Worth reading
72In focus
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
9.8
¥100 million (year-on-year increase in order intake)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFiscal year ending March 2026, third quarter16 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥311 hundred million
Operating profit11 Approximately ¥100 million
Ordinary income¥13.91 hundred million
Results for the three months of the current quarterRevenue of ¥31.1 billion, operating profit of approximately ¥1.1 billion, and ordinary profit of ¥1.391 billion were cited, with an explanation provided for the third quarter on a standalone basis. However, the detailed aggregation periods for each figure are as stated in the materials.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
As of the third quarter, some areas had not yet reached the levels initially assumed. Excluding the impact of the loss of large projects, however, the contract manufacturing business was generally in line with the plan, and the balance sheet was also broadly in line with the plan.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
The benefits of the subsidies are expected to continue through 2027. The company aims to improve AP margins through price revisions and maintenance services, with the longer-term goal of reaching BP's operating profit level. The Thai plant is targeting inventory clearance, the launch of new models, and a return to profitability in 2027. The discussion also covered higher crude oil prices, geopolitical risks, the postponement of projects into a different period, and performance in the next fiscal year.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The revision of selling prices and cost reductions improved results by approximately ¥600 million, while personnel expenses and human capital investment had a negative impact of approximately ¥200 million. The decline in revenue was also described as a negative factor. Amounts for other factors were not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The subsidy rate is up to two-thirds for small and medium-sized enterprises and one-half for large enterprises, with approximately 1.5–2 years from order placement to delivery. Other quantitative assumptions, including those for foreign exchange rates and raw material prices, were not disclosed.New initiatives
The company plans to launch a new model with strategic functions for the Thai market, build a test plant, hire foreign personnel, strengthen accident-prevention measures, revise prices and reduce costs, and expand sales of products eligible for energy-saving subsidies for asphalt plants.Key KPIsA metric the company considers important as a management benchmark.
Order intake of ¥38.2 billion, a year-on-year increase in order intake of ¥980 million, projected order intake of approximately ¥64.5 billion at the fiscal year-end, an expected revenue contribution of approximately ¥1.4 billion from AP subsidies, approximately ¥4 billion in FY2026, approximately ¥8 billion in FY2027, 800–900 operating AP units, and 3,500–3,800 operating BP units, among other figures.Segment results
Qualitative performance commentary was provided for AP, BP, Transportation and Environmental Systems, and Other, but segment-level revenue and profit figures were not disclosed.Medium-term management plan targets
For FY2027, the targets are revenue of ¥60 billion, an operating margin of at least 8%, ROE of 8%, a market capitalization of ¥40 billion, a share price of around ¥1,000, a PBR of 1x, and an annual dividend of ¥50 per share. The planned investment scale through FY2030 is ¥11 billion.Financial targets
The targets are ROE of 8%, an equity spread of approximately 3%, and a PBR of 1x. The materials also state that the share price was ¥877 and market capitalization was approximately ¥35 billion as of February 2026.Market Size / Share
There are approximately 800–900 AP units and approximately 3,500–3,800 BP units in operation nationwide. There are no more than around 10 subsidy-eligible projects annually.Orders received and order backlog
Order intake was ¥38.2 billion, up ¥980 million year on year, with projected order intake of approximately ¥64.5 billion at the fiscal year-end. The order backlog is expected to build further toward the fiscal year-end, but the amount was not disclosed.Number of employees
The company explained that the proportion of foreign employees has been increasing year by year, but the number of employees and the proportion were not disclosed.Capital expenditures
110 On the scale of ¥100 million including planned investments in M&A, production facilities, human capital, and other areas
Annual Dividend
For FY March 2026, an interim dividend of ¥17 per share and a year-end dividend of ¥17 per share are planned, for an expected annual dividend of ¥34. The target for FY2027 is ¥50 per share.Payout ratio
The company intends to maintain a payout ratio of at least 60%.Acquisition of treasury shares
The company referred to its policy of conducting share buybacks, but the acquisition amount, number of shares, and period were not disclosed.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending March 2026, third quarter |
| Net Sales | ¥311 hundred million |
| Operating profit | 11 Approximately ¥100 million |
| Ordinary income | ¥13.91 hundred million |
| Results for the three months of the current quarter | Revenue of ¥31.1 billion, operating profit of approximately ¥1.1 billion, and ordinary profit of ¥1.391 billion were cited, with an explanation provided for the third quarter on a standalone basis. However, the detailed aggregation periods for each figure are as stated in the materials. |
| Self-assessment against the plan | As of the third quarter, some areas had not yet reached the levels initially assumed. Excluding the impact of the loss of large projects, however, the contract manufacturing business was generally in line with the plan, and the balance sheet was also broadly in line with the plan. |
| Segment results | Qualitative performance commentary was provided for AP, BP, Transportation and Environmental Systems, and Other, but segment-level revenue and profit figures were not disclosed. |
| Breakdown of Factors Affecting the Change | The revision of selling prices and cost reductions improved results by approximately ¥600 million, while personnel expenses and human capital investment had a negative impact of approximately ¥200 million. The decline in revenue was also described as a negative factor. Amounts for other factors were not disclosed. |
| Key KPIs | Order intake of ¥38.2 billion, a year-on-year increase in order intake of ¥980 million, projected order intake of approximately ¥64.5 billion at the fiscal year-end, an expected revenue contribution of approximately ¥1.4 billion from AP subsidies, approximately ¥4 billion in FY2026, approximately ¥8 billion in FY2027, 800–900 operating AP units, and 3,500–3,800 operating BP units, among other figures. |
| Number of employees | The company explained that the proportion of foreign employees has been increasing year by year, but the number of employees and the proportion were not disclosed. |
| Assumptions Underlying the Business Outlook | The subsidy rate is up to two-thirds for small and medium-sized enterprises and one-half for large enterprises, with approximately 1.5–2 years from order placement to delivery. Other quantitative assumptions, including those for foreign exchange rates and raw material prices, were not disclosed. |
| Medium-term management plan targets | For FY2027, the targets are revenue of ¥60 billion, an operating margin of at least 8%, ROE of 8%, a market capitalization of ¥40 billion, a share price of around ¥1,000, a PBR of 1x, and an annual dividend of ¥50 per share. The planned investment scale through FY2030 is ¥11 billion. |
| Financial targets | The targets are ROE of 8%, an equity spread of approximately 3%, and a PBR of 1x. The materials also state that the share price was ¥877 and market capitalization was approximately ¥35 billion as of February 2026. |
| Annual Dividend | For FY March 2026, an interim dividend of ¥17 per share and a year-end dividend of ¥17 per share are planned, for an expected annual dividend of ¥34. The target for FY2027 is ¥50 per share. |
| Payout ratio | The company intends to maintain a payout ratio of at least 60%. |
| Acquisition of treasury shares | The company referred to its policy of conducting share buybacks, but the acquisition amount, number of shares, and period were not disclosed. |
| Capital expenditures | 110 On the scale of ¥100 million (including planned investments in M&A, production facilities, human capital, and other areas) |
| Orders received and order backlog | Order intake was ¥38.2 billion, up ¥980 million year on year, with projected order intake of approximately ¥64.5 billion at the fiscal year-end. The order backlog is expected to build further toward the fiscal year-end, but the amount was not disclosed. |
| Market Size / Share | There are approximately 800–900 AP units and approximately 3,500–3,800 BP units in operation nationwide. There are no more than around 10 subsidy-eligible projects annually. |
| Key points of the Q&A | The benefits of the subsidies are expected to continue through 2027. The company aims to improve AP margins through price revisions and maintenance services, with the longer-term goal of reaching BP's operating profit level. The Thai plant is targeting inventory clearance, the launch of new models, and a return to profitability in 2027. The discussion also covered higher crude oil prices, geopolitical risks, the postponement of projects into a different period, and performance in the next fiscal year. |
| New initiatives | The company plans to launch a new model with strategic functions for the Thai market, build a test plant, hire foreign personnel, strengthen accident-prevention measures, revise prices and reduce costs, and expand sales of products eligible for energy-saving subsidies for asphalt plants. |
Items this document does not state (9)
Net incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlook
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.A slow start in the first and second quarters, the postponement of large projects into a different period, the backlash from large projects in the previous fiscal year, and price competition with Chinese manufacturers in Thailand were cited as factors behind the decline in revenue. Meanwhile, NIKKO Messe, subsidies for asphalt plants, strong capital investment in the ready-mixed concrete industry, and the revision of selling prices and cost reductions supported orders and profit.
How to read this page
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