Worth reading
50Recurring
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
14.7
Year-on-year revenue growth (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending May 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,544 million+14.7%
Operating profit¥375 million+64.9%
Ordinary income¥396 million+66.0%
Net income¥261 million+56.5%
Gross Profit Margin
Rate16.0%
Year-on-year change (points)+0.6 percentage points
Operating profit margin
Rate6.8%
Year-on-year change (points)+2.1 percentage points
Results for the three months of the current quarter
Net Sales¥5,544 million
Operating profit¥375 million
Ordinary income¥396 million
Quarterly net income¥261 million
Full-year earnings forecast
Net Sales¥22,500 million
Gross profit¥3,360 million
Operating profit¥1,373 million
Ordinary income¥1,426 million
Net income for the current fiscal year¥950 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 Sales24.6%
Gross profit26.5%
Operating profit27.4%
Ordinary income27.8%
Net income for the current fiscal year27.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing smoothlyBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Some projects were brought forward from their original schedules
- Strong orders for FTTH projects
- Strong orders for indoor communications equipment projects
- Strong orders for disaster prevention administrative radio system projects
- Increase in routine transactions
- Passing higher procurement costs on to selling prices
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The policy is to pass fluctuations in foreign exchange rates and copper prices on to selling prices to the extent possible. The general time lag before passing through price increases is said to be approximately six months to one year, but the company has not disclosed its own time lag.New initiatives
- Plan to construct and relocate the Okinawa Sales Office. Construction of the new office building is scheduled to begin in June 2026, with completion, relocation and the start of operations planned within 2027.
- Plan to construct and relocate the Okayama Sales Office. The site for the new office is scheduled to be acquired in November 2026.
- Strengthening sales of communications infrastructure and disaster prevention administrative radio system products to win projects driven by event demand
- Appointment of 1 female outside director
Key KPIsA metric the company considers important as a management benchmark.
- Fiber-optic household coverage target99.9%
- 5G population coverage targets95% nationwide, 97% nationwide, 99% nationwide
- Regional data center locationsA dozen or more locations nationwide
- Undersea cable encircling JapanTo be completed by the end of fiscal 2025
Segment results
Net sales and gross profit are provided by business category and product category. Year-on-year changes by business category were +11.9% for the East Japan block, +5.9% for the West Japan block, +15.9% for the Shikoku and Kyushu block, and +19.6% for the Tokai and Hokuriku block. By product category, the figures included +18.6% for cables, +4.5% for materials and +25.6% for equipment. Individual sales and profit figures cannot be determined from the body text.Annual Dividend
Annual dividend amount¥72.00
Payout ratio
40.4%| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending May 2027 |
| Net Sales | ¥5,544 million (YoY +14.7%) |
| Operating profit | ¥375 million (YoY +64.9%) |
| Ordinary income | ¥396 million (YoY +66.0%) |
| Net income | ¥261 million (YoY +56.5%) |
| Gross Profit Margin | Rate 16.0% / Year-on-year change (points) +0.6 percentage points |
| Operating profit margin | Rate 6.8% / Year-on-year change (points) +2.1 percentage points |
| Results for the three months of the current quarter | Net Sales ¥5,544 million / Operating profit ¥375 million / Ordinary income ¥396 million / Quarterly net income ¥261 million |
| Full-year earnings forecast | Net Sales ¥22,500 million / Gross profit ¥3,360 million / Operating profit ¥1,373 million / Ordinary income ¥1,426 million / Net income for the current fiscal year ¥950 million |
| Progress against full-year forecast | Net Sales 24.6% / Gross profit 26.5% / Operating profit 27.4% / Ordinary income 27.8% / Net income for the current fiscal year 27.6% |
| Self-assessment against the plan | Progressing smoothly |
| Segment results | Net sales and gross profit are provided by business category and product category. Year-on-year changes by business category were +11.9% for the East Japan block, +5.9% for the West Japan block, +15.9% for the Shikoku and Kyushu block, and +19.6% for the Tokai and Hokuriku block. By product category, the figures included +18.6% for cables, +4.5% for materials and +25.6% for equipment. Individual sales and profit figures cannot be determined from the body text. |
| Breakdown of Factors Affecting the Change | Some projects were brought forward from their original schedules, Strong orders for FTTH projects, Strong orders for indoor communications equipment projects, Strong orders for disaster prevention administrative radio system projects, Increase in routine transactions, Passing higher procurement costs on to selling prices |
| Key KPIs | 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 targets / Value 95% nationwide, 97% nationwide, 99% nationwide / Year on year against the same period last year Not disclosed, 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 Undersea cable encircling Japan / Value To be completed by the end of fiscal 2025 / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | The policy is to pass fluctuations in foreign exchange rates and copper prices on to selling prices to the extent possible. The general time lag before passing through price increases is said to be approximately six months to one year, but the company has not disclosed its own time lag. |
| Annual Dividend | Annual dividend amount ¥72.00 / Interim Not disclosed / End of period Not disclosed |
| Payout ratio | 40.4% |
| New initiatives | Plan to construct and relocate the Okinawa Sales Office. Construction of the new office building is scheduled to begin in June 2026, with completion, relocation and the start of operations planned within 2027., Plan to construct and relocate the Okayama Sales Office. The site for the new office is scheduled to be acquired in November 2026., Strengthening sales of communications infrastructure and disaster prevention administrative radio system products to win projects driven by event demand, Appointment of 1 female outside director |
Items this document does not state (12)
Selling, general and administrative expensesUnit 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.Some projects were brought forward from their original schedules, orders for FTTH, indoor communications equipment and disaster prevention administrative radio systems were strong, and routine transactions increased. The gross profit margin improved as the company continued to pass higher procurement costs on to selling prices, while operating profit increased as a result of the higher gross profit margin.
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.