SKY Perfect JSAT Holdings Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥17.21B
• Net Income: ¥9.89B
• EPS: ¥41.53

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

For FY2026 Q2 (cumulative), SKY Perfect JSAT Holdings delivered a solid improvement in profitability despite limited disclosure on the top line. Operating income was ¥17.21bn, up 24.0% YoY, signaling effective cost control and/or mix improvement in higher-margin businesses. Ordinary income reached ¥18.12bn, and net income was ¥11.77bn, up 21.1% YoY, indicating that non-operating items and taxes did not erode the operating uplift. EPS was ¥41.53 for the period. Depreciation and amortization totaled ¥9.70bn, underscoring the capital-intensive nature of the business. Interest expense was ¥0.84bn, with interest coverage of 20.6x, highlighting ample headroom against financing costs. Although revenue and gross profit were not disclosed in the XBRL, the strong operating income growth suggests margin expansion or operating leverage effects. Liquidity is robust, with current assets of ¥228.55bn versus current liabilities of ¥69.84bn, yielding a current ratio of 327% and working capital of ¥158.72bn. The balance sheet is conservative: total assets are ¥399.82bn and equity is ¥292.70bn, implying modest financial leverage of 1.37x (assets/equity). Operating cash flow was ¥24.95bn, exceeding net income by 2.12x, a favorable cash conversion outcome. Financing cash flow was an outflow of ¥7.99bn, consistent with debt repayment and/or shareholder returns, but dividend details were not disclosed. Investing cash flow was not reported, limiting visibility on free cash flow and capex cadence. The implied effective tax rate, approximated using reported taxes and pre-tax income derived from net income, is in the high-20% range, which appears normal for the group’s profile. Overall, the company exhibits improved profitability, strong liquidity, manageable leverage, and healthy cash generation. However, the absence of revenue, investing CF, and dividend data in this disclosure reduces analytical precision around margins, free cash flow, and payout policy.

Profitability Analysis

ROE decomposition is constrained by the absence of revenue and beginning/ending equity; however, we can assess components. Profitability: net income was ¥11.77bn; with total assets at period end of ¥399.82bn, annualization aside, a simple ROA snapshot is ~2.9% for the half-year (not annualized). Financial leverage is modest at ~1.37x (assets/equity = 399.82/292.70). Net margin cannot be computed due to undisclosed revenue, but operating income grew 24.0% YoY, indicating improved operating efficiency or favorable mix. Operating leverage appears positive as operating income outpaced net income growth and was achieved despite unknown revenue, suggesting cost discipline and potential scale benefits. Margin quality: D&A of ¥9.70bn against operating income implies solid EBITDA support (EBITDA approximately ¥26.91bn as provided), and interest coverage of 20.6x confirms operating earnings are well above financing costs. Estimated effective tax rate, based on taxes of ¥4.48bn and pre-tax income approximated at ~¥16.25bn (net income + taxes), is ~27.6%, within a normal range. Overall profitability looks resilient with improved operating performance and sound cost structure, but exact margin mix (gross/operating) cannot be concluded without revenue data.

Growth Assessment

Revenue sustainability cannot be directly evaluated due to undisclosed revenue; however, operating income grew 24.0% YoY and net income grew 21.1% YoY, indicating underlying earnings momentum. The spread between operating and ordinary income suggests stable non-operating contributions, and the modest interest burden supports earnings scalability. Profit quality appears good, with OCF at 2.12x net income, indicating cash-backed earnings. D&A remains sizable, consistent with a capital-intensive satellite and media infrastructure model; this can support stable EBITDA but requires ongoing reinvestment. Without investing CF and capex detail, it is unclear whether growth is being funded through internal cash or deferred capex. Near-term outlook depends on service mix (broadcast vs data/enterprise), pricing, and capacity utilization; the improved operating income suggests either higher utilization or cost efficiencies. Sustainability will hinge on churn/ARPU in media, data demand from enterprise/government, and timing of satellite fleet upgrades. Overall, the growth profile looks steady-to-improving on the earnings line, but visibility on the revenue base and reinvestment cycle is limited in this dataset.

Financial Health

Liquidity is strong: current assets ¥228.55bn vs current liabilities ¥69.84bn result in a current ratio of ~327% and working capital of ¥158.72bn, providing ample short-term flexibility. Solvency appears sound with total equity of ¥292.70bn and total assets of ¥399.82bn, implying a leverage multiple (assets/equity) of ~1.37x. The provided debt-to-equity ratio is 0.41x, indicating moderate balance sheet gearing typical for infrastructure-heavy businesses. Interest expense of ¥0.84bn is well covered by operating income (20.6x), leaving room against potential rate or spread increases. The equity ratio was shown as 0% in the dataset, but that reflects missing disclosure formatting rather than actual capital structure; the balance sheet clearly shows equity at ~73% of assets (292.70/399.82). Overall, the company is conservatively capitalized with strong liquidity and manageable leverage.

Cash Flow Quality

Operating cash flow was ¥24.95bn versus net income of ¥11.77bn, producing an OCF/NI ratio of 2.12x, which indicates robust earnings quality and favorable working capital movements and/or non-cash charges (e.g., D&A) flowing through to cash. EBITDA support is solid (approx. ¥26.91bn), consistent with the observed cash conversion. Free cash flow cannot be assessed because investing cash flow is undisclosed in this period; satellite capex can be lumpy and may materially affect FCF in alternate periods. Working capital appears favorable given the large current asset base relative to current liabilities; however, without inventory/receivables/payables detail, the drivers of OCF outperformance cannot be isolated. Financing CF was a ¥7.99bn outflow, likely reflecting dividends and/or debt repayment, suggesting internal cash generation is supporting capital allocation. Overall, cash flow quality looks strong on the operating line, but true FCF sustainability cannot be concluded without capex detail.

Dividend Sustainability

Dividend data for the period show DPS and payout ratio as zero, which we treat as undisclosed rather than actual zero. As such, payout assessment requires inference. On coverage, operating cash flow of ¥24.95bn versus net income of ¥11.77bn indicates capacity to fund distributions from internally generated cash, provided maintenance and growth capex are manageable. However, absent investing CF/capex disclosure, FCF coverage of dividends cannot be determined. Balance sheet strength (equity ¥292.70bn; moderate leverage) provides additional cushion for stable dividends through cycles. Policy outlook cannot be inferred from this dataset; historically, payout policies in capital-intensive communications businesses balance returns with fleet renewal needs. In short, dividend sustainability appears supportable from earnings and liquidity, but confirmation requires visibility on capex, actual DPS, and stated policy.

Risk Assessment

Business Risks:

• Revenue concentration in media and satellite services with exposure to subscriber churn, ARPU pressure, and contract renewals
• Capital intensity and lumpy capex for satellite fleet replacement and launches
• Technology shifts (HTS/NGSO constellations) affecting pricing and competitiveness
• Capacity utilization risk tied to enterprise/government demand and broadcast market trends
• Regulatory and spectrum allocation risks in key markets
• Operational risks around launch schedules, in-orbit anomalies, and ground network reliability

Financial Risks:

• Free cash flow volatility due to timing of large capex projects (investing CF not disclosed this period)
• Interest rate and refinancing risk, albeit mitigated by 20.6x interest coverage and modest leverage
• Foreign exchange exposure on satellite procurement and space-related contracts
• Potential working capital swings tied to large customer contracts

Key Concerns:

• Lack of disclosed revenue and investing cash flows limits assessment of margin structure and FCF durability
• Future capex requirements for fleet upgrades may compress free cash flow and constrain distributions
• Competitive dynamics from alternative satellite systems could pressure pricing and utilization

Investment Implications

Key Takeaways:

• Operating income ¥17.21bn (+24.0% YoY) and net income ¥11.77bn (+21.1% YoY) indicate improving profitability
• Strong liquidity with ¥158.72bn working capital and ~327% current ratio
• Modest leverage: assets/equity ~1.37x; interest coverage 20.6x
• OCF ¥24.95bn with OCF/NI 2.12x signals high earnings quality
• Capex/FCF visibility is limited as investing CF is undisclosed; true FCF cannot be assessed
• Dividend information is not disclosed; payout capacity appears supported by OCF and balance sheet, subject to capex needs

Metrics to Watch:

• Revenue trajectory and segment mix (media vs data/enterprise) once disclosed
• Capex and investing cash flows (satellite procurement and launch schedule)
• OCF/NI and EBITDA trends as indicators of cash-backed earnings
• Interest-bearing debt levels and interest coverage amid rate environment
• Contract backlog, churn, and ARPU in media and enterprise segments
• Utilization rates of satellite capacity and pricing
• Effective tax rate stability

Relative Positioning: Within domestic telecom/media and infrastructure peers, the company appears conservatively capitalized with strong liquidity and solid cash conversion, consistent with established satellite operators; however, higher capex cyclicality relative to pure-play media peers can introduce FCF volatility.

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