ASEED HOLDINGS CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥13.55B
• Operating Income: ¥701M
• Net Income: ¥487M
• EPS: ¥46.19

Income Statement

Balance Sheet

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

ASEED Holdings (9959) reported FY2026 Q2 consolidated results under JGAAP showing steady top-line growth and stronger profit momentum. Revenue grew 5.1% year on year to ¥13.55bn, while operating income rose 12.2% to ¥701m, indicating margin expansion and some operating leverage. Net income advanced 16.7% to ¥569m, with EPS at ¥46.19. Gross profit of ¥4.85bn translates to a gross margin of 35.8%, supporting an operating margin of 5.2% and a net margin of 4.2%. DuPont decomposition yields an ROE of 7.5%, driven by a 4.2% net margin, 0.667x asset turnover, and 2.69x financial leverage. Liquidity is tight: current ratio is 87.5% and working capital is negative ¥1.07bn, though solvency is adequate with total liabilities/equity at 1.64x. Based on balance sheet figures, the equity ratio approximates 37.2% (equity of ¥7.57bn over assets of ¥20.32bn), despite the reported 0% figure which appears unreported in XBRL. Interest expense is modest at ¥18m, and interest coverage is strong at 38.9x. Tax expense of ¥199m implies an effective rate around the mid‑20s, despite the summarized “0.0%” data point. Cash flow figures (OCF, capex, FCF) are unreported, which limits assessment of earnings-to-cash conversion and capital intensity. Depreciation and EBITDA are also unreported, making it difficult to gauge underlying cash profitability relative to operating income, a notable limitation for a vending/retail-like model where D&A and capex are material. Dividend information is not disclosed in the dataset; payout capacity therefore cannot be evaluated quantitatively. Overall, results suggest improving profitability on moderate revenue growth and manageable leverage, balanced against tight short-term liquidity and a lack of cash flow disclosure. The outlook hinges on sustaining margin gains, managing input cost pressures (electricity, logistics), and maintaining asset productivity. Data limitations around cash flows and depreciation warrant caution in interpreting cash-based metrics and dividend capacity.

Profitability Analysis

ROE_decomposition: ROE 7.52% = Net margin 4.20% × Asset turnover 0.667 × Financial leverage 2.69. Net margin improved alongside net income growth (+16.7% YoY) outpacing revenue (+5.1% YoY). Asset turnover of ~0.67x reflects a relatively asset-intensive model; leverage of 2.69x (assets/equity) is moderate for the sector. margin_quality: Gross margin is 35.8% (¥4,853m/¥13,548m). Operating margin ~5.17% (¥701m/¥13,548m). Ordinary margin ~6.17% (¥836m/¥13,548m) benefited from net non-operating items. Net margin 4.20% (¥569m/¥13,548m). The widening gap between revenue and operating income growth indicates improved mix and/or cost control. operating_leverage: Operating income grew 12.2% vs revenue growth of 5.1%, evidencing positive operating leverage in the period. With depreciation unreported, the degree of fixed-cost absorption cannot be precisely quantified, but the spread suggests better utilization and overhead containment.

Growth Assessment

revenue_sustainability: Top-line growth of 5.1% appears steady. Sustainability will depend on vending/retail throughput, route optimization, and pricing discipline amid input cost pressures. profit_quality: Net income grew 16.7%, exceeding sales growth, indicating margin expansion. Interest burden is low (¥18m) and does not drive results; tax expense (¥199m) implies a normalized rate ~26% (approximate), supporting quality of earnings absent extraordinary items. outlook: If cost controls and pricing hold, near-term operating margin could remain resilient. Key watchpoints include electricity and logistics costs, procurement terms, and demand trends. Asset turnover at ~0.67x leaves room for efficiency gains if machine utilization and inventory turns improve.

Financial Health

liquidity: Current assets ¥7,505m vs current liabilities ¥8,575m yields a current ratio of 87.5% and quick ratio of 75.7% (ex-inventories). Working capital is negative at ¥1,070m, indicating reliance on short-term funding or supplier credit. solvency: Total liabilities ¥12,431m vs equity ¥7,565m implies debt-to-equity (total liabilities/equity) of 1.64x. Based on balance sheet, equity ratio is ~37.2% (not 0% as reported), suggesting moderate solvency. capital_structure: Financial leverage is 2.69x (assets/equity). Interest expense is low (¥18m), with strong coverage (38.9x using operating income), indicating ample headroom on finance costs.

Cash Flow Quality

earnings_quality: Operating cash flow is unreported; thus, OCF/Net income and cash conversion cannot be assessed from the provided data. Given the business model’s capital intensity, unreported depreciation and capex inhibit evaluation of cash earnings. FCF_analysis: Free cash flow is unreported. Without OCF and investing cash flows, FCF coverage of obligations and reinvestment capacity cannot be determined. working_capital: Negative working capital (¥-1,070m) and quick ratio of 75.7% suggest tight liquidity and potential sensitivity to collection/inventory management. However, lack of cash flow data prevents assessing period-to-period WC movements.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are unreported in this dataset. EPS is ¥46.19 for the period, but without DPS, historical policy, or OCF/FCF, payout sustainability cannot be quantified. FCF_coverage: Not assessable due to unreported OCF and capex. policy_outlook: If margin gains persist and leverage remains moderate, capacity for distributions could exist; however, tight liquidity metrics and unknown cash generation warrant a cautious stance pending cash flow disclosure and management guidance.

Risk Assessment

Business Risks:

• Energy and utilities cost inflation impacting vending/retail operations
• Procurement and raw material price variability affecting gross margin
• Labor availability and route efficiency for field operations
• Competition and pricing pressure in beverage/retail channels
• Utilization risk of installed assets (vending machine throughput)

Financial Risks:

• Tight liquidity with current ratio below 1.0 and negative working capital
• Refinancing and short-term funding dependence amid rising rates
• Potential capex needs for maintenance/renewal given asset intensity
• Limited visibility due to unreported OCF, capex, and depreciation

Key Concerns:

• Cash flow opacity: OCF/FCF unreported, depreciation unreported
• Short-term liquidity pressure despite acceptable solvency
• Sustainability of recent margin expansion amid cost headwinds

Investment Implications

Key Takeaways:

• Solid profit growth with operating leverage: Operating income +12.2% vs sales +5.1%
• Healthy profitability profile: gross margin 35.8%, net margin 4.2%, ROE 7.5%
• Manageable leverage and strong interest coverage, but tight liquidity (current ratio 87.5%)
• Cash flow and capex metrics unreported, limiting assessment of earnings quality and dividend capacity
• Equity ratio recalculated at ~37.2%, contradicting the reported 0% (likely an unreported field)

Metrics to Watch:

• Operating cash flow and capex/maintenance capex once disclosed
• Depreciation and EBITDA to gauge cash profitability
• Working capital turns (receivable days, inventory days, payable days)
• Gross margin trajectory vs electricity/logistics and procurement costs
• Asset productivity: asset turnover, machine count/utilization
• Net leverage and interest coverage under different rate scenarios

Relative Positioning: Within domestic vending/retail peers, ASEED appears to combine moderate leverage and improving margins, though its short-term liquidity is tighter than ideal and disclosure gaps (cash flows, depreciation) reduce visibility relative to larger, more transparent competitors.

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