| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥9088.8B | ¥8940.4B | +1.7% |
| Operating Income | ¥761.0B | ¥602.9B | +26.2% |
| Ordinary Income | ¥725.0B | ¥468.1B | +54.9% |
| Net Income | ¥591.1B | ¥341.5B | +73.1% |
| ROE | 2.7% | 1.6% | - |
For Q1 of the fiscal year ending January 2027, revenue was ¥9088.8B (YoY +¥148.4B +1.7%), operating income was ¥761.0B (YoY +¥158.1B +26.2%), ordinary income was ¥725.0B (YoY +¥256.9B +54.9%), and quarterly net income attributable to owners of the parent was ¥591.1B (YoY +¥249.6B +73.1%). Although revenue increased only marginally, gross margin improved to 22.0% (from 19.9% a year earlier, +2.1pt) driven by a higher mix of high-margin projects in the Development Business and stable recurring revenue from Rental Housing Management. This outpaced the SG&A ratio of 13.6% (from 13.4% a year earlier, +0.2pt), lifting the operating margin to 8.4% (from 6.7% a year earlier, +1.7pt). At the ordinary income level, foreign exchange gains of ¥36.3B and equity-method investment income of ¥28.0B contributed, improving from the stagnation in FX and equity-method results a year earlier. Interest expenses of ¥99.7B remained a burden, but profit margin at the ordinary level expanded to 8.0% (from 5.2% a year earlier, +2.8pt). Special gains included ¥106.7B from the sale of investment securities, resulting in profit before tax of ¥829.6B and an effective tax rate of 28.8%, yielding net income of ¥591.1B (net margin 6.5%, from 3.8% a year earlier, +2.7pt). EPS improved substantially to ¥90.21 (from ¥51.49 a year earlier, +75.2%), producing a results set of both higher revenue and higher profit.
【Revenue】 Revenue of ¥9088.8B (+1.7%) reflected strong growth in the Development Business with revenue of ¥1683.2B (+36.5%), Rental Housing Management ¥1851.3B (+3.1%), Rental & Commercial Buildings ¥1222.0B (+2.1%), and Reform ¥415.4B (+5.4%), while Overseas Business ¥2206.4B (-14.4%), Detached Housing ¥1041.9B (-4.3%), and Construction & Civil Engineering ¥734.4B (-4.9%) declined, resulting in a modest overall increase. The Development Business growth reflects an increase in land for sale (for subdivision) which rose ¥1055.5B versus the fiscal year-end, indicating front-loaded project formation and investment. The Overseas Business decline was influenced by yen appreciation and schedule delays on some projects; Detached Housing and Construction & Civil Engineering were affected by weaker domestic housing demand and timing differences in order receipt.
【Profitability】 Operating income of ¥761.0B (+26.2%) was achieved as the cost of sales ratio improved to 78.0% (from 79.9% a year earlier, -1.9pt), lifting gross profit to ¥1998.2B (YoY +¥202.6B +11.3%), which substantially outpaced SG&A of ¥1237.1B (YoY +¥37.4B +3.1%). By segment, Operating Income contributions were led by Development Business ¥346.5B (+158.0%, margin 20.6%), Rental Housing Management ¥222.2B (+13.0%, margin 12.0%), Rental & Commercial Buildings ¥134.1B (+8.8%, margin 11.0%), Construction & Civil Engineering ¥64.3B (+16.3%, margin 8.8%), and Reform ¥45.1B (+5.7%, margin 10.9%). Detached Housing posted a decline to ¥44.7B (-33.2%, margin 4.3%), and Overseas Business swung to an operating loss of ¥42.4B (from an operating profit of ¥48.4B in the prior year), pressuring consolidated profits. Ordinary income of ¥725.0B (+54.9%) reflected non-operating income of ¥83.0B (including FX gains ¥36.3B and equity-method income ¥28.0B) partially offsetting non-operating expenses of ¥119.1B (including interest expense ¥99.7B and FX losses ¥46.4B). Special gains of ¥106.7B (gain on sale of investment securities) produced profit before tax of ¥829.6B; after income taxes of ¥238.5B (effective tax rate 28.8%), net income reached ¥591.1B (+73.1%). While results show both revenue and profit growth, profit growth is structurally driven by higher margins in the Development segment and the contribution of special gains.
The Development Business became the core segment, generating revenue ¥1683.2B (+36.5%), operating income ¥346.5B (+158.0%), and a margin of 20.6%, representing 45.5% of consolidated operating profit. Higher profitability on subdivision projects and the effect of accelerated inventory investment boosted profits. Rental Housing Management contributed stable stock revenue with revenue ¥1851.3B (+3.1%), operating income ¥222.2B (+13.0%), margin 12.0%. Rental & Commercial Buildings showed steady performance with revenue ¥1222.0B (+2.1%), operating income ¥134.1B (+8.8%), margin 11.0%. Construction & Civil Engineering recorded revenue ¥734.4B (-4.9%) but improved operating income to ¥64.3B (+16.3%), margin 8.8%, through cost controls. Reform produced revenue ¥415.4B (+5.4%), operating income ¥45.1B (+5.7%), margin 10.9%. Detached Housing saw weaker revenue ¥1041.9B (-4.3%) and operating income ¥44.7B (-33.2%), margin 4.3%, reflecting a challenging market. Overseas Business had revenue ¥2206.4B (-14.4%) and an operating loss of ¥42.4B (turning from an operating profit of ¥48.4B in the prior year), margin -1.9%, where FX effects and project delays hinder growth. The wide dispersion in segment margins means Development, Management, and Rental drive profits while Overseas and Detached remain key improvement areas.
【Profitability】Operating margin was 8.4% (from 6.7% a year earlier, +1.7pt), driven by an expanded spread of gross margin 22.0% (from 19.9% a year earlier, +2.1pt) over SG&A ratio 13.6% (from 13.4% a year earlier, +0.2pt). Net margin was 6.5% (from 3.8% a year earlier, +2.7pt), including the contribution of special gains ¥106.7B. ROE annualized was 2.7% (based on quarterly net income); improvement in net margin was the main driver. Asset turnover was 0.73x (annualized from quarterly sales), and financial leverage (Total Assets / Equity) was 2.24x, roughly unchanged. 【Cash Quality】Interest coverage was Operating Income ¥761.0B / Interest Expense ¥99.7B = 7.63x, indicating solid ability to service interest. Operating Cash Flow data is not disclosed, but the balance sheet shows cash and deposits decreased to ¥2961.6B (vs. fiscal year-end -¥1390.2B -31.9%), while land for sale (for subdivision) rose to ¥1613.3B (vs. fiscal year-end +¥1055.5B +189.4%), suggesting working capital was consumed by front-loaded development investment. 【Investment Efficiency】Total assets ¥49583.1B (vs. fiscal year-end -¥483.3B -1.0%), net assets ¥22102.8B (vs. fiscal year-end +¥220.4B +1.0%), and equity ratio improved to 44.6% (from 43.7% at fiscal year-end, +0.9pt), indicating capital accumulation. 【Financial Soundness】Interest-bearing debt totaled ¥15151.0B (short-term borrowings ¥378.4B, bonds maturing within one year ¥20.0B, long-term borrowings due within one year ¥2091.0B, long-term borrowings ¥5156.1B, bonds ¥7505.4B), with interest-bearing debt / equity ratio of 0.82x and Debt/Capital ratio of 28.8%, at healthy levels. Current ratio was 296.2% (current assets ¥38846.9B / current liabilities ¥13111.7B), and the quick ratio was also 296.2%, indicating very strong short-term liquidity. However, current liabilities represent 26.4% of total assets, and cash / short-term liabilities = ¥2961.6B / ¥13111.7B = 0.23x, meaning cash alone does not fully cover short-term debt and refinancing or operating cash inflows are necessary. Retirement benefit liabilities stood at ¥275.8B (vs. ¥275.2B at fiscal year-end, roughly flat), and deferred tax liabilities ¥307.5B (vs. ¥246.3B at fiscal year-end, +¥61.2B) indicate certain potential off-balance-sheet risks.
Although the cash flow statement is not disclosed, balance sheet movements suggest cash and deposits declined significantly to ¥2961.6B (vs. fiscal year-end -¥1390.2B -31.9%), while land for sale (for subdivision) jumped to ¥1613.3B (vs. fiscal year-end +¥1055.5B +189.4%), implying development project investment substantially consumed working capital. Construction in progress (work in progress) also increased to ¥208.3B (vs. fiscal year-end +¥74.2B +55.4%), indicating active construction activity. Advances received (uncompleted contract deposits) rose to ¥2491.2B (vs. fiscal year-end +¥123.8B +5.2%), showing some progress in collectability but still lagging compared with the scale of inventory investment, delaying cash conversion. Tangible fixed assets decreased to ¥4520.9B (vs. fiscal year-end -¥580.4B -11.4%), suggesting depreciation and asset disposals outweighed capex. Interest-bearing debt structure shows total ¥15151.0B with a shift of short-term borrowings to long-term: short-term borrowings ¥378.4B (vs. fiscal year-end -¥359.3B) and long-term borrowings due within one year ¥2091.0B (vs. fiscal year-end +¥481.0B), implying ongoing refinancing from short-term to long-term. Internal funding capacity for dividends and capex appears sufficient given quarterly net income ¥591.1B and equity ¥22102.8B, but sustained funding depends on inventory turnover, handovers, and recovery of operating cash flow.
Non-operating income of ¥83.0B included FX gains ¥36.3B and equity-method investment income ¥28.0B, while non-operating expenses of ¥119.1B included interest expense ¥99.7B and FX losses ¥46.4B. FX recorded both gains and losses, producing high volatility depending on revaluation timing and transaction currencies. Equity-method income ¥28.0B (from ¥8.3B a year earlier, +¥19.7B) reflects improved performance of associates but is limited in persistence and manageability since it is outside consolidated operations. Special gains ¥106.7B (gain on sale of investment securities) are one-off and accounted for 12.9% of profit before tax ¥829.6B, boosting net income ¥591.1B. Excluding this special gain, profit before tax would be approximately ¥723B and net income roughly ¥510B (estimate). Comparing stages, operating income ¥761.0B vs. ordinary income ¥725.0B (-4.7%) vs. net income ¥591.1B (-22.3%) shows sequential reductions due to non-operating items, special items, and tax burden; thus core earnings should be evaluated at the operating level. From an accrual perspective, increases in land for sale +¥1055.5B, cash decreases -¥1390.2B, and increases in advances received +¥123.8B create divergence between cash flow and profit, as front-loaded inventory investment has temporarily worsened cash conversion.
Full-year guidance is revenue ¥4,353.0B (YoY +3.7%), operating income ¥350.0B (YoY +2.5%), ordinary income ¥314.0B (YoY -4.2%), and net income attributable to owners of the parent ¥218.0B (EPS ¥336.30). Q1 progress rates against the full-year forecast were: revenue 20.9%, operating income 21.7%, ordinary income 23.1%, and net income 27.1%. Residential and construction businesses tend to be back-end weighted due to delivery and completion seasonality, so while revenue and operating income are slightly below the standard 25% pace, net income is elevated by the special gain ¥106.7B. The full-year plan forecasts ordinary income down YoY -4.2%, apparently factoring in higher non-operating expenses (interest burden and FX volatility). There were no revisions to full-year guidance or dividend forecast at Q1. Inventory turnover in Development and profit improvement in Overseas Business are key to recovery in the second half; achieving the full-year plan depends on accelerating handovers in H2 and reducing international losses.
Dividend forecast is annual ¥72 (interim ¥36, year-end ¥36), implying a payout ratio of about 21.4% against forecast EPS ¥336.30, a conservative level. The prior fiscal year dividend was maintained at ¥72, indicating a stable dividend policy. Annualizing Q1 EPS ¥90.21 gives an equivalent ¥360.84, outpacing forecast EPS ¥336.30, but considering the one-off contribution of special gains, the forecast EPS is regarded as reasonable. Treasury stock is virtually unchanged at 3,184.0 thousand shares (vs. 3,183.9 thousand at fiscal year-end), with no confirmed buybacks or cancellations this term. Total dividend payout is approximately ¥46.7B (outstanding shares 65.142M - treasury stock 0.003M ≒ 64.842M × ¥72), which gives a payout ratio of about 79% relative to Q1 net income ¥591.1B; however, this is on a quarterly basis and full-year payout ratio of 21.4% is the appropriate metric. Given cash and deposits ¥2961.6B and retained earnings ¥13865.6B, dividend sustainability is high; short-term funding needs from inventory investment exist, but recovery in operating cash flow and inventory turnover should maintain or expand dividend capacity.
Continued losses in Overseas Business: Overseas revenue ¥2206.4B (-14.4%) and operating loss ¥42.4B (turning from operating profit ¥48.4B a year earlier) produce a margin of -1.9% and press on consolidated results. FX moves (yen appreciation) and project delays are primary causes; ongoing FX risk and uncertainty in overseas project schedules and profitability remain. Since the Overseas segment accounts for 24.3% of consolidated revenue, widening losses could substantially dilute consolidated margins.
Capital tied up by slowed inventory turnover: Land for sale increased sharply +¥1055.5B (vs. fiscal year-end +189.4%), while cash decreased -¥1390.2B (-31.9%). Front-loaded development investment has built inventories; if handover timing slips or sales underperform, working capital recovery delays and impairment risk could materialize. Growth in advances received (+5.2%) trails inventory increases, suggesting continued temporary deterioration in cash conversion.
Rising interest rates and reliance on short-term liabilities increasing financing costs: Of interest-bearing debt ¥15151.0B, short-term borrowings ¥378.4B, bonds maturing within one year ¥20.0B, and long-term borrowings due within one year ¥2091.0B total ¥2489.4B in short-term liabilities, representing 16.4% of total debt. Interest expense increased to ¥99.7B (from ¥91.3B, +9.2%), and in a rising rate environment refinancing costs and cash flow from financing could worsen. Cash/short-term liabilities ratio 0.23x means cash alone cannot fully cover short-term debt; delays in refinancing or lack of committed lines could materialize liquidity risk.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 8.4% | 4.5% (2.7%–6.6%) | +3.9pt |
| 純利益率 | 6.5% | 3.8% (-1.1%–4.4%) | +2.7pt |
Profitability substantially exceeds the industry median and is above the upper quartile.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 1.7% | 4.8% (3.4%–10.1%) | -3.1pt |
Revenue growth lags the industry median and is close to the lower quartile, indicating relatively slow top-line expansion.
※Source: Company compilation
High profitability in the Development Business is the engine of profit growth, generating a 20.6% operating margin (2.5x the consolidated average of 8.4%) and 45.5% of consolidated operating income. The accumulation of land for sale (+¥1055.5B) appears to be front-loaded inventory investment ahead of H2 handovers and revenue recognition; accelerating turnover and handovers in Development projects is key to achieving full-year results. Conversely, delays in inventory turnover or weak sales could lock up working capital and create impairment risk, making close monitoring of project-level progress and sales trends critical.
The swing to an operating loss in Overseas Business (operating loss ¥42.4B, a deterioration of ¥90.6B from operating profit ¥48.4B a year earlier) is the largest bottleneck to consolidated results. Given the segment’s 24.3% share of consolidated revenue, improvement in overseas profitability is essential for sustained consolidated margin improvement. FX impacts and project delays are primary causes; strengthening FX hedging and improving schedule and margin management on overseas projects are urgent priorities. Until the Overseas segment returns to profitability, consolidated operating margin will remain dependent on high-margin Development and Management segments.
Special gains of ¥106.7B (gain on sale of investment securities) lifted net income, so core earnings should be evaluated at the operating level (¥761.0B, +26.2%). Progress versus full-year guidance is revenue 20.9% and operating income 21.7%, below a standard 25% pace, but is within reason given the seasonality (back-end weighting) in residential and construction businesses; if handovers and completions proceed from Q2 onward, a return to plan is plausible. Dividend payout ratio forecast 21.4% is conservative, and combined with retained earnings ¥13865.6B, shareholder return sustainability is high. Nevertheless, short-term liability ratio 16.4% and cash/short-term liabilities 0.23x indicate reliance on refinancing, so interest rate trends and transparency around funding plans will be important going forward.
This report is an AI-generated earnings analysis document produced from XBRL financial statement data. It does not constitute investment advice for specific securities. Industry benchmarks are reference information compiled by the firm from public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.