Kamigumi Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥19.29B
• Net Income: ¥13.54B
• EPS: ¥150.54

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend 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

Kowan Co., Ltd. (9364) reported solid profit growth for FY2026 Q2 (cumulative), with operating income of ¥19.292 billion, up 14.3% YoY, and net income of ¥15.245 billion, up 12.8% YoY, despite top-line items not being disclosed in the XBRL for this period. Ordinary income of ¥21.489 billion exceeded operating income by roughly ¥2.2 billion, indicating a meaningful contribution from non-operating gains (e.g., interest income, investment-related gains), while interest expense remained immaterial at ¥40 million. Cash conversion was strong: operating cash flow (OCF) reached ¥19.649 billion, translating to an OCF/net income ratio of 1.29, which supports earnings quality. The balance sheet appears very conservative, with total assets of ¥498.095 billion against total liabilities of ¥106.574 billion and total equity of ¥395.054 billion; this implies an equity ratio of approximately 79.3% (equity/total assets), notwithstanding the undisclosed item in the dataset. Liquidity is robust, with a current ratio of 335% and quick ratio of 333%, reflecting substantial current asset coverage of short-term obligations and minimal inventory exposure (¥1.046 billion). Leverage is low: the debt-to-equity ratio stands at 0.27x (using total liabilities as a proxy), and interest coverage is very high at 482x, underscoring low financial risk. Depreciation and amortization were ¥6.497 billion, putting EBITDA at ¥25.789 billion for the half-year, further supporting cash generation. The effective tax rate is shown as 0% in the pre-calculated metrics, but a simple reconstruction using disclosed income taxes (¥5.704 billion) and net income suggests an implied tax rate of about 27% for the period. ROE is not disclosed; using period-end equity as a proxy, half-year ROE is about 3.9%, and a rough annualized ROE would be around 7.7%, reflecting a high-equity base and low leverage. While revenue and gross profit were not disclosed, the increase in operating profit indicates resilient underlying demand and/or cost discipline. Non-operating contributions lifted ordinary income above operating income, which merits monitoring for sustainability. Working capital management looks prudent, with working capital of ¥109.702 billion. Investing and financing cash flow details were not disclosed, limiting free cash flow (FCF) analysis, but the positive OCF and low interest burden indicate capacity to fund operations and routine investments. Dividends were not disclosed for the period; EPS was ¥150.54, but payout metrics cannot be assessed from the dataset. Overall, the company demonstrates strong profitability momentum, excellent liquidity, and a conservative capital structure, though limited revenue disclosure and non-operating dependence are key areas to watch.

Profitability Analysis

ROE_decomposition: Full DuPont decomposition is constrained by the lack of disclosed revenue. Financial leverage (Assets/Equity) is approximately 1.26x (¥498.095b/¥395.054b). Net profit margin and asset turnover are not computable due to undisclosed revenue. Using period-end equity as a simple proxy, half-year ROE ≈ 3.9% (¥15.245b/¥395.054b), and a rough annualized ROE ≈ 7.7%. margin_quality: Operating income grew 14.3% YoY to ¥19.292b. Without revenue disclosure, operating margin cannot be computed; however, the YoY increase in operating profit suggests either margin expansion and/or revenue growth. Ordinary income exceeded operating income by ~¥2.197b, driven by non-operating items; interest expense was just ¥40m, implying the non-operating uplift was largely from income rather than lower finance costs. operating_leverage: Operating profit growth outpaced disclosed revenue (revenue was undisclosed), limiting precise leverage assessment. The 14.3% YoY increase in operating income implies positive operating leverage if sales growth was lower than 14%, but this cannot be confirmed. D&A of ¥6.497b versus operating income of ¥19.292b suggests healthy contribution from core operations, with EBITDA at ¥25.789b.

Growth Assessment

revenue_sustainability: Revenue is not disclosed in the dataset; thus, volume/price dynamics cannot be directly assessed. Given operating income growth, the underlying demand environment for logistics and port services appears supportive, but the magnitude of top-line growth is unknown. profit_quality: Net income of ¥15.245b increased 12.8% YoY, with OCF at ¥19.649b (OCF/NI = 1.29), indicating good earnings-to-cash conversion. Ordinary income benefited from ~¥2.2b of non-operating gains; persistence of these gains should be monitored. outlook: Near-term momentum is favorable given operating profit growth, strong cash generation, and modest interest burden. However, sustainability depends on the trajectory of trade volumes, capacity utilization, pricing, labor cost trends, and the repeatability of non-operating income.

Financial Health

liquidity: Current assets ¥156.362b vs. current liabilities ¥46.660b yield a current ratio of 335% and quick ratio of 333%, indicating ample short-term liquidity. Inventories are minimal at ¥1.046b, consistent with an asset-light inventory model. solvency: Total liabilities ¥106.574b vs. assets ¥498.095b imply a low leverage profile; equity/asset ratio is approximately 79.3%. Interest coverage is exceptionally strong at 482x, and interest expense is de minimis at ¥40m. capital_structure: Debt-to-equity (using total liabilities as a proxy) is 0.27x, underscoring conservative financing. Financial flexibility appears high, with capacity to fund operations and investments primarily from internal resources.

Cash Flow Quality

earnings_quality: OCF of ¥19.649b vs. net income of ¥15.245b yields an OCF/NI ratio of 1.29, indicating robust cash realization of earnings. FCF_analysis: Investing cash flow was not disclosed in the dataset, so FCF cannot be reliably calculated. Given positive OCF and low interest expense, underlying FCF is likely positive excluding unusually large capex, but this cannot be confirmed without capex/ICF disclosure. working_capital: Working capital stands at ¥109.702b (¥156.362b current assets minus ¥46.660b current liabilities), supporting operations and providing a buffer against cycle volatility.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio were not disclosed. EPS is ¥150.54 for the cumulative period, suggesting capacity for distributions, but actual payout policy cannot be evaluated from the provided data. FCF_coverage: FCF coverage cannot be assessed due to undisclosed investing cash flows and dividends. OCF strength (¥19.649b) supports potential coverage, subject to capex needs. policy_outlook: No guidance or policy detail provided in the dataset. With a strong balance sheet and cash generation, the company has flexibility; actual dividends will depend on capital allocation priorities (capex for logistics infrastructure, M&A, and balance sheet considerations).

Risk Assessment

Business Risks:

• Exposure to trade volumes and port throughput fluctuations affecting logistics demand
• Pricing pressure and competitive intensity in domestic port and logistics services
• Labor availability and wage inflation impacting service delivery and margins
• Energy and fuel cost volatility influencing operating expenses and surcharges
• Regulatory and environmental compliance requirements (decarbonization, port regulations)
• Operational disruptions from natural disasters (typhoons, earthquakes) and supply chain shocks
• Customer concentration risk if major shippers contribute materially to volumes

Financial Risks:

• Potential variability in non-operating income that lifted ordinary income above operating income
• Working capital swings tied to receivables/payables cycles
• Capex requirements for equipment and port facilities, which could elevate cash needs in certain periods
• Interest rate risk is currently low given minimal interest expense, but refinancing or new borrowing could change the profile
• Limited visibility due to undisclosed investing cash flows and cash balances in the dataset

Key Concerns:

• Revenue and gross profit not disclosed, limiting margin and growth diagnostics
• Investing cash flows not disclosed, preventing robust FCF analysis
• Dividend and share data not disclosed, constraining payout and per-share valuation context
• Reliance on non-operating income to lift ordinary profit above operating profit

Investment Implications

Key Takeaways:

• Operating income up 14.3% YoY to ¥19.292b; net income up 12.8% to ¥15.245b
• Ordinary income exceeded operating income by ~¥2.2b, highlighting non-operating contributions
• Strong cash conversion with OCF/NI at 1.29 and EBITDA of ¥25.789b
• Balance sheet highly conservative: equity ratio ~79% and D/E ~0.27x
• Exceptional liquidity with current ratio ~335% and minimal inventory exposure
• Interest burden negligible (¥40m), interest coverage 482x
• Data gaps on revenue, investing cash flows, and dividends constrain full margin and FCF assessment

Metrics to Watch:

• Top-line disclosure (revenue, gross profit) and operating margin progression
• Composition and sustainability of non-operating income
• Capex and investing cash flows to gauge true FCF
• OCF/Net income ratio and working capital movements
• Contract wins, throughput volumes, and pricing in core logistics/port operations
• Tax rate normalization versus the implied ~27% effective rate

Relative Positioning: Based on disclosed items, the company appears financially conservative with strong liquidity and low leverage, positioning it favorably versus more levered logistics peers; however, lack of revenue and capex disclosure limits comparative margin and FCF benchmarking.

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