Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
-2069
¥ million (year-on-year change in net sales)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales12,742 Millions of yen-14.0%
Operating profit802 Millions of yen-51.5%
Ordinary income884 Millions of yen-47.5%
Net income519 Millions of yen-52.7%
Selling, general and administrative expenses2,358 Millions of yen
Results for the three months of the current quarterRevenue of ¥12,742 million, gross profit of ¥3,160 million, operating income of ¥802 million, ordinary income of ¥884 million, and net income attributable to owners of the parent of ¥519 million. These figures represent the first quarter on a standalone basis.
Full-year earnings forecast
Net Sales
60,000 Millions of yen
Gross profit
15,560 Millions of yen
Selling, general and administrative expenses
8,960 Millions of yen
Operating profit
6,600 Millions of yen
Ordinary income
6,800 Millions of yen
Profit attributable to owners of the parent
4,380 Millions of yen
ROE
11.9 %
EPS
¥139.5
DPS
¥70
Payout ratio
50.2 %
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。Progress against the plan for重点成長事業 was 22%. Progress against the full-year forecasts for each consolidated line item was Not disclosed.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance is progressing in line with the full-year plan and as expected.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Revenue impact from the completion of the steel mill system refresh-7 Hundreds of millions of yen
- Revenue contribution from winning new projects after completion of the refresh in the steel business1.9 Hundreds of millions of yen
- Revenue contribution from the Digital Manufacturing, ERP, and Platform businesses0.5 Hundreds of millions of yen
- Investment in sales strategy-0.9 Hundreds of millions of yen
- Increase in labor costs accompanying the upfront expansion of personnel for growth businesses-1.9 Hundreds of millions of yen
- Increase in recruitment and training expenses and internal system costs-1 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The forecast assumes expansion of businesses serving customers outside the Group, centered on重点成長事業, lower revenue in the steel business, and increases in selling expenses, recruitment and training expenses, and internal system costs. Numerical assumptions for foreign exchange rates, raw material prices, and other factors were Not disclosed.New initiatives
- Investment in sales strategy to expand orders received in the future
- Upfront expansion of personnel for growth businesses
- Release of Ver.1.3, a new version of the cloud-based web procurement system Prociec
- Obtaining JIIMA certification for the electronic bookkeeping system DataDelivery
- Expansion of businesses serving customers outside the Group and external collaboration in 重点成長事業
Key KPIsA metric the company considers important as a management benchmark.
- Orders received10,704 Millions of yenYear on year against the same period last year-12.7%
- Order backlog21,026 Millions of yenYear on year against the same period last year-9.9%
- ROE1.5 %Year-on-year change-1.8Unit for year-on-year changePoints
- EPS¥16.5Year-on-year change-18.4Unit for year-on-year change¥
Segment results
- Digital ManufacturingNet Sales566 Millions of yen
- ERP SolutionsNet Sales945 Millions of yen
- Smart SolutionsNet Sales1,374 Millions of yen
- Industrial SolutionsNet Sales1,906 Millions of yen
- Iron and SteelNet Sales3,892 Millions of yen
- PlatformNet Sales2,443 Millions of yen
- SubsidiariesNet Sales1,347 Millions of yen
Medium-term management plan targets
The sales target for 重点成長事業 is ¥23.0 billion for fiscal 2027. Actual sales in the first quarter of fiscal 2026 were ¥5.5 billion, representing 22% progress against the plan.Financial targets
The forecast ROE for the fiscal year ending March 2027 is 11.9%. Target values for other measures, including ROE, ROIC, the D/E ratio, and the equity ratio, were Not disclosed.Orders received and order backlog
Orders received
10,704 Millions of yen
Order backlog
21,026 Millions of yen
Annual Dividend
For the fiscal year ended March 2026, the annual dividend was ¥68 per share, comprising an interim dividend of ¥28 and a year-end dividend of ¥40. The forecast annual dividend for the fiscal year ending March 2027 is ¥70 per share; the interim and year-end breakdown was Not disclosed.Payout ratio
The dividend payout ratio was 50.1% for the fiscal year ended March 2026 and is forecast at 50.2% for the fiscal year ending March 2027. The policy under the current medium-term management plan is to maintain a dividend payout ratio of approximately 50%.| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 12,742 Millions of yen (YoY -14.0%) |
| Operating profit | 802 Millions of yen (YoY -51.5%) |
| Ordinary income | 884 Millions of yen (YoY -47.5%) |
| Net income | 519 Millions of yen (YoY -52.7%) |
| Selling, general and administrative expenses | 2,358 Millions of yen |
| Results for the three months of the current quarter | Revenue of ¥12,742 million, gross profit of ¥3,160 million, operating income of ¥802 million, ordinary income of ¥884 million, and net income attributable to owners of the parent of ¥519 million. These figures represent the first quarter on a standalone basis. |
| Full-year earnings forecast | Net Sales 60,000 Millions of yen / Gross profit 15,560 Millions of yen / Selling, general and administrative expenses 8,960 Millions of yen / Operating profit 6,600 Millions of yen / Ordinary income 6,800 Millions of yen / Profit attributable to owners of the parent 4,380 Millions of yen / ROE 11.9 % / EPS ¥139.5 / DPS ¥70 / Payout ratio 50.2 % |
| Progress against full-year forecast | Progress against the plan for重点成長事業 was 22%. Progress against the full-year forecasts for each consolidated line item was Not disclosed. |
| Self-assessment against the plan | Performance is progressing in line with the full-year plan and as expected. |
| Segment results | Segment Digital Manufacturing / Net Sales 566 Millions of yen / yoy_pct 10.4, Segment ERP Solutions / Net Sales 945 Millions of yen / yoy_pct 5.2, Segment Smart Solutions / Net Sales 1,374 Millions of yen / yoy_pct -0.9, Segment Industrial Solutions / Net Sales 1,906 Millions of yen / yoy_pct 1, Segment Iron and Steel / Net Sales 3,892 Millions of yen / yoy_pct -42.2, Segment Platform / Net Sales 2,443 Millions of yen / yoy_pct 3.2, Segment Subsidiaries / Net Sales 1,347 Millions of yen / yoy_pct 0.6 |
| Breakdown of Factors Affecting the Change | Factors Revenue impact from the completion of the steel mill system refresh / Amount -7 Hundreds of millions of yen, Factors Revenue contribution from winning new projects after completion of the refresh in the steel business / Amount 1.9 Hundreds of millions of yen, Factors Revenue contribution from the Digital Manufacturing, ERP, and Platform businesses / Amount 0.5 Hundreds of millions of yen, Factors Investment in sales strategy / Amount -0.9 Hundreds of millions of yen, Factors Increase in labor costs accompanying the upfront expansion of personnel for growth businesses / Amount -1.9 Hundreds of millions of yen, Factors Increase in recruitment and training expenses and internal system costs / Amount -1 Hundreds of millions of yen |
| Key KPIs | Indicator name Orders received / Value 10,704 Millions of yen / Year on year against the same period last year -12.7 Millions of yen, Indicator name Order backlog / Value 21,026 Millions of yen / Year on year against the same period last year -9.9 Millions of yen, Indicator name ROE / Value 1.5 % / Year-on-year change -1.8 % / Unit for year-on-year change Points, Indicator name EPS / Value ¥16.5 / Year-on-year change ¥-18.4 / Unit for year-on-year change ¥ |
| Assumptions Underlying the Business Outlook | The forecast assumes expansion of businesses serving customers outside the Group, centered on重点成長事業, lower revenue in the steel business, and increases in selling expenses, recruitment and training expenses, and internal system costs. Numerical assumptions for foreign exchange rates, raw material prices, and other factors were Not disclosed. |
| Medium-term management plan targets | The sales target for 重点成長事業 is ¥23.0 billion for fiscal 2027. Actual sales in the first quarter of fiscal 2026 were ¥5.5 billion, representing 22% progress against the plan. |
| Financial targets | The forecast ROE for the fiscal year ending March 2027 is 11.9%. Target values for other measures, including ROE, ROIC, the D/E ratio, and the equity ratio, were Not disclosed. |
| Annual Dividend | For the fiscal year ended March 2026, the annual dividend was ¥68 per share, comprising an interim dividend of ¥28 and a year-end dividend of ¥40. The forecast annual dividend for the fiscal year ending March 2027 is ¥70 per share; the interim and year-end breakdown was Not disclosed. |
| Payout ratio | The dividend payout ratio was 50.1% for the fiscal year ended March 2026 and is forecast at 50.2% for the fiscal year ending March 2027. The policy under the current medium-term management plan is to maintain a dividend payout ratio of approximately 50%. |
| Orders received and order backlog | Orders received 10,704 Millions of yen / Order backlog 21,026 Millions of yen |
| New initiatives | Investment in sales strategy to expand orders received in the future, Upfront expansion of personnel for growth businesses, Release of Ver.1.3, a new version of the cloud-based web procurement system Prociec, Obtaining JIIMA certification for the electronic bookkeeping system DataDelivery, Expansion of businesses serving customers outside the Group and external collaboration in 重点成長事業 |
Items this document does not state (10)
Gross Profit MarginOperating profit marginUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresMarket 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.In the steel business, revenue declined following the completion of the steel mill system refresh. In addition, investments in sales strategy, the upfront expansion of personnel for growth businesses, recruitment and training expenses, and internal system costs increased, putting downward pressure on profit.
How to read this page
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