| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥584.0B | ¥556.4B | +5.0% |
| Operating Income | ¥42.0B | ¥40.7B | +3.0% |
| Ordinary Income | ¥46.8B | ¥45.3B | +3.3% |
| Net Income | ¥23.4B | ¥19.9B | +17.5% |
| ROE | 11.2% | 10.2% | - |
For the fiscal year ending February 2026, the company secured revenue of ¥584.0B (YoY +¥27.6B +5.0%), Operating Income of ¥42.0B (YoY +¥1.3B +3.0%), Ordinary Income of ¥46.8B (YoY +¥1.5B +3.3%), and Net Income attributable to owners of parent of ¥23.4B (YoY +¥3.5B +17.5%), achieving both revenue and profit growth. Revenue maintained a third consecutive year of growth; Operating Income rose only modestly, but expansion of non-operating income and a reduction in corporate taxes drove double-digit growth in Net Income. Operating margin was 7.2% (YoY -0.1pt), and Net Income margin was 4.0% (YoY +0.4pt), indicating generally stable profitability. Gross profit margin was slightly compressed to 17.6% (YoY -0.5pt), offset by an improvement in SG&A ratio to 10.4% (YoY -0.4pt). Non-operating items—interest income ¥1.2B, equity-method investment income ¥2.1B, and foreign exchange gains ¥1.1B—lifted Ordinary Income, and combined with reduced tax burden, Net Income rose significantly.
[Revenue] The Japan segment led with ¥497.3B (YoY +¥25.9B +5.5%), accounting for 85.2% of total revenue. China segment posted ¥70.0B (YoY +¥1.4B +2.0%), and Other segments ¥16.6B (YoY +¥0.4B +2.4%), all delivering revenue increases. Japan was driven by expansion in international cargo transport and ancillary services; China saw relatively modest growth but maintained a high Operating Income margin of 9.4%. External customer revenue excluding intersegment transactions grew +5.0% overall due to robust orders in Japan and stable operations in China.
[Profitability] Operating Income was ¥42.0B (+3.0%), an increase smaller than revenue growth. The main factor was a decline in gross profit margin: gross margin fell to 17.6% (from 18.1%, -0.5pt) due to higher freight costs and price competition compressing spreads. SG&A was restrained at ¥61.0B (+1.2%), improving the SG&A ratio to 10.4% (from 10.8%, -0.4pt). Fixed cost controls, including goodwill amortization of ¥1.1B, supported profits. Ordinary Income was ¥46.8B (+3.3%); non-operating income totaled ¥5.0B (interest income ¥1.2B, equity-method investment income ¥2.1B, FX gains ¥1.1B, etc.), far exceeding non-operating expenses of ¥0.1B, keeping the ordinary-stage profit margin at 8.0% (YoY -0.1pt). Extraordinary gains/losses were immaterial at ¥0.0B, leaving Pre-tax Income at ¥46.8B. Corporate taxes were ¥13.9B (effective tax rate 29.6%), down ¥0.4B YoY; after deducting ¥1.2B attributable to non-controlling interests, Net Income attributable to owners of parent was ¥23.4B (+17.5%). In summary, while spread compression restrained operating margins, cost discipline combined with non-operating income and reduced tax burden produced double-digit Net Income growth.
Japan segment Operating Income was ¥33.6B (YoY +¥1.8B +5.5%), margin 6.8% (same as prior year), reflecting profit growth in line with revenue. China segment Operating Income was ¥6.6B (YoY -¥0.2B -2.5%), margin 9.4% (from 9.7%, -0.3pt), a slight decline but maintaining high margins. Other segments Operating Income was ¥1.8B (YoY -¥0.3B -16.3%), margin 10.5% (from 12.5%, -2.0pt), with cost increases at local subsidiaries in Taiwan, Vietnam, and Myanmar cited as drivers. Japan accounts for roughly 80% of both revenue and profit, highlighting concentration risk; China and Other are smaller but maintain relatively high margins, providing limited regional diversification benefits.
[Profitability] Operating margin was 7.2% (from 7.3%, -0.1pt), Ordinary Income margin 8.0% (from 8.1%, -0.1pt), showing stable trends. ROE was 11.2%, with a solid financial base and Equity Ratio of 75.6%, supporting continued efficient use of shareholder capital. Pre-goodwill-amortization margin was about 7.4%, indicating minimal intangible amortization burden. [Cash Quality] Operating Cash Flow was ¥35.3B, exceeding consolidated Net Income of ¥31.8B, resulting in an OCF/NI ratio of 1.11x—healthy. EBITDA (approx.) adding depreciation ¥5.3B yields ¥47.2B, giving OCF/EBITDA of 0.75x; increases in working capital (accounts receivable +¥4.5B, prepaid expenses +¥4.4B) suppressed cash conversion. Free Cash Flow was ¥19.4B, below total dividend payments of ¥20.0B (calculated on 23.5 million shares × ¥100 with year-end dividend of ¥55), so internal reserves and ample cash (cash and deposits ¥141.7B) supplemented payouts. [Investment Efficiency] Capital expenditures were ¥0.3B, only 6% of depreciation ¥5.3B, indicating constrained growth/renewal investment. Investment securities rose to ¥39.2B (YoY +¥14.3B +57.4%), signaling expanded deployment of surplus funds. [Financial Health] Equity Ratio 75.6% and current ratio 416.7% are extremely strong; D/E ratio 0.32x (interest-bearing debt limited to short-term lease liabilities) indicates low leverage. Cash and deposits of ¥141.7B represent 51.3% of total assets, showing very high liquidity. Net assets ¥208.6B (YoY +¥13.8B) increased through retained earnings and comprehensive income accumulation.
Operating Cash Flow was ¥35.3B (YoY +¥3.0B +9.4%). Starting from Pre-tax Income ¥46.8B, adding depreciation ¥5.3B, goodwill amortization ¥1.1B, and subtracting equity-method income ¥2.1B produced a subtotal of ¥45.9B, from which changes such as accounts receivable increase -¥4.5B, accounts payable increase +¥3.9B, and corporate tax payments -¥13.6B led to the closing OCF. Working capital increases constrained OCF, but cash generation still exceeded Net Income of ¥31.8B. Investing Cash Flow was -¥15.9B, primarily due to capital expenditures -¥0.3B, acquisition of investment securities -¥12.6B, and net increase in time deposits -¥2.4B (placements -¥15.7B, withdrawals +¥13.3B). Intangible asset additions -¥0.6B were also included, indicating limited growth investment. Financing Cash Flow was -¥22.2B, with dividend payments -¥20.0B accounting for most of the outflow and other financing activities -¥1.9B. Consequently, cash and equivalents decreased by -¥1.6B to an ending balance of ¥138.5B. Including FX impact +¥1.2B, the cash position remained stable. Free Cash Flow ¥19.4B covers theoretical total dividends (DPS ¥100 basis) at 0.81x, implying that to maintain dividends, optimization of working capital or continued restraint in growth investment is required.
Quality of earnings is solid at the ordinary level, with Operating Income ¥42.0B forming core earnings. Of the ¥5.0B non-operating income, interest income ¥1.2B (including deposit interest), equity-method investment income ¥2.1B (stable contributions from two affiliates), and FX gains ¥1.1B (benefit from yen depreciation on transactional and valuation assets) are primary and characterized by high continuity. One-off items are negligible: extraordinary gains ¥0.01B (gain on sale of fixed assets) and extraordinary losses ¥0.01B (loss on retirement of fixed assets), confirming results are driven by core operations. Accrual ratio (Net Income - OCF)/Net Assets is -1.3%, indicating earnings are well-backed by cash. The gap between Ordinary Income ¥46.8B and consolidated Net Income ¥31.8B is explained by corporate taxes ¥13.9B (effective rate 29.6%) and allocation to non-controlling interests ¥1.2B, with tax burden trending down YoY. Under JGAAP, goodwill amortization ¥1.1B represents 2.6% of Operating Income, but remaining goodwill balance is ¥3.3B and impairment risk is limited. Comprehensive income ¥35.3B notably exceeds Net Income ¥23.4B: Other Comprehensive Income ¥2.4B (foreign currency translation adjustments ¥1.3B, valuation differences on available-for-sale securities ¥0.9B, retirement benefit adjustments -¥0.0B, equity-method OCI ¥0.2B) contributed to net assets growth.
The company plan for FY2027 (ending February 2027) assumes Revenue ¥625.0B, Operating Income ¥45.3B (YoY +7.9%), Ordinary Income ¥49.6B (YoY +6.0%), Net Income attributable to owners of parent ¥33.9B (YoY +44.9%), EPS ¥144.29, and dividend ¥55. Compared with the current period, this implies Revenue +7.0% and Operating Income +7.9%, both indicating growth; progress rates (based on 9 months of current year) are Revenue 93.4% and Operating Income 92.7%, showing steady progress. The Operating Income increase of ¥3.3B assumes revenue growth of ¥41.0B along with maintained gross margin and continued SG&A efficiency improvements. Ordinary Income growth of +6.0% is less than Operating Income growth, reflecting an assumed slowdown in non-operating income growth. The large projected Net Income increase (+44.9%) assumes tax optimization and elimination of temporary factors. Dividend ¥55 equals the current year-end dividend; payout ratio on the company plan basis is 38.1% (down from 61.7% prior year), indicating a policy of strengthening retained earnings. Realization depends on sustained revenue growth in Japan, stable operations in China, and continued SG&A ratio restraint. External factors—FX, fuel, freight market volatility—and improvement in working capital cash conversion are focal points for achieving targets.
This year’s dividends: interim ¥45 and year-end ¥55, totaling ¥100, up ¥60 from prior year total of ¥40. Payout ratio was 61.7% (on basic EPS ¥135.18) and DOE was 10.3%, reflecting a strong shareholder-return orientation. Total dividends were approximately ¥20.0B (after treasury stock deduction; issued shares 23.5 million × ¥100), slightly above Free Cash Flow ¥19.4B, yielding FCF coverage 0.97x and indicating a short-term shortfall. However, with cash and deposits ¥141.7B and very ample liquidity, the company can supplement dividends by drawing on reserves. The FY2027 plan discloses only a year-end dividend of ¥55; annual total with interim unspecified. If annual ¥100 is continued, payout ratio versus planned Net Income ¥33.9B would rise to about 69.7%, keeping return levels elevated. No share buybacks were executed this term, so Total Return Ratio equals the payout ratio. Sustainability assessment: without improvements in OCF stability, working capital optimization, and appropriate capital expenditures to improve FCF, mid-to-long-term scope for higher dividends is limited. Clearer dividend policy (payout ratio range or DOE target) would aid investor dialogue.
Regional concentration risk: Japan accounts for 85.2% of revenue and 80.0% of Operating Income, making the company highly sensitive to domestic economic conditions, price competition, and regulatory changes. China and Other segments together comprise only 14.8%, limiting regional diversification. As the domestic cargo transport market matures, Japan-heavy portfolio presents risk of medium-term growth plateau.
Gross margin compression risk: Gross profit margin at 17.6% (YoY -0.5pt) remains low; rising freight and fuel costs and price competition compress spreads. While SG&A improvements have preserved Operating margin, absent enhanced value-added services and unit price improvement, trend decline in margins is a clear risk. The margin gap—China 9.4% vs Japan 6.8%—reflects business mix and pricing strategy differences; upgrading value-add in Japan is a key challenge.
Competitive deterioration risk due to underinvestment: CapEx ¥0.3B is only 6% of depreciation ¥5.3B, showing suppressed investment in IT, systems, and networks. Tangible fixed assets ¥5.7B and intangible fixed assets ¥12.6B indicate a lean asset base, constraining medium-to-long-term service quality and operational efficiency improvements. While allocation to investment securities has increased, delayed reinvestment in the business could widen competitiveness gaps with peers.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 7.2% | 6.3% (3.7%–8.5%) | +0.9pt |
| Net Income Margin | 4.0% | 2.7% (1.6%–4.7%) | +1.3pt |
Profitability exceeds the industry median, supported by cost discipline and contribution from non-operating income.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 5.0% | 5.0% (-0.4%–9.4%) | -0.0pt |
Revenue growth is in line with the industry median, reflecting an average growth pace.
※Source: Company compilation
While SG&A efficiency improvements underpin Operating Income, persistently low gross margins constrain margin expansion; strengthening value-added services and improving unit prices are keys to medium-term profitability improvement. Japan-heavy structure trades stability for risk of growth ceiling; redeploying the advantage of higher margins in China and Other toward portfolio restructuring is desirable.
OCF exceeds Net Income, reflecting healthy cash quality, but OCF/EBITDA at 0.75x falls below best-practice thresholds due to working capital increases; improving receivables and prepaid expense cycles is central to strengthening next-period cash generation. CapEx at 6% of depreciation shows marked restraint in growth/renewal investment; accelerating reinvestment in IT and networks is essential for long-term competitiveness. Payout ratio of 61.7% is high, and FCF coverage 0.97x indicates near-term imbalance, though ample cash (51.3% of total assets) supports sustainability; absent working capital optimization and recovery in growth investment, room for further increases in dividends is limited. Accumulation of investment securities (+57.4%) shows expanded deployment of surplus funds but increases exposure to market volatility.
The FY2027 plan assumes Operating Income +7.9% with continued SG&A efficiency and stable non-operating income contribution. Maintaining gross margins, improving working capital cash conversion, and managing FX and freight market volatility are critical for realizability. If Japan’s revenue growth trend and China’s stable operations continue, targets are within reach; however, prolonged underinvestment raises business-base fragility, necessitating a rebalancing between growth investment and shareholder returns to transition to the next growth stage.
This report is an earnings 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 available financial statements. Investment decisions are your responsibility; please consult a professional advisor as needed.