing on shareholders’ equity. Non-operating income was centered on ¥3.3B in dividend income and therefore had a strongly recurring nature. However, given that operating cash flow was substantially smaller than net income, caution is warranted in evaluating the level of current-period net income as a direct indicator of recurring earnings power.
The Q1 progress rates against the full-year plan were 19,914 million yen/82,000 million yen, or 24.3%, for revenue; 984 million yen/4,100 million yen, or 24.0%, for operating income; and 1,071 million yen/5,200 million yen, or 20.6%, for ordinary income. These were generally close to, or in the case of ordinary income slightly below, the simple one-quarter benchmark of 25%. Net income progressed to 4,007 million yen/6,200 million yen, or 64.6%; however, this resulted from a temporary boost from extraordinary income and does not indicate recurring progress. Full-year operating income and ordinary income are expected to decline 4.4% and 10.7%, respectively, year on year. Given that the earnings forecast was revised during the quarter, the plan appears to assume a slowdown in the second half.
The full-year dividend forecast is ¥74, and the implied payout ratio based on the full-year net income forecast of ¥62.0B and forecast EPS of ¥214.71 is approximately 34.5% (¥74/¥214.71). During the quarter, the company conducted ¥3.8B in share repurchases, increasing its treasury shares balance from ¥13.9B at the end of the previous fiscal year to ¥17.8B. With cash on hand of ¥258.4B, the company appears to pursue a shareholder return policy centered on dividends while flexibly combining them with share repurchases.
Weak cash conversion: Operating cash flow was ¥1.3B, and its ratio to net income of ¥40.1B was exceptionally low at 0.03x. Payments of ¥19.2B for corporate income taxes and other taxes and fluctuations in working capital were factors, making the pace of earnings conversion into cash a key monitoring point going forward.
Interest-bearing debt and interest coverage: Interest-bearing debt is substantial, including ¥527.3B in long-term borrowings and ¥165.0B in bonds, while interest coverage, calculated as EBIT/interest expense, was only 3.24x. The company’s ability to service interest expenses in a rising-rate environment cannot be considered fully adequate.
Reliance on extraordinary income and business concentration: The majority of current-period net income of ¥40.1B depended on temporary factors such as ¥50.1B in gains on the sale of investment securities, representing a level distinct from recurring earnings power. In addition, the company’s reliance on the Logistics Business for 92.6% of revenue warrants attention as a concentration within its business portfolio.
Profitability and Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.9% | 7.1% (4.3%–8.6%) | -2.1pt |
| Net Margin | 20.2% | 5.9% (2.8%–8.5%) | +14.4pt |
The operating margin is below the industry median, while the net margin ranks at a high level within the industry due to the impact of extraordinary income.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | -2.6% | 3.3% (0.2%–7.6%) | -5.9pt |
The revenue growth rate is substantially below the industry median, indicating that the company is lagging its industry peers in terms of growth.
Source: Compiled by the Company
The primary reason for the sharp increase in net income was extraordinary income, including gains on the sale of investment securities, while operating income, a recurring earnings indicator, increased only modestly by +0.3% year on year. The presence of these temporary factors must be taken into account when assessing net income as an indicator of recurring earnings power.
Operating cash flow declined to ¥1.3B, down 80.2% year on year, and the gap with net income has widened. Payments of corporate income taxes and other taxes and fluctuations in working capital were factors. Trends over the coming quarters will provide insight into the linkage between earnings and cash flow.
Full-year guidance anticipates year-on-year declines in both operating income and ordinary income, implying a second-half slowdown scenario that differs from the profit growth trend in the current quarter. How performance progresses against the full-year plan in future quarters will be a key focus.
This is a mechanically calculated reference range based solely on publicly available data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market stock price or a recommendation of any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear | ¥3,024 |
| base | ¥3,056 |
| bull | ¥3,063 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥3,647 |
| Adjusted Forecast EPS | ¥134.2 |
| Cost of Equity r | 9.65% (10-year Japanese government bond 2.65% + equity risk premium 6.00% + size premium 1.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 34.5% |
| Forecast EPS Confidence Adjustment | ×1.100 (based on progress ahead of the full-year forecast) |
| Implied PBR / PER |
Sensitivity: ¥2,972–¥3,144 at ±1% in the cost of equity, and ¥3,037–¥3,069 at ±0.1 in ω.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This figure does not predict or guarantee the future stock price)
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. 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 as necessary.
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| 0.84x / 22.8x |