Worth reading
51Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
2.4
Year-on-year revenue growth (%)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportThird quarter of the fiscal year ending May 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥17,050 million+2.4%
Operating profit¥1,076 million+13.0%
Ordinary income¥1,103 million+13.6%
Net income¥756 million+17.1%
Gross Profit Margin
Rate14.8%
Year-on-year change (points)0.7
Operating profit margin
Rate6.3%
Year-on-year change (points)0.6
Results for the three months of the current quarter
Net Sales
¥5,069 million
Ordinary income
¥243 million
Full-year earnings forecast
Net Sales
¥21,260 million
Gross profit
¥3,173 million
Operating profit
¥1,202 million
Ordinary income
¥1,233 million
Net income for the current fiscal year
¥830 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales80.2%
Gross profit79.6%
Operating profit89.5%
Ordinary income89.5%
Net income for the current fiscal year91.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress is generally in line with the plan / Progress has been strongAssumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchangeSome products are procured overseas. The policy is to pass on cost increases or decreases resulting from exchange-rate movements to selling prices to the extent possible.
Copper PricesThe policy is to pass on fluctuations in procurement prices to selling prices to the extent possible.
Time lag in passing on price increasesGenerally around six months to one year. However, the Company has not disclosed its time lag.
New initiatives
- Plan to construct and relocate the Okinawa Sales Office (construction scheduled to begin in 2026, with completion, relocation, and commencement of operations scheduled within 2027)
- Activities to secure projects involving disaster-prevention administrative radio systems, digital fire communications equipment, and CATV station center equipment, among others
- Strengthening the sales structure and logistics network and developing underserved areas
Key KPIsA metric the company considers important as a management benchmark.
- Tokyo Sales Office Revenue Index144 FY ending May 2023 = 100Year on year against the same period last year44% increase from the fiscal year ending May 2023
- Fiber-optic household coverage target99.9 %
- 5G population coverage95% at the end of FY2023, 97% at the end of FY2025, and 99% at the end of FY2030Year on year against the same period last yearBy target year
- Regional data center locationsA dozen or more locations nationwide
- Submarine cable completion targetBy the end of FY2025
Segment results
By business categoryYear-on-year changes in revenue are provided for the East Japan Block, West Japan Block, Shikoku and Kyushu Block, and Tokai and Hokuriku Block. The figures are 0.2%, △7.7%, △3.5%, and 15.4%, respectively.
By product categoryYear-on-year changes in revenue are provided for cables, materials, equipment, and construction. The figures are 0.6%, 6.8%, △2.7%, and the construction figure in the chart is Not disclosed, respectively.
Annual Dividend
Annual dividend per share¥63.00
Payout ratio
40.5%| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Third quarter of the fiscal year ending May 2026 |
| Net Sales | ¥17,050 million (YoY +2.4%) |
| Operating profit | ¥1,076 million (YoY +13.0%) |
| Ordinary income | ¥1,103 million (YoY +13.6%) |
| Net income | ¥756 million (YoY +17.1%) |
| Gross Profit Margin | Rate 14.8% / Year-on-year change (points) 0.7 |
| Operating profit margin | Rate 6.3% / Year-on-year change (points) 0.6 |
| Results for the three months of the current quarter | Net Sales ¥5,069 million / Ordinary income ¥243 million |
| Full-year earnings forecast | Net Sales ¥21,260 million / Gross profit ¥3,173 million / Operating profit ¥1,202 million / Ordinary income ¥1,233 million / Net income for the current fiscal year ¥830 million |
| Progress against full-year forecast | Net Sales 80.2% / Gross profit 79.6% / Operating profit 89.5% / Ordinary income 89.5% / Net income for the current fiscal year 91.2% |
| Self-assessment against the plan | Progress is generally in line with the plan / Progress has been strong |
| Segment results | By business category Year-on-year changes in revenue are provided for the East Japan Block, West Japan Block, Shikoku and Kyushu Block, and Tokai and Hokuriku Block. The figures are 0.2%, △7.7%, △3.5%, and 15.4%, respectively. / By product category Year-on-year changes in revenue are provided for cables, materials, equipment, and construction. The figures are 0.6%, 6.8%, △2.7%, and the construction figure in the chart is Not disclosed, respectively. |
| Key KPIs | Indicator name Tokyo Sales Office Revenue Index / Value 144 FY ending May 2023 = 100 / Year on year against the same period last year 44% increase from the fiscal year ending May 2023, Indicator name Fiber-optic household coverage target / Value 99.9 % / Year on year against the same period last year Not disclosed, Indicator name 5G population coverage / Value 95% at the end of FY2023, 97% at the end of FY2025, and 99% at the end of FY2030 / Year on year against the same period last year By target year, Indicator name Regional data center locations / Value A dozen or more locations nationwide / Year on year against the same period last year Not disclosed, Indicator name Submarine cable completion target / Value By the end of FY2025 / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Foreign exchange Some products are procured overseas. The policy is to pass on cost increases or decreases resulting from exchange-rate movements to selling prices to the extent possible. / Copper Prices The policy is to pass on fluctuations in procurement prices to selling prices to the extent possible. / Time lag in passing on price increases Generally around six months to one year. However, the Company has not disclosed its time lag. |
| Annual Dividend | Annual dividend per share ¥63.00 / Interim Not disclosed / End of period Not disclosed |
| Payout ratio | 40.5% |
| New initiatives | Plan to construct and relocate the Okinawa Sales Office (construction scheduled to begin in 2026, with completion, relocation, and commencement of operations scheduled within 2027), Activities to secure projects involving disaster-prevention administrative radio systems, digital fire communications equipment, and CATV station center equipment, among others, Strengthening the sales structure and logistics network and developing underserved areas |
Items this document does not state (13)
Selling, general and administrative expensesBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders 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.This was attributable to some projects being brought forward from their original schedules, as well as orders for large-scale fire communications equipment, disaster-prevention administrative radio systems, and outdoor communications equipment projects. The improvement in gross profit margin was also attributed in part to progress in passing higher procurement costs on to selling prices.
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.