Worth reading
35Immaterial
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
3
% (year-on-year decrease in ordinary profit)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFourth quarter of the fiscal year ended March 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit13.5 Hundreds of millions of yen+1.5%
Ordinary incomeAmount not stated-3.0%
Full-year earnings forecast
Operating profit
13.5 Hundreds of millions of yen+1.5%
Ordinary income
Amount not stated-3.0%
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
- Issues Factors behind the decline in earnings for the fiscal year ending March 2027 / Answer Despite higher revenue, ordinary profit is expected to decline 3.0% year on year. The primary factor is lower subsidy income associated with the construction of the new EMS plant, while operating profit is planned to increase 1.5% year on year to ¥1.35 billion.
- Issues Factors weighing on profits and geopolitical risks / Answer The company cited raw material and logistics costs, employee training, depreciation and fixed costs for the new plant, and costs related to upgrading the management structure. It also anticipates higher crude oil, component, and logistics costs due to the situation in the Middle East, as well as production adjustments by customers.
- Issues Business Growth Strategy / Answer The company will strengthen high value-added areas, including EMS, social support, and the external sales of educational content. M&A opportunities are being considered across three areas: manufacturing, education, and after-sales services.
- Issues Human resources and technology / Answer The number of hires is a bottleneck to growth. The company will focus on developing talent in electrical and mechanical engineering, semiconductor-related fields, manufacturing equipment maintenance, and AI implementation and deployment.
- Issues Construction Boarding / Answer The company will expand external sales and targets securing contracts with 150 companies over the next 3 years.
- Issues Measures to address a PBR below 1x / Answer The company will pursue an ROE of 15% or higher, improve asset turnover, enhance the value added of its EMS business, develop growth areas, and return profits to shareholders with a target consolidated dividend payout ratio of 30%.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower subsidy income associated with the construction of the new EMS plant
- Rising raw-material and logistics costs
- Front-loaded investment in human capital through training-oriented staffing
- Higher depreciation and fixed costs following the start-up of the new plant
- Costs related to upgrading the management structure
The company identifies the factors but does not state the amount attributable to each one.
New initiatives
- Expansion of the end-to-end EMS service “WILL ONE”
- Start-up of the new EMS plant
- Expansion into GX and automation, including energy storage battery maintenance and robot implementation support
- Increase the proportion of foreign engineers and strengthen the company’s recruitment website
- Expansion of external sales of Construction Boarding
- Strengthening external sales of educational content
Key KPIsA metric the company considers important as a management benchmark.
- Target number of Construction Boarding contracts150 companies
- ROE target15 % or higher
- Target consolidated dividend payout ratio30 %
- Number of new graduate and second-career graduate hiresApproximately 20% or more of the number of engineers employed
Medium-term management plan targets
Plan nameFuture Vision 2035
Target fiscal year2,035
Net Sales
1,000 Hundreds of millions of yen
Ordinary income
50 Hundreds of millions of yen
Financial targets
ROE15% or higher
Equity ratioMaintain a stable level
Payout ratio
Consolidated payout ratio of 30% as a guideline| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fourth quarter of the fiscal year ended March 2026 |
| Operating profit | 13.5 Hundreds of millions of yen (YoY +1.5%) |
| Ordinary income | 非開示 (YoY -3.0%) |
| Full-year earnings forecast | Operating profit 13.5 Hundreds of millions of yen (YoY +1.5%) / Ordinary income 非開示 (YoY -3.0%) |
| Breakdown of Factors Affecting the Change | Factors Lower subsidy income associated with the construction of the new EMS plant / Amount Not disclosed, Factors Rising raw-material and logistics costs / Amount Not disclosed, Factors Front-loaded investment in human capital through training-oriented staffing / Amount Not disclosed, Factors Higher depreciation and fixed costs following the start-up of the new plant / Amount Not disclosed, Factors Costs related to upgrading the management structure / Amount Not disclosed |
| Key KPIs | Indicator name Target number of Construction Boarding contracts / Value 150 companies / Year on year against the same period last year Not disclosed, Indicator name ROE target / Value 15 % or higher / Year on year against the same period last year Not disclosed, Indicator name Target consolidated dividend payout ratio / Value 30 % / Year on year against the same period last year Not disclosed, Indicator name Number of new graduate and second-career graduate hires / Value Approximately 20% or more of the number of engineers employed / Year on year against the same period last year Not disclosed |
| Medium-term management plan targets | Plan name Future Vision 2035 / Target fiscal year 2,035 / Net Sales 1,000 Hundreds of millions of yen / Ordinary income 50 Hundreds of millions of yen |
| Financial targets | ROE 15% or higher / Equity ratio Maintain a stable level |
| Payout ratio | Consolidated payout ratio of 30% as a guideline |
| Key points of the Q&A | Issues Factors behind the decline in earnings for the fiscal year ending March 2027 / Answer Despite higher revenue, ordinary profit is expected to decline 3.0% year on year. The primary factor is lower subsidy income associated with the construction of the new EMS plant, while operating profit is planned to increase 1.5% year on year to ¥1.35 billion., Issues Factors weighing on profits and geopolitical risks / Answer The company cited raw material and logistics costs, employee training, depreciation and fixed costs for the new plant, and costs related to upgrading the management structure. It also anticipates higher crude oil, component, and logistics costs due to the situation in the Middle East, as well as production adjustments by customers., Issues Business Growth Strategy / Answer The company will strengthen high value-added areas, including EMS, social support, and the external sales of educational content. M&A opportunities are being considered across three areas: manufacturing, education, and after-sales services., Issues Human resources and technology / Answer The number of hires is a bottleneck to growth. The company will focus on developing talent in electrical and mechanical engineering, semiconductor-related fields, manufacturing equipment maintenance, and AI implementation and deployment., Issues Construction Boarding / Answer The company will expand external sales and targets securing contracts with 150 companies over the next 3 years., Issues Measures to address a PBR below 1x / Answer The company will pursue an ROE of 15% or higher, improve asset turnover, enhance the value added of its EMS business, develop growth areas, and return profits to shareholders with a target consolidated dividend payout ratio of 30%. |
| New initiatives | Expansion of the end-to-end EMS service “WILL ONE”, Start-up of the new EMS plant, Expansion into GX and automation, including energy storage battery maintenance and robot implementation support, Increase the proportion of foreign engineers and strengthen the company’s recruitment website, Expansion of external sales of Construction Boarding, Strengthening external sales of educational content |
Items this document does not state (19)
Net SalesNet incomeGross 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 locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendAcquisition of treasury sharesCapital 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.The decline in ordinary profit is attributable to lower subsidy income associated with the construction of the new EMS plant. The company cited demand for EMS services driven by reshoring to Japan, the shift toward higher value-added offerings, and the expansion of its social support and education businesses as drivers of higher operating profit. At the same time, it explained that raw material and logistics costs, the hiring and training of new graduates, depreciation and fixed costs for the new plant, and costs related to upgrading its management structure would weigh on profits.
How to read this page
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