Worth reading
72In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
568
Year-on-year increase in operating income (¥ million)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter of the fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales25,606 million yen+9.0%
Operating profit1,093 million yen+108.2%
Ordinary income1,076 million yen+82.5%
Net income556 million yen+215.0%
Selling, general and administrative expenses4,705 million yen
Gross Profit Margin
Rate22.6%
Year-on-year change (points)+0.5 percentage points year on year
Operating profit margin
Rate4.3%
Year-on-year change (points)+2.1 percentage points
Full-year earnings forecast
Net Sales
50,000 million yen
Gross profit
11,430 million yen
Selling, general and administrative expenses
9,980 million yen
Operating profit
1,450 million yen
Ordinary income
1,350 million yen
Net income
540 million yen
Capital expenditures
2,116 million yen
Depreciation and amortization
1,200 million yen
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales51.2%
Gross profit50.7%
Selling, general and administrative expenses47.1%
Operating profit75.4%
Ordinary income79.7%
Net income103.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Finished the interim period at a very strong levelBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in first-half operating income
Environmental Equipment-Related Business+¥190 million
Housing Equipment Business+¥255 million
Renewable Energy-Related Business+¥109 million
Other Businesses-¥4 million
Corporate expenses and adjustments+¥16 million
Year-on-year change in full-year operating income plan
Environmental Equipment-Related Business+¥281 million
Housing Equipment Business-¥35 million
Renewable Energy-Related Business+¥182 million
Other Businesses-¥17 million
Adjustments-¥138 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Solar power ratio23–29% in FY2040
Wind power ratio4–8% in FY2040
Data center market growth rateCAGR 14.9%
New initiatives
- Began operations at 2 green data center sites
- Entry into the Tokyo metropolitan market through a new biodiesel fuel plant in Ibaraki Prefecture
- Commercial sales and delivery of hydrothermal treatment equipment
- Set a ¥5 billion growth investment budget for the next 3 years
Key KPIsA metric the company considers important as a management benchmark.
- Global water business market size¥112 trillion
- Track record in handling solar power plants200 Cases or more
- Number of manufacturing sites5 Location
- Number of sales locations9 Location
- Number of sales agencies31 companies
Segment results
Environmental Equipment-Related Business
Net Sales
12,494 million yen+2.3%
Operating profit
1,131 million yen+20.3%
Housing Equipment Business
Net Sales
11,412 million yen+17.1%
Operating profit
606 million yen+72.9%
Renewable Energy-Related Business
Net Sales
1,546 million yen+24.0%
Operating profit
139 million yen+355.5%
Other Businesses
Net Sales
152 million yen-46.4%
Operating profit
-31 million yen
Medium-term management plan targets
Target fiscal yearFY2027
Net Sales¥53 billion
Operating profit¥1.45 billion
Ordinary income¥1.55 billion
Profit attributable to owners of the parent¥1.1 billion
Financial targets
Equity ratio
Fiscal 2024 results25.7%
FY2027 target31%
ROE
Fiscal 2024 results3.7%
FY2027 target9.7%
ROIC
Fiscal 2024 results3.5%
FY2027 targetAt least 6%
Market Size / Share
Global water business market¥70 trillion in 2020 and ¥112 trillion in 2030
Japanese water business market¥1.9 trillion
Septic tank market shareMaintaining the Company’s share by shipment volume
Number of stores and locations
Number of manufacturing sites5
Number of sales locations9
Number of sales agencies31
Capital expenditures
2,116 million yen
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | 25,606 million yen (YoY +9.0%) |
| Operating profit | 1,093 million yen (YoY +108.2%) |
| Ordinary income | 1,076 million yen (YoY +82.5%) |
| Net income | 556 million yen (YoY +215.0%) |
| Gross Profit Margin | Rate 22.6% / Year-on-year change (points) +0.5 percentage points year on year |
| Operating profit margin | Rate 4.3% / Year-on-year change (points) +2.1 percentage points |
| Selling, general and administrative expenses | 4,705 million yen |
| Full-year earnings forecast | Net Sales 50,000 million yen / Gross profit 11,430 million yen / Selling, general and administrative expenses 9,980 million yen / Operating profit 1,450 million yen / Ordinary income 1,350 million yen / Net income 540 million yen / Capital expenditures 2,116 million yen / Depreciation and amortization 1,200 million yen |
| Progress against full-year forecast | Net Sales 51.2% / Gross profit 50.7% / Selling, general and administrative expenses 47.1% / Operating profit 75.4% / Ordinary income 79.7% / Net income 103.1% |
| Self-assessment against the plan | Finished the interim period at a very strong level |
| Segment results | Environmental Equipment-Related Business Net Sales 12,494 million yen (YoY +2.3%) / Operating profit 1,131 million yen (YoY +20.3%) / Housing Equipment Business Net Sales 11,412 million yen (YoY +17.1%) / Operating profit 606 million yen (YoY +72.9%) / Renewable Energy-Related Business Net Sales 1,546 million yen (YoY +24.0%) / Operating profit 139 million yen (YoY +355.5%) / Other Businesses Net Sales 152 million yen (YoY -46.4%) / Operating profit -31 million yen |
| Breakdown of Factors Affecting the Change | Year-on-year change in first-half operating income Environmental Equipment-Related Business +¥190 million / Housing Equipment Business +¥255 million / Renewable Energy-Related Business +¥109 million / Other Businesses -¥4 million / Corporate expenses and adjustments +¥16 million / Year-on-year change in full-year operating income plan Environmental Equipment-Related Business +¥281 million / Housing Equipment Business -¥35 million / Renewable Energy-Related Business +¥182 million / Other Businesses -¥17 million / Adjustments -¥138 million |
| Key KPIs | Indicator name Global water business market size / Value ¥112 trillion / Year on year against the same period last year Not disclosed, Indicator name Track record in handling solar power plants / Value 200 Cases or more / Year on year against the same period last year Not disclosed, Indicator name Number of manufacturing sites / Value 5 Location / Year on year against the same period last year Not disclosed, Indicator name Number of sales locations / Value 9 Location / Year on year against the same period last year Not disclosed, Indicator name Number of sales agencies / Value 31 companies / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Number of manufacturing sites 5 / Number of sales locations 9 / Number of sales agencies 31 / Number of store openings and closures during the period Not disclosed |
| Assumptions Underlying the Business Outlook | Solar power ratio 23–29% in FY2040 / Wind power ratio 4–8% in FY2040 / Data center market growth rate CAGR 14.9% |
| Medium-term management plan targets | Target fiscal year FY2027 / Net Sales ¥53 billion / Operating profit ¥1.45 billion / Ordinary income ¥1.55 billion / Profit attributable to owners of the parent ¥1.1 billion |
| Financial targets | Equity ratio Fiscal 2024 results 25.7% / FY2027 target 31% / ROE Fiscal 2024 results 3.7% / FY2027 target 9.7% / ROIC Fiscal 2024 results 3.5% / FY2027 target At least 6% |
| Capital expenditures | 2,116 million yen |
| Market Size / Share | Global water business market ¥70 trillion in 2020 and ¥112 trillion in 2030 / Japanese water business market ¥1.9 trillion / Septic tank market share Maintaining the Company’s share by shipment volume |
| New initiatives | Began operations at 2 green data center sites, Entry into the Tokyo metropolitan market through a new biodiesel fuel plant in Ibaraki Prefecture, Commercial sales and delivery of hydrothermal treatment equipment, Set a ¥5 billion growth investment budget for the next 3 years |
Items this document does not state (9)
Results for the three months of the current quarterUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey 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.Revenue growth was driven by progress on large-scale housing equipment projects, groundwater-to-potable-water projects and overseas operations in the environmental equipment business, and the renewable energy business. On the profit side, the housing equipment business benefited from the completion of multiple large-scale projects to which the cost recovery method was applied. In the environmental equipment business, contributions came from increased sales of groundwater-to-potable-water equipment and improved operating losses in the overseas business. In the renewable energy business, contributions came from the start of operations at green data centers and improved profitability in the biodiesel fuel business.
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.