Miroku Jyoho Service FY26 Net Profit Jumps 23% to ¥5.41 Billion on Record ¥48.9 Billion Sales; Dividend Raised to ¥65

Miroku Jyoho Service Co., Ltd. (TSE: 9928), commonly known as MJS, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Net sales rose 6.0% year-on-year to a record ¥48,926 million, operating profit rose 6.2% to ¥6,677 million, and ordinary profit climbed 7.5% to ¥6,870 million. Net profit attributable to owners of the parent jumped 23.4% to ¥5,406 million from ¥4,381 million — far outpacing top-line growth — lifting basic EPS to ¥180.56 from ¥146.40 and diluted EPS to ¥175.66. ROE expanded to 17.3% from 15.6%, while the operating margin held steady at 13.6%.

Recurring software and cloud revenue powers the top line

MJS develops financial-accounting, ERP and tax software, together with cloud services, primarily for small and mid-sized enterprises and the accounting and tax-advisory firms that serve them. The business mixes upfront system-integration sales — hardware, software licences and installation for new and replacement systems — with a growing base of recurring service-and-support revenue from maintenance contracts, cloud subscriptions and operating services. The continued shift of customers toward cloud-based and subscription offerings underpinned the 6.0% sales gain and helped widen profitability, with the comprehensive income measure rising to ¥5,330 million (+33.1%).

Profit growth outstrips sales on a stronger bottom line

The standout feature of the year was the gap between modest sales growth and a 23.4% surge in net profit. Operating and ordinary profit both grew in the mid-to-high single digits, but net profit attributable to owners advanced far faster — a sign of a lower effective tax burden and/or improved non-operating and extraordinary items relative to the prior year, when net profit had risen just 3.4%. Equity-method investment income edged up to ¥57 million from ¥20 million. On a parent-only basis, net sales were ¥43,987 million (+6.7%) and operating profit ¥7,168 million (+5.7%), with parent net profit of ¥5,105 million (+8.4%).

Solid balance sheet and strong cash generation

Total assets grew to ¥48,758 million from ¥45,331 million, while net assets rose to ¥33,380 million from ¥29,637 million, pushing the equity ratio up to a robust 68.0% from 64.6%. Book value per share climbed to ¥1,106.61 from ¥978.29. Operating cash flow remained strong at ¥6,541 million (versus ¥6,357 million the prior year), comfortably funding investing outflows of ¥5,641 million and financing outflows of ¥2,634 million. Period-end cash and cash equivalents stood at ¥13,754 million.

Dividend raised to ¥65; scope of consolidation changes

Reflecting the stronger earnings, MJS raised its FY3/2026 annual dividend to ¥65.00 per share (all paid at year-end) from ¥55.00, for a consolidated payout ratio of 40.5%. For FY3/2027 the company guides a further increase to ¥70.00 per share. During the year the consolidation scope changed: MJS newly consolidated Synergix Technologies Pte Ltd. and removed MJS Finance & Technology Co., Ltd. from the consolidated group.

FY27 guidance: double-digit sales growth, lower net profit

For the fiscal year ending March 2027, management projects net sales of ¥53,800 million (+10.0%), operating profit of ¥7,230 million (+8.3%), ordinary profit of ¥7,380 million (+7.4%) and net profit attributable to owners of ¥4,810 million (-11.0%), with forecast EPS of ¥160.63. The projected decline in net profit — despite double-digit sales growth and higher operating profit — implies the FY3/2026 bottom line benefited from items that are not expected to recur, so the FY27 net-profit base normalises even as the underlying business continues to expand.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.