| Metric | Current Period | Prior-year Period | YoY |
|---|---|---|---|
| Revenue | ¥100.9B | ¥105.1B | -4.0% |
| Operating Income | ¥3.7B | ¥6.2B | -40.6% |
| Ordinary Income | ¥4.4B | ¥7.0B | -37.6% |
| Net Income | ¥3.2B | ¥4.8B | -33.6% |
| ROE | 5.9% | 9.9% | - |
Hyoki Kaiun’s FY2026 Q3 (9-month cumulative) non-consolidated results were Revenue ¥100.9B (YoY -¥4.2B -4.0%), Operating Income ¥3.7B (YoY -¥2.5B -40.6%), Ordinary Income ¥4.4B (YoY -¥2.6B -37.6%), and Net Income ¥3.2B (YoY -¥1.6B -33.6%). The downtrend in both revenue and earnings became pronounced, with the operating margin declining to 3.6%. By business, the Port Transportation and Warehousing Business recorded revenue of ¥43.9B and operating income of ¥1.9B, while the Marine Transportation Business recorded revenue of ¥57.1B and operating income of ¥1.8B. For the full-year outlook, the company forecasts Revenue ¥135.0B (YoY -1.7%) and Operating Income ¥4.1B (YoY -25.2%). As of Q3, progress against the full-year plan stands at 74.7% for revenue and 89.8% for operating income.
[Profitability] ROE 5.9% (DuPont analysis: Net Profit Margin 3.2% × Total Asset Turnover 0.79x × Financial Leverage 2.35x), Operating Margin 3.6% (deteriorated by -2.6pt from 6.2% a year ago), Gross Margin 18.8%. Net Profit Margin of 3.2% declined by -1.4pt from 4.6% last year. [Cash Quality] Cash and Deposits ¥17.2B; cash coverage of short-term liabilities at 1.02x. Dividend income of ¥0.9B contributed to non-operating income. [Investment Efficiency] Total Asset Turnover 0.79x (annualized assumption 1.05x), estimated ROIC 3.0%, a low level. Property, Plant and Equipment ¥52.3B; Investment Securities ¥26.6B (+28.0% from ¥20.8B last year), indicating a capital-intensive structure. [Financial Soundness] Equity Ratio 42.5% (+3.9pt improvement from 38.6% last year), Current Ratio 115.9%, Debt-to-Equity Ratio 1.35x. Interest-bearing debt ¥48.8B (short-term borrowings ¥16.9B, long-term borrowings ¥31.9B); Interest Coverage 10.2x indicates sound debt-servicing capacity. Debt/Capital Ratio 47.2%.
Cash and Deposits increased slightly by +¥1.7B YoY to ¥17.2B, maintaining coverage of short-term borrowings of ¥16.9B at 1.02x. Investment Securities increased by +¥5.8B from ¥20.8B last year to ¥26.6B, suggesting a shift of surplus funds into investments. Intangible Assets decreased by -¥0.2B from ¥0.6B last year to ¥0.4B, reflecting ongoing amortization and/or restrained investment. Net Assets increased by +¥6.0B from ¥48.5B last year to ¥54.5B, aided by the accumulation of Net Income of ¥3.2B and an increase in Net Unrealized Gains on Investment Securities to ¥2.9B (from ¥1.9B last year). Total interest-bearing debt of ¥48.8B (short-term borrowings ¥16.9B and long-term borrowings ¥31.9B) increased slightly from ¥47.4B last year, implying part of investment funding may have been financed by debt. With interest expense of ¥0.4B and Operating Income of ¥3.7B, Interest Coverage remains at a healthy level.
With Ordinary Income at ¥4.4B and Operating Income at ¥3.7B, net non-operating income contribution is approximately ¥0.7B. The main component of non-operating income is dividend income of ¥0.9B, accounting for 0.9% of revenue. Given the increase in Investment Securities (+28.0%), there is potential for future expansion of dividend income and valuation gains; however, the reliance on such income to offset weakening core operating profitability warrants cautious assessment from a sustainability perspective. The main driver of the operating margin deterioration from 6.2% to 3.6% was the decline in Gross Margin to 18.8% (-1.1pt from 19.9% last year), coupled with SG&A expenses of ¥15.3B (+3.6% YoY from ¥14.8B) growing faster than the decline in revenue. As the Operating Cash Flow (OCF) breakdown is undisclosed, direct reconciliation between earnings and cash cannot be confirmed; however, the combination of a lower profit level and increased Investment Securities suggests challenges in the quality of earnings in the core business.
[Position within Industry] (Reference information; in-house survey) Hyoki Kaiun belongs to the Marine Transportation sector and operates Port Transportation and Warehousing as well as Marine Transportation businesses. The operating margin of 3.6% is low versus the recent median in the sector (reference: the marine transportation industry generally has an operating margin median in the 5–8% range). The Equity Ratio of 42.5% is mid-level considering the capital-intensive nature of marine transport and is standard relative to peers’ median of 35–50%. ROE of 5.9% is slightly below the industry median of 6–9%. The balance of Investment Securities is high at 20.8% of total assets, exceeding the typical holding level (10–15%) in the sector. The full-year outlook of -1.7% revenue decline and -25.2% operating income decline is relatively cautious compared with the broader sector trend (demand recovery phase in FY2024–FY2025). As a small, regionally focused marine transporter, the company is at a structural disadvantage versus major shippers in economies of scale and international expansion, which is reflected in profitability differentials. (Industry: Marine Transportation; comparison basis: FY2024–FY2025 financial data; source: in-house compilation)
This report is an automatically generated earnings analysis created by AI based on XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information aggregated by our firm based on publicly available financial statements. Investment decisions are your own responsibility; consult a qualified professional as needed.