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Financial results presentation5724Asaka Riken Co.,Ltd.Iron and Steel, Nonferrous Metals

Financial Results Presentation for the Fiscal Year Ending September 2026

For the fiscal year ended September 2026, revenue and profit exceeded both the previous fiscal year and the initial forecast because of higher gold prices and increased transaction volume. For the fiscal year ending September 2027, however, the company expects a substantial decline in profit because of higher preparation costs for the LiB recycling business and increased interest expense on borrowings. In addition, total investment in the LiB recycling business was increased to ¥14.5 billion, and the start of mass-production operations was changed to sometime in 2029.

Worth reading
49Recurring
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
145
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending September 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales11,601 Millions of yen+33.6%
Operating profit1,325 Millions of yen+168.8%
Ordinary income1,194 Millions of yen+178.7%
Net income800 Millions of yen+166.7%
Full-year earnings forecast
Fiscal year ending September 2027
Net Sales
13,000 Millions of yen
Operating profit
630 Millions of yen
Ordinary income
50 Millions of yen
Net income
35 Millions of yen
Earnings per share
6.95 Yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Exceeded the earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Higher gold prices and increased transaction volume
  • Lower bullion sales due to an increase in transactions in which gold is returned to customers
  • Higher copper prices and increased sales volume
  • Lower revenue from the quality management systems business
  • Higher allocation burden for indirect departments

The company identifies the factors but does not state the amount attributable to each one.

New initiatives
  • Increase total investment in the LiB recycling business to ¥14.5 billion
  • Change the start of mass-production operations at the Iwaki Plant to sometime in 2029
  • Additional capital investment and an additional ¥6.6 billion raised from financial institutions
Segment results
  • Precious Metals Business
    Net Sales9,818 Millions of yen (YoY +35.1%)
    Segment profit1,088 Millions of yen (YoY +260.5%)
  • Environmental Business
    Net Sales1,576 Millions of yen (YoY +31.1%)
    Segment profit106 Millions of yen (YoY +49.2%)
  • Systems Business
    Net Sales190 Millions of yen (YoY -2.9%)
    Segment profit-28 Millions of yen (YoY -274.0%)
Financial targets
Equity ratio
33.69 %
Debt-to-equity ratio
1.3 Times
Capital expenditures
Fiscal year ending September 2026
3,947 Millions of yen
Forecast for the fiscal year ending September 2027
9,510 Millions of yen
Total Investment in LiB Recycling Business
¥145 100 million
Annual Dividend
Fiscal year ending September 2026
Annual
16 Yen
Interim
4 Yen
End of period
12 Yen
Forecast for the fiscal year ending September 2027
Annual
12 Yen
Interim
4 Yen
End of period
8 Yen
Payout ratio
Fiscal year ending September 2026172.7
TargetAt least 30%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending September 2026
Net Sales11,601 Millions of yen (YoY +33.6%)
Operating profit1,325 Millions of yen (YoY +168.8%)
Ordinary income1,194 Millions of yen (YoY +178.7%)
Net income800 Millions of yen (YoY +166.7%)
Full-year earnings forecastSubject Fiscal year ending September 2027 / Net Sales 13,000 Millions of yen / Operating profit 630 Millions of yen / Ordinary income 50 Millions of yen / Net income 35 Millions of yen / Earnings per share 6.95 Yen
Self-assessment against the planExceeded the earnings forecast
Segment resultsSegment Precious Metals Business / Net Sales 9,818 Millions of yen (YoY +35.1%) / Segment profit 1,088 Millions of yen (YoY +260.5%), Segment Environmental Business / Net Sales 1,576 Millions of yen (YoY +31.1%) / Segment profit 106 Millions of yen (YoY +49.2%), Segment Systems Business / Net Sales 190 Millions of yen (YoY -2.9%) / Segment profit -28 Millions of yen (YoY -274.0%)
Breakdown of Factors Affecting the ChangeFactors Higher gold prices and increased transaction volume / Amount Not disclosed, Factors Lower bullion sales due to an increase in transactions in which gold is returned to customers / Amount Not disclosed, Factors Higher copper prices and increased sales volume / Amount Not disclosed, Factors Lower revenue from the quality management systems business / Amount Not disclosed, Factors Higher allocation burden for indirect departments / Amount Not disclosed
Financial targetsEquity ratio 33.69 % / Debt-to-equity ratio 1.3 Times
Annual DividendFiscal year ending September 2026 Annual 16 Yen / Interim 4 Yen / End of period 12 Yen / Forecast for the fiscal year ending September 2027 Annual 12 Yen / Interim 4 Yen / End of period 8 Yen
Payout ratioFiscal year ending September 2026 172.7 / Target At least 30%
Capital expendituresFiscal year ending September 2026 3,947 Millions of yen / Forecast for the fiscal year ending September 2027 9,510 Millions of yen / Total Investment in LiB Recycling Business ¥145 100 million
New initiativesIncrease total investment in the LiB recycling business to ¥14.5 billion, Change the start of mass-production operations at the Iwaki Plant to sometime in 2029, Additional capital investment and an additional ¥6.6 billion raised from financial institutions
Items this document does not state (16)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesOrders 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.

The increase in revenue and profit for the fiscal year ended September 2026 was due to higher gold prices and increased transaction volume. The decline in profit expected for the fiscal year ending September 2027 is due to higher preparation costs, including labor costs, ahead of the start of operations at the LiB recycling plant, as well as increased personnel hiring, training and DX promotion costs, and higher interest expense on borrowings associated with capital investment. The increase in investment and postponement of the start of operations for the LiB recycling business were due to potential improvements to the mass-production process, soaring equipment and material prices caused by instability in the Middle East, changes to the factory layout, and longer equipment delivery times.

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Financial Results Presentation for the Fiscal Year Ending September 2026 | Asaka Riken Co.,Ltd. (5724) timely disclosure | Komori