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Earnings presentation7021NITCHITSU CO.,LTD.Machinery

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue, operating profit and net income declined due to the delayed recovery in semiconductor-related demand in the Resources-Related Business and higher costs in the Machinery-Related Business. Ordinary profit increased on higher dividend income and other factors. For the fiscal year ending March 2027, the Company forecasts operating profit of ¥230 million and annual dividends of ¥30 per share.

Worth reading
45Recurring
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
-469
JPY million
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales9,381 JPY million-4.8%
Operating profit220 JPY million-18.2%
Ordinary income218 JPY million+0.9%
Net income194 JPY million-19.6%
Operating profit margin2.4 %
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
8,800 JPY million
Operating profit
230 JPY million
Net income for the current fiscal year
120 JPY million
ROE
1 %
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Delayed recovery in demand, continued resilience in ship-hull blocks, continued weakness in hatch covers, and securing a certain level of orders in the heavy electrical equipment and steelmaking machinery businesses
New initiatives
  • Establishment of a new automated steel-processing line at the Matsuura Plant
  • Upgrade of the jet mill at the Emukae Plant
  • Development of a new office building
  • Expansion of recruitment capabilities
  • Introduction of a company-leased housing program and a scholarship repayment assistance program
  • Increase in the employee stock ownership plan incentive rate from 5% to 10%
  • Introduction of a restricted stock incentive plan for the employee stock ownership plan
  • Increase in the number of independent outside directors, appointment of female directors, and review of the executive officer system
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA886 JPY million
    Year on year against the same period last yearExceeded the previous fiscal year's ¥808 million
  • Underlying operating cash flow818 JPY million
    Year on year against the same period last yearRemained at a high level for the second consecutive year
  • Share price (fiscal year-end)2,228 JPY
    Year on year against the same period last yearRose from ¥1,710 in the previous fiscal year
  • Trading volume (full-year total)1,491,500 Shares
    Year on year against the same period last yearIncreased from 491,700 shares in the previous fiscal year
  • Net assets per share (fiscal year)6,233 JPY
    Year on year against the same period last yearIncreased from ¥5,717 in the previous fiscal year
  • PBR (fiscal year-end)0.36 times
    Year on year against the same period last yearRose from 0.30x in the previous fiscal year
  • ROE1.7 %
    Year on year against the same period last yearDeclined from 2.2% in the previous fiscal year
Segment results
  • Machinery-Related Business
    Net Sales6,492 JPY million (YoY -0.5%)
    Operating profit108 JPY million (YoY -49.1%)
  • Resource-related business
    Net Sales1,948 JPY million (YoY -5.5%)
    Operating profit51 JPY million
  • Real Estate Business
    Net Sales143 JPY million (YoY +2.2%)
    Operating profit32 JPY million (YoY -4.5%)
  • Materials-related business
    Net Sales797 JPY million (YoY -29.1%)
    Operating profit28 JPY million (YoY -14.2%)
Medium-term management plan targets
Plan nameShin Nitchitsu 2025
Target fiscal yearFY2025
Target value
Net Sales9,700
Operating profit500
Operating Margin5.2
Net income for the current fiscal year300
ROE3
ROIC3
Equity ratio70
Actual results
Net Sales9,381
Operating profit220
Operating Margin2.4
Net income for the current fiscal year194
ROE1.7
ROIC1.3
Equity ratio71
Financial targets
  • ROE
    Target value5% in fiscal 2027, 8% in fiscal 2030
  • ROIC
    Target value5% in fiscal 2027
  • Equity ratio
    Actual value71%
Capital expenditures
¥3,220 million three-year cumulative total, on a completed basis
Annual Dividend
Annual dividend amount¥30 per share
Interim Dividend¥15 per share
Payout ratio
30 %
Total payout ratio
40 %
Acquisition of treasury shares
Actual purchases¥199 million accumulated over 3 years
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales9,381 JPY million (YoY -4.8%)
Operating profit220 JPY million (YoY -18.2%)
Ordinary income218 JPY million (YoY +0.9%)
Net income194 JPY million (YoY -19.6%)
Operating profit margin2.4 %
Full-year earnings forecastFiscal Period Covered Fiscal year ending March 2027 / Net Sales 8,800 JPY million / Operating profit 230 JPY million / Net income for the current fiscal year 120 JPY million / ROE 1 %
Segment resultsSegment Machinery-Related Business / Net Sales 6,492 JPY million (YoY -0.5%) / Operating profit 108 JPY million (YoY -49.1%), Segment Resource-related business / Net Sales 1,948 JPY million (YoY -5.5%) / Operating profit 51 JPY million, Segment Real Estate Business / Net Sales 143 JPY million (YoY +2.2%) / Operating profit 32 JPY million (YoY -4.5%), Segment Materials-related business / Net Sales 797 JPY million (YoY -29.1%) / Operating profit 28 JPY million (YoY -14.2%)
Key KPIsEBITDA 886 JPY million, Underlying operating cash flow 818 JPY million, Share price (fiscal year-end) 2,228 JPY, Trading volume (full-year total) 1,491,500 Shares, Net assets per share (fiscal year) 6,233 JPY, PBR (fiscal year-end) 0.36 times, ROE 1.7 %
Assumptions Underlying the Business OutlookDelayed recovery in demand, continued resilience in ship-hull blocks, continued weakness in hatch covers, and securing a certain level of orders in the heavy electrical equipment and steelmaking machinery businesses
Medium-term management plan targetsPlan name Shin Nitchitsu 2025 / Target fiscal year FY2025 / Target value Net Sales 9,700 / Operating profit 500 / Operating Margin 5.2 / Net income for the current fiscal year 300 / ROE 3 / ROIC 3 / Equity ratio 70 / Actual results Net Sales 9,381 / Operating profit 220 / Operating Margin 2.4 / Net income for the current fiscal year 194 / ROE 1.7 / ROIC 1.3 / Equity ratio 71
Financial targetsIndicator ROE / Target value 5% in fiscal 2027, 8% in fiscal 2030, Indicator ROIC / Target value 5% in fiscal 2027, Indicator Equity ratio / Actual value 71%
Annual DividendAnnual dividend amount ¥30 per share / Interim Dividend ¥15 per share / Year-end dividend Not disclosed
Payout ratio30 %
Acquisition of treasury sharesActual purchases ¥199 million accumulated over 3 years / Buyback limit Not disclosed / Period Not disclosed
Capital expenditures¥3,220 million (three-year cumulative total, on a completed basis)
New initiativesEstablishment of a new automated steel-processing line at the Matsuura Plant, Upgrade of the jet mill at the Emukae Plant, Development of a new office building, Expansion of recruitment capabilities, Introduction of a company-leased housing program and a scholarship repayment assistance program, Increase in the employee stock ownership plan incentive rate from 5% to 10%, Introduction of a restricted stock incentive plan for the employee stock ownership plan, Increase in the number of independent outside directors, appointment of female directors, and review of the executive officer system
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

Revenue declined because semiconductor-related demand in the Resources-Related Business did not achieve a full-scale recovery. Operating profit declined due to unprofitable construction projects and transportation costs in the Machinery-Related Business, as well as higher costs associated with establishing a new automated steel-processing line. Net income declined due to lower gains on the sale of policy-held shares and the recognition of losses on the disposal of fixed assets. Ordinary profit increased due to higher dividend income and lower management costs for closed and abandoned mines.

How to read this page

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Earnings Presentation Materials for the Fiscal Year Ending March 2026 | NITCHITSU CO.,LTD. (7021) timely disclosure | Komori