Performance Trends of Sanki Service <6044>

3. Breakdown of Service Type Revenue

Construction projects, such as large-scale projects related to government facilities such as schools and city halls, increased. The revenue increased by 13.9% year-on-year to 5440 million yen compared to the previous period, with a revenue composition ratio of 32.5%, a decrease of 1.5 points. The company's efforts in recent years to acquire government-related construction qualifications and secure the necessary number of dedicated technical staff have paid off, leading to an increase in orders for multiple large-scale government construction projects. Regular projects saw an increase in revenue of 10.0% to 3247 million yen, with a revenue composition ratio of 19.4%, a decrease of 1.6 points, due to the steady growth of total maintenance services. Repair projects experienced significant growth, with revenue increasing by 27.3% to 8051 million yen, and a revenue composition ratio of 48.1%, an increase of 3.1 points, attributed to the expansion of sales to convenience stores and securing maintenance contracts for refrigeration, air conditioning, and other equipment update needs.

4. Transition of Revenue Composition by Customer Attribute

Retail trade, accounting for 52.5% of the revenue composition, increased by 21.8% year-on-year to 8785 million yen, contributing to an increase in orders for convenience stores as mentioned earlier. "Facility Management / Real Estate" saw a revenue increase of 22.7% to 2690 million yen, with a revenue composition ratio of 16.1% (an increase of 0.5 points). "Medical / Care / Welfare" achieved a revenue increase of 26.0% to 1315 million yen, with a revenue composition ratio of 7.9% (an increase of 0.5 points), primarily driven by these industries. "Other" focused on leasing, including large-scale air conditioning renovation projects for schools and government agencies, as well as an increase in building maintenance equipment update projects. Revenue increased by 25.3% to 1708 million yen, with a revenue composition ratio of 10.2% (an increase of 0.5 points).

5. Overview of Financial Condition

The total assets for the fiscal year ending May 2024 increased by 259 million yen compared to the previous year to 8612 million yen. Of this, current assets increased by 81 million yen to 7033 million yen. The main factors were an increase of 549 million yen in cash and deposits, offset by a decrease of 112 million yen in notes receivable, accounts receivable, and contract assets, and a decrease of 295 million yen in construction costs incurred. Fixed assets increased by 177 million yen to 1578 million yen due to increases in machinery, equipment and vehicles by 34 million yen, land by 120 million yen, and a decrease in intangible fixed assets such as software by 39 million yen, coupled with an increase in investment securities by 71 million yen. Total liabilities decreased by 121 million yen to 4398 million yen. Of this, current liabilities decreased by 55 million yen to 3520 million yen, driven by an increase in trade payables (commercial paper and construction payables) by 142 million yen and a decrease of 210 million yen in corporate income taxes payable. Fixed liabilities decreased by 65 million yen to 877 million yen due to a decrease in long-term borrowings by 137 million yen. Net assets increased by 380 million yen to 4214 million yen, driven by an increase in current net income of 467 million yen, dividend payments of 147 million yen, and a decrease of 9 million yen in treasury stock due to stock exchanges.

As a result, the equity ratio increased by 3.0 points to 48.9% compared to the previous period. However, the ROE (Return on Equity) decreased by 1.6 points to 11.6% compared to the previous period.

(Writer: FISCO analyst Tomoichi Murase)