Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
3235
¥ millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Presentation materials on financial resultsFiscal year ending March 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥31,579 million-8.8%
Operating profit¥8,935 million-3.7%
Ordinary income¥9,209 million-1.3%
Net income¥6,461 million-2.3%
Operating profit margin28.3%, up 1.5 percentage points year on year
Results for the three months of the current quarter
Revenue by serviceRetail electricity: ¥3,223 million; telecommunications lines: ¥663 million; other: ¥179 million; information and communications: ¥3,338 million; environmental: ¥223 million; storage batteries: ¥0 million; total: ¥7,868 million (January–March 2026)
Full-year earnings forecast
Revenue
¥29,400 million
Operating profit
¥5,700 million
Profit for the period attributable to owners of the parent
¥3,800 million
Operating Margin on Revenue
19.4 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit was in line with the initial forecast excluding gains on the transfer of the water-saving business and other businessesBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower electricity billingsDirectionDecline in Revenue
- Gains on the transfer of the water-saving business and other businessesApproximately ¥1.6 billion (¥1,655 million)DirectionIncrease in operating profit
- Dividend income from investment securities and other sourcesDirectionIncrease in net profit
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Electricity sales are expected to decline (specific assumptions Not disclosed)New initiatives
- A share exchange scheduled for 1 August 2026 to make the Company a wholly owned subsidiary of HIKARI TSUSHIN,INC.
- Transfer of the water-saving business and other businesses in March 2026
Key KPIsA metric the company considers important as a management benchmark.
- Recurring revenue (consolidated)¥5,834 millionYear on year against the same period last year-6.9%
- Recurring revenue (Network Infrastructure business)¥5,225 millionYear on year against the same period last year-12.9%
- Recurring revenue (Corporate Solutions business)¥1,090 millionYear on year against the same period last year+4.1%
Segment results
Network Infrastructure Business
Revenue
¥16,222 million-17.4%
Operating profit
¥5,732 million+25.1%
Corporate Solutions Business
Revenue
¥15,852 million-0.3%
Operating profit
¥3,265 million-31.6%
Number of stores and locations
End of period32 outsourced sales and maintenance service locations and 52 franchise locations
Number of employees
Number of Employees61 people
Annual Dividend
Annual dividend per share¥55
Interim¥20
End of period¥35
| Item | Details |
|---|---|
| Document type | Presentation materials on financial results |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥31,579 million (YoY -8.8%) |
| Operating profit | ¥8,935 million (YoY -3.7%) |
| Ordinary income | ¥9,209 million (YoY -1.3%) |
| Net income | ¥6,461 million (YoY -2.3%) |
| Operating profit margin | 28.3%, up 1.5 percentage points year on year |
| Results for the three months of the current quarter | Revenue by service Retail electricity: ¥3,223 million; telecommunications lines: ¥663 million; other: ¥179 million; information and communications: ¥3,338 million; environmental: ¥223 million; storage batteries: ¥0 million; total: ¥7,868 million (January–March 2026) |
| Full-year earnings forecast | Revenue ¥29,400 million / Operating profit ¥5,700 million / Profit for the period attributable to owners of the parent ¥3,800 million / Operating Margin on Revenue 19.4 % |
| Self-assessment against the plan | Operating profit was in line with the initial forecast excluding gains on the transfer of the water-saving business and other businesses |
| Segment results | Network Infrastructure Business Revenue ¥16,222 million (YoY -17.4%) / Operating profit ¥5,732 million (YoY +25.1%) / Corporate Solutions Business Revenue ¥15,852 million (YoY -0.3%) / Operating profit ¥3,265 million (YoY -31.6%) |
| Breakdown of Factors Affecting the Change | Factors Lower electricity billings / Amount Not disclosed / Direction Decline in Revenue, Factors Gains on the transfer of the water-saving business and other businesses / Amount Approximately ¥1.6 billion (¥1,655 million) / Direction Increase in operating profit, Factors Dividend income from investment securities and other sources / Amount Not disclosed / Direction Increase in net profit |
| Key KPIs | Indicator name Recurring revenue (consolidated) / Value ¥5,834 million / Year on year against the same period last year ¥-6.9 million, Indicator name Recurring revenue (Network Infrastructure business) / Value ¥5,225 million / Year on year against the same period last year ¥-12.9 million, Indicator name Recurring revenue (Corporate Solutions business) / Value ¥1,090 million / Year on year against the same period last year ¥4.1 million |
| Number of stores and locations | End of period 32 outsourced sales and maintenance service locations and 52 franchise locations / Openings and closures during the period Not disclosed |
| Number of employees | Number of Employees 61 people / Changes during the period and hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Electricity sales are expected to decline (specific assumptions Not disclosed) |
| Annual Dividend | Annual dividend per share ¥55 / Interim ¥20 / End of period ¥35 |
| New initiatives | A share exchange scheduled for 1 August 2026 to make the Company a wholly owned subsidiary of HIKARI TSUSHIN,INC., Transfer of the water-saving business and other businesses in March 2026 |
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.For the fiscal year ended March 2026, lower electricity billings reduced revenue, while approximately ¥1.6 billion in gains on the transfer of the water-saving business and other businesses was recognized in operating profit. For the fiscal year ending March 2027, electricity sales are expected to decline, while the Corporate Solutions business is expected to remain solid.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.