Worth reading
56In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
9.5
% (decline in forecast net income from the prior-year actual)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFiscal 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 SalesActual 16,489; forecast 18,397+11.6%
Operating profitActual 1,942; forecast 1,951+0.5%
Ordinary incomeActual 1,925; forecast 1,938+0.7%
Net incomeActual 1,369; forecast 1,239-9.5%
Full-year earnings forecast
Net Sales18,397 million yen
Operating profit1,951 million yen
Ordinary income1,938 million yen
Net income for the current fiscal year1,239 million yen
EPS¥146.95
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
Factors behind the decline in forecast net income and EPS; use of generative AI; the impact of the situation in the Middle East and supply chains; passing on higher material costs through pricing; the breakdown of upfront investment; the dividend payout ratio; and share buybacksBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Tax credits; IT investment, including the development and implementation of a generative AI platform; hiring, executive development and internal event expenses; and higher personnel expenses. Amounts by factor: not disclosed
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Certain macroeconomic risks have been incorporated. The company does not assume a prolonged extreme risk such as a complete closure of the Strait of Hormuz.New initiatives
Building AI capabilities across the entire workforce; applying AI to routine tasks such as design perspectives, cost estimation and meeting minutes; converting past performance data into knowledge assets through AI training; developing and implementing a generative AI platform; and hiring, executive development and internal eventsKey KPIsA metric the company considers important as a management benchmark.
EPS: actual ¥163.39, forecast ¥146.95, change △10.1%Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Not disclosed. Certain macroeconomic risks have been incorporated, while the company considers the direct impact of geopolitical risks to be minor.Number of employees
Actual 307; planned 353 (including directors and officers)Payout ratio
40%Acquisition of treasury shares
Not disclosed. The company is considering this cautiously, prioritizing the free-float ratio and maintaining liquidity.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | Actual 16,489; forecast 18,397 (YoY +11.6%) |
| Operating profit | Actual 1,942; forecast 1,951 (YoY +0.5%) |
| Ordinary income | Actual 1,925; forecast 1,938 (YoY +0.7%) |
| Net income | Actual 1,369; forecast 1,239 (YoY -9.5%) |
| Full-year earnings forecast | Net Sales 18,397 million yen / Operating profit 1,951 million yen / Ordinary income 1,938 million yen / Net income for the current fiscal year 1,239 million yen / EPS ¥146.95 |
| Breakdown of Factors Affecting the Change | Tax credits; IT investment, including the development and implementation of a generative AI platform; hiring, executive development and internal event expenses; and higher personnel expenses. Amounts by factor: not disclosed |
| Key KPIs | EPS: actual ¥163.39, forecast ¥146.95, change △10.1% |
| Number of employees | Actual 307; planned 353 (including directors and officers) |
| Assumptions Underlying the Business Outlook | Certain macroeconomic risks have been incorporated. The company does not assume a prolonged extreme risk such as a complete closure of the Strait of Hormuz. |
| Risk amount incorporated into the outlook | Not disclosed. Certain macroeconomic risks have been incorporated, while the company considers the direct impact of geopolitical risks to be minor. |
| Payout ratio | 40% |
| Acquisition of treasury shares | Not disclosed. The company is considering this cautiously, prioritizing the free-float ratio and maintaining liquidity. |
| Key points of the Q&A | Factors behind the decline in forecast net income and EPS; use of generative AI; the impact of the situation in the Middle East and supply chains; passing on higher material costs through pricing; the breakdown of upfront investment; the dividend payout ratio; and share buybacks |
| New initiatives | Building AI capabilities across the entire workforce; applying AI to routine tasks such as design perspectives, cost estimation and meeting minutes; converting past performance data into knowledge assets through AI training; developing and implementing a generative AI platform; and hiring, executive development and internal events |
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of stores and locationsMedium-term management plan targetsFinancial targetsAnnual DividendCapital expendituresOrders received and order backlogMarket Size / Share
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.Although the company was able to reduce corporate taxes in the previous and preceding fiscal years by using preferential measures such as the tax credit for promoting wage increases, this fiscal year's budget was calculated conservatively using the standard corporate tax rate without factoring in tax incentives. The company also explained that the planned increase in headcount from 307 to 353 means higher personnel expenses will be the largest factor weighing on profit.
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.