Asia Air Survey Co Ltd

Asia Air Survey maintains a conservative capital structure with a debt-to-equity ratio of 0.36, well below the industry median of 0.65. The company holds JPY 6.33 billion in cash and equivalents, but its operating cash flow of -JPY 7.25 billion indicates significant working capital outflows. This negative cash flow is partially offset by low capital expenditures of -JPY 442.7 million, suggesting minimal reinvestment in physical assets.

Profitability metrics show a return on equity of 12.28% and return on assets of 5.99%, both exceeding the industry medians of 9.8% and 4.2%, respectively. The company's gross margin of 37.1% (calculated from gross profit of JPY 5.96 billion on revenue of JPY 16.06 billion) is robust, though its operating margin of 25.4% (JPY 4.09 billion on revenue) suggests moderate operating leverage.

The company's revenue is concentrated in a few key markets, with Japan accounting for 68% of total revenue and Southeast Asia representing 22%. No single customer accounts for more than 10% of revenue, but the top three clients collectively represent 34% of total sales.

Looking ahead, revenue is projected to grow by 12.3% in the current fiscal year and 8.1% in the following year, driven by increased demand for geospatial data in mining and infrastructure projects. This growth is supported by a 15.6% year-over-year increase in revenue in the most recent reporting period.

The company faces moderate liquidity risk due to its negative net cash position after subtracting total debt. However, dilution risk is low, with no near-term pressure from share issuance or convertible debt. The company has not made any recent equity offerings, and its diluted shares outstanding remain unchanged at 18.2 million.

Recent filings show no material changes in business operations or risk exposure. The company's latest earnings report confirmed strong net income of JPY 2.71 billion, in line with analyst estimates. No material litigation or regulatory actions were disclosed in the most recent 10-K equivalent filing.

Revenue grew 6.4% annually over four years, demonstrating consistent top-line expansion in the mining support sector.

Net income declined 5.2% year-over-year, marking the first annual profit drop in the provided five-year history.

Long-term debt surged to 5.9 billion JPY, a significant increase from 3.7 billion JPY in the prior fiscal year.

Debt-to-equity ratio of 0.36 is below the cohort median, but rising leverage increases financial risk exposure.

Cash conversion ratio of -2.67 places the company in the bottom quartile of its peer group.

Revenue ¥8.85B, +4,1% YoY; Operating income +148,2% YoY.

• ▍Revenue ¥8.85B, +4,1% YoY
• ▍Operating income +148,2% YoY
• ▍Net income +55,2% YoY
• ▍Net margin -1.6%

Revenue ¥10.83B, +8,1% YoY; Operating income +686,3% YoY.

• ▍Revenue ¥10.83B, +8,1% YoY
• ▍Operating income +686,3% YoY
• ▍Net income +723,7% YoY
• ▍Net margin 4.7%

Revenue ¥6.19B, +9,7% YoY; Operating income +5,4% YoY.

• ▍Revenue ¥6.19B, +9,7% YoY
• ▍Operating income +5,4% YoY
• ▍Net income −0,2% YoY
• ▍Net margin -18.4%

Revenue ¥16.07B, +0,1% YoY; Operating income −0,7% YoY.

• ▍Revenue ¥16.07B, +0,1% YoY
• ▍Operating income −0,7% YoY
• ▍Net income +1,5% YoY
• ▍Net margin 17.1%

Revenue ¥8.50B; Operating income -¥230.5M.

• ▍Revenue ¥8.50B
• ▍Operating income -¥230.5M
• ▍Net margin -3.8%

Revenue ¥10.02B; Operating income -¥89.2M.

• ▍Revenue ¥10.02B
• ▍Operating income -¥89.2M
• ▍Net margin 0.6%

Revenue ¥5.64B; Operating income -¥1.77B.

• ▍Revenue ¥5.64B
• ▍Operating income -¥1.77B
• ▍Net margin -20.2%

Revenue ¥16.06B; Operating income ¥4.09B.

• ▍Revenue ¥16.06B
• ▍Operating income ¥4.09B
• ▍Net margin 16.9%

Revenue ¥41.59B, +3,3% YoY; Operating income −4,0% YoY.

• ▍Revenue ¥41.59B, +3,3% YoY
• ▍Operating income −4,0% YoY
• ▍Net income −5,2% YoY
• ▍Free cash flow −49,8% YoY
• ▍Net margin 4.3%

Revenue ¥40.27B, +8,0% YoY; Operating income +10,2% YoY.

• ▍Revenue ¥40.27B, +8,0% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +2,9% YoY
• ▍Free cash flow +24,5% YoY
• ▍Net margin 4.7%

Revenue ¥37.30B, +10,8% YoY; Operating income +10,2% YoY.

• ▍Revenue ¥37.30B, +10,8% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow +11,7% YoY
• ▍Net margin 5.0%

Revenue ¥33.67B, +3,6% YoY; Operating income −0,5% YoY.

• ▍Revenue ¥33.67B, +3,6% YoY
• ▍Operating income −0,5% YoY
• ▍Net income −0,1% YoY
• ▍Free cash flow −32,1% YoY
• ▍Net margin 5.1%