Nihon Enterprise Co., Ltd. (TSE: 4829) reported consolidated results for the fiscal year ended May 31, 2026 under Japanese GAAP. Revenue edged up 0.6% to ¥4,466 million, but the earnings picture improved markedly down the income statement: operating profit rose 21.0% to ¥82 million from ¥67 million, ordinary profit advanced 19.4% to ¥106 million from ¥89 million, and net profit attributable to owners of the parent more than tripled, up 203.5% to ¥65 million from ¥21 million. Basic earnings per share climbed to ¥1.71 from ¥0.56. Nihon Enterprise is a Tokyo-based company operating mobile-content and IT-solutions businesses, spanning content services, business-support services and system development.
Profit rebounds off a low base on stable revenue
With revenue essentially flat, the standout of the year was the recovery in profitability. Net profit more than tripled off a low prior-year base, while operating and ordinary profit each grew by roughly a fifth — the improvement driven by an enhanced earnings mix and cost discipline rather than by top-line volume. The gap between the 21.0% rise in operating profit and the near-tripling of the bottom line reflects the leverage of a modest operating gain over a small prior-year net figure, together with reduced drag below the operating line.
Both segments broadly stable
Nihon Enterprise reports in two segments. The Creation segment — content services plus business-support services — posted revenue of ¥1,827 million (+1.5%), while the Solution segment — system-development services plus business support — recorded revenue of ¥2,639 million (-0.1%). Both segments were broadly stable year on year, so the group result was driven by the improvement in overall profitability rather than by any material shift in the top-line mix between the two businesses.
Debt-free balance sheet and stronger cash generation
The balance sheet remained conservatively financed, with total assets of ¥5,638 million, net assets of ¥4,893 million and an equity ratio of 83.7% — very strong, though marginally lower than the prior year's 84.7%. Book value per share stood at ¥122.52. Cash generation strengthened notably: operating cash flow rose to ¥289 million from ¥157 million a year earlier. During the year, a newly formed subsidiary, NE Investment Co., was added to the scope of consolidation.
Dividend held at ¥3.00 as profit recovers
Nihon Enterprise maintained its annual dividend at ¥3.00 per share for FY2026/5 and plans to hold it again at ¥3.00 for FY2027/5. With earnings still in the early stages of recovery, the payout ratio remains elevated at roughly 175%, underscoring the company's commitment to a stable dividend even as reported profit rebuilds toward the level of the distribution.
FY2027 guidance: growth across the board
For the year ending May 2027, Nihon Enterprise guides to revenue of ¥4,820 million (+7.9%), operating profit of ¥105 million (+27.9%), ordinary profit of ¥160 million (+49.9%) and net profit of ¥85 million (+29.1%), with EPS projected at ¥2.21. The guidance points to renewed growth across every line of the income statement, extending the current year's profit recovery.
| Metric | FY2026/5 | FY2025/5 | YoY |
|---|---|---|---|
| Net sales (¥m) | 4,466 | 4,442 | +0.6% |
| Operating profit (¥m) | 82 | 67 | +21.0% |
| Ordinary profit (¥m) | 106 | 89 | +19.4% |
| Net profit (¥m) | 65 | 21 | +203.5% |
| Basic EPS (¥) | 1.71 | 0.56 | +205.4% |
| Operating cash flow (¥m) | 289 | 157 | +84.1% |
| Equity ratio | 83.7% | 84.7% | — |
| Dividend per share (¥) | 3.00 | 3.00 | — |
| FY2027/5 net sales guidance (¥m) | 4,820 | — | +7.9% |
| FY2027/5 operating profit guidance (¥m) | 105 | — | +27.9% |
| FY2027/5 net profit guidance (¥m) | 85 | — | +29.1% |
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.