[In-Depth Analysis] Miratap (3187) FY2026 Q3 Financial Results: Significant Turnaround to Profitability Driven by Improved Margins, Sustainable Growth via New Product Launches and AI Integration

This report provides a comprehensive analysis of the financial results for Miratap Co., Ltd. (Securities Code: 3187) for the third quarter of the fiscal year ending September 2026 (FY2026/3Q), covering performance highlights, changes in profit structure, category-specific trends, key KPIs, growth strategies, and AI initiatives.

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1. Performance Highlights and Progress Against Full-Year Forecasts

Miratap’s cumulative results for the third quarter of FY2026 show a significant year-on-year improvement in both revenue and profit at all levels, with operating and ordinary profits progressing steadily in line with the full-year plan.

Slide Analysis: Performance Highlights (Slide 3)

This slide serves as a critical financial summary, covering the overall performance for the third quarter and progress against the full-year plan. Following a period of operating and ordinary losses in the same period last year, the company has achieved a robust turnaround to profitability , with operating profit of 267 million yen (75.7% progress against plan) and ordinary profit of 232 million yen (71.5% progress against plan) . Furthermore, quarterly net profit reached 233 million yen , effectively achieving the full-year target (227 million yen) ahead of schedule (102.8% progress). However, the full-year forecast remains unchanged as a conservative measure, accounting for potential fourth-quarter expenses and fluctuations in the business environment.

Key Financial Metrics (Cumulative):

• Net Sales : 11,888 million yen (+3.4% YoY, 69.8% progress against full-year plan)
• Gross Profit : 4,439 million yen (+2.0% YoY, 37.3% gross margin)
• Operating Profit : 267 million yen (Turnaround from a 139 million yen loss in the same period last year, 75.7% progress)
• Ordinary Profit : 232 million yen (Turnaround from a 139 million yen loss in the same period last year, 71.5% progress)
• Quarterly Net Profit : 233 million yen (Turnaround from a 172 million yen loss in the same period last year, 102.8% progress)
• EBITDA : 435 million yen (Significant increase from 8 million yen in the same period last year)

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2. Analysis of Operating Profit Variance (Year-on-Year)

The transition from a loss in the previous year to profitability this term is attributed to the elimination of one-time expenses incurred in prior years, alongside strategic investment scrutiny and cost management.

Slide Analysis: Factors Affecting Operating Profit (Slide 6)

This slide uses a waterfall chart to visually illustrate how operating profit reversed from a 139 million yen loss to a 267 million yen profit (a 406 million yen improvement). The primary driver of profit growth was the reduction in advertising expenses (+360 million yen) , which had been heavily invested in the previous year following the company's rebranding. Additionally, the elimination of warehouse relocation costs and double storage fees ( +56 million yen ) and the non-recurrence of one-time head office relocation expenses ( +40 million yen ) significantly boosted profits. This profitability was achieved even after absorbing upfront investments for future expansion, such as personnel expenses (-62 million yen) , rent (-31 million yen) , and depreciation (-21 million yen) related to system acquisitions, signaling a structural recovery in earning power.

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3. Quarterly Sales Trends and Performance by Product Category

Looking at quarterly sales, the company achieved a record-high for a third quarter (3Q) of 4,001 million yen (+6.4% YoY) . This was driven by an increase in order value and frequency, particularly among the loyal customer base.

Sales by Product Category (FY2026/3Q Cumulative):

• Washroom/Plumbing : 5,435 million yen (45.7% of sales, +6.0% YoY) - Steady expansion as a core segment.
• Kitchen : 2,163 million yen (18.2% of sales, +3.5% YoY) - Solid performance supported by new product launches.
• Bath : 482 million yen (4.1% of sales, +16.2% YoY) - Recorded a high growth rate.
• Storage : 472 million yen (4.0% of sales, +6.1% YoY)
• Fixtures/Exterior/Tiles : Experienced a slight year-on-year decline but complemented overall growth.

In May 2026, the company launched new products such as the "Inviera" built-in refrigerator—its first original home appliance designed for spatial harmony—and the "Giora" full-ceramic kitchen, both of which have received strong feedback since their initial release.

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4. Balance Sheet and Improvement in Financial Position

Financial health has improved due to the generation of cash from operating activities.

• Total Assets : 8,835 million yen (+45 million yen from the end of the previous fiscal year)
• Reduction in Current Liabilities : Repayment of short-term borrowings (888 million yen) reduced current liabilities to 4,216 million yen.
• Reduction in Interest-Bearing Debt : Despite securing 133 million yen in long-term loans, total debt was reduced by 755 million yen on a net basis, significantly strengthening the financial structure.
• Net Assets : Increased to 3,034 million yen (equity ratio of approximately 34.3%) due to the accumulation of retained earnings from net profit.

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5. Recovery of Brand Awareness and Key KPIs (SNS Followers)

Following the company's rebranding from "Sanwa Company" to "Miratap," brand awareness temporarily declined. However, proactive measures have led to a V-shaped recovery, reaching levels comparable to the former name.

• Awareness Trends : Reached 18.4% among those considering housing and 6.9% among the general public, maintaining parity with the former brand name.
• Official SNS Followers : Total followers expanded to 391,000. Notably, Instagram followers surpassed 200,000, and the newly launched TikTok account exceeded 19,000, steadily creating touchpoints with potential future customers.
• Change in KPI Disclosure : In response to the changing search environment driven by the rise of AI, the company has redefined its disclosure focus from "site traffic" to potential customer base indicators such as "major official SNS followers."

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6. Future Growth Strategy and Diversification of Sales Channels

Miratap aims to enhance corporate value over the medium to long term by focusing on both strengthening product competitiveness and diversifying sales strategies.

Slide Analysis: Growth Strategy (Slide 11)

This slide outlines the medium-to-long-term strategic roadmap from FY2025 to FY2026. Regarding "Strengthening Product Competitiveness," the company is expanding beyond traditional housing equipment into the home appliance category with products like the "Toar" original lighting and "Inviera" built-in refrigerators. It is also continuously launching flagship products with high design and value-added features, such as the "Giora" full-ceramic kitchen and "Basalti" large-format tiles. Regarding "Sales Strategy," in addition to traditional web advertising, TV commercials, and exhibitions, the company is promoting the diversification of sales channels and promotions, including the launch of select products on Amazon , the use of streaming TV ads (TVer), and public relations activities utilizing AI employees.

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7. Business Transformation and DX Strategy via AI Integration

Miratap is actively promoting AI utilization both internally and externally to achieve dramatic improvements in productivity.

• External Initiatives : In April 2026, an AI employee named "Mira Nina" joined the company to handle customer service in showrooms. In May, the company released a financial results presentation video featuring an AI avatar of the CEO , showcasing a cutting-edge approach to PR and customer service.
• Internal Initiatives : All employees have been provided with generative AI tools, and the company has introduced a proprietary AI skill visualization index called "mirAIs" (a 6-level scale from Lv0 to Lv5). The goal for this term is for all departments to move beyond "Lv0 (not yet started)" and build an AI-ready organizational structure.

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8. Organizational Structure and Transition to Non-Consolidated Accounting

• Employee Trends : The number of employees at the end of FY2026/3Q was 292 (+3 from the end of the previous fiscal year). By advancing AI adoption and the automation/unmanned operation of customer service, the company has created capacity to shift human resources to the more profitable BtoB (corporate) sector .
• Transition to Non-Consolidated Accounting : Following the sale of all shares of its consolidated subsidiary, Best Bright Co., Ltd., in September 2025, the company has transitioned to non-consolidated accounting . The elimination of losses previously incurred by the subsidiary has had a structurally positive impact on the company's profit levels this term.

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Summary and Investor Perspective

Miratap's FY2026 Q3 results mark a milestone quarter where profitability recovered dramatically as the upfront investments and one-time expenses of the previous year subsided, resulting in a steady turnaround to profit as planned.

With the recovery of brand awareness following the name change, the expansion of the SNS base, the launch of new products including home appliances, the development of new channels like Amazon, and company-wide operational efficiency through AI, various measures for the growth phase are steadily bearing fruit . Although the full-year forecast remains unchanged as a conservative measure, the tightened financial structure and strengthened product and sales foundations indicate that a solid base for sustainable future growth has been established.