Strong Revenue GrowthSustained ~74% TTM revenue growth indicates expanding market penetration and rising demand for the company’s products. Over a 2–6 month horizon this supports scale advantages, increased bargaining power with distributors, and a larger base for converting value-added offerings into durable sales.
Improved Gross MarginMaterial gross margin improvement to ~36.8% suggests better product mix or production efficiency rather than transient price moves. Higher gross margin is structurally important: it provides buffer against operating cost volatility and creates room to invest in value-added SKUs that support longer-term profitability.
Positive Free Cash FlowConsistent positive operating cash flow and multi-year free cash flow (FY2025 ~¥3.3B, FY2024 ~¥2.8B, TTM ~¥2.24B) show the business can generate cash despite margin pressure. That durability supports capex, working capital needs, and deleveraging or targeted reinvestment over months.