| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥213.0B | ¥160.9B | +32.4% |
| 営業利益 | ¥34.9B | ¥23.1B | +51.5% |
| 経常利益 | ¥34.5B | ¥20.9B | +65.3% |
| 純利益 | ¥24.2B | ¥14.2B | +70.3% |
| ROE | 7.7% | 4.8% | - |
For the consolidated results for Q1 of the fiscal year ending February 2026, Revenue was ¥213.0B (YoY +¥52.1B +32.4%), Operating Income was ¥34.9B (YoY +¥11.9B +51.5%), Ordinary Income was ¥34.5B (YoY +¥13.7B +65.3%), and Net Income attributable to owners of the parent for the quarter was ¥24.2B (YoY +¥10.0B +70.3%). Driven primarily by expanded sales and improved gross margin in the Renovation Condominium Business, profit growth exceeded top-line growth; the operating margin improved to 16.4% (up +2.1pt from 14.3% a year ago) and the net margin to 11.4% (up +2.5pt from 8.8%), indicating a material improvement in profitability. Progress against the full-year guidance (Revenue ¥847.1B, Operating Income ¥93.0B, Ordinary Income ¥74.9B, Net Income ¥50.9B) shows Revenue at 25.1% while Operating Income is 37.6% and Net Income 47.5%, indicating profits are running ahead of schedule.
[Revenue] Strong sales in the Renovation Condominium Business led to Revenue of ¥213.0B (+32.4%). By segment, Renovation Condominium Business was ¥209.2B (+33.3%), Advisory Business was ¥6.9B (+53.9%), both expanding healthily, while the Investment Business contracted to ¥0.1B (-93.6%). Revenue from the Renovation Condominium Business accounted for 98.2% of total Revenue, with increased closing volumes in that business the primary driver of higher sales. The Advisory Business also grew by ¥2.4B YoY, a modest but high-growth contribution. [Profitability] Cost of sales was ¥164.7B resulting in gross profit of ¥48.3B (gross margin 22.7%, improved +2.8pt from 19.9%), with margin expansion driven by optimizing procurement conditions and improving project mix. SG&A was ¥13.3B (+48.5%), outpacing Revenue growth (+32.4%), but the SG&A-to-Revenue ratio was 6.3% (up +0.7pt from 5.6%), a modest rise absorbed by gross margin improvement. Operating Income of ¥34.9B (+51.5%) increased materially due to the combined effects of Revenue growth and gross margin improvement. Non-operating items included derivative valuation gains of ¥3.5B and higher interest income (¥0.06B → ¥0.16B), boosting non-operating income to ¥3.7B. Interest expense rose to ¥3.5B (up ¥0.9B from ¥2.6B) with increased borrowings, but the interest coverage ratio remained at a healthy 10.0x, indicating interest costs are manageable. Ordinary Income was ¥34.5B (+65.3%), reflecting operating gains plus improved non-operating items. After corporate taxes of ¥10.3B (effective tax rate 29.9%), Net Income landed at ¥24.2B (+70.3%), resulting in a year-over-year increase in both revenue and profit.
The Renovation Condominium Business reported Revenue of ¥209.2B (YoY +33.3%), Segment Profit of ¥31.8B (YoY +55.8%), and a margin of 15.2% (improved +2.2pt from 13.0%), generating the majority of corporate profit as the core business. Increased closing volumes, higher unit prices, and improved gross margins contributed to margin expansion. The Advisory Business recorded Revenue of ¥6.9B (+53.9%), Segment Profit of ¥4.9B (+74.0%), and margin of 70.7% (improved +8.1pt from 62.6%), expanding its high-profit contribution. The Investment Business contracted to Revenue of ¥0.1B (-93.6%) and reported a Segment Loss of ¥0.1B (turning from a ¥1.4B profit a year ago), becoming small-scale and loss-making, but its limited size means minimal impact on the group. Revenue composition: Renovation Condominium Business 98.2%, Advisory 3.2%, Investment 0.0%, indicating very high dependence on the Renovation Condominium Business and sensitivity of corporate results to that market.
[Profitability] Operating margin improved to 16.4% (up +2.1pt from 14.3% a year ago) and Net margin to 11.4% (up +2.5pt from 8.8%). ROE was 7.7%; DuPont decomposition yields Net margin 11.4% × Total Asset Turnover 0.170 × Financial Leverage 3.98x, indicating margin improvement as the primary driver. Total Asset Turnover of 0.170 reflects the real-estate nature of carrying large inventories (Inventory for sale ¥1,142B), and short-term improvement is unlikely. Interest coverage remained healthy at 10.0x (Operating Income ¥34.9B ÷ Interest Expense ¥3.5B). [Cash Quality] OCF data is undisclosed, but balance sheet trends suggest cash and deposits increased to ¥41.5B (from ¥34.0B, +¥7.5B), implying cash generation from operations. Inventory for sale rose to ¥1,142B (from ¥1,050B, +¥92B +8.7%), indicating continued investment in procurement and development. [Investment Efficiency] The low total asset turnover of 0.170 is characteristic of real estate and improving inventory turnover is key to capital efficiency. [Financial Soundness] Equity Ratio was 25.1% (down -0.6pt from 25.7% a year ago) and D/E ratio 2.98x (Interest-bearing debt ¥941.1B ÷ Net Assets ¥315.3B), indicating a high-leverage structure. Current ratio was 871% (Current assets ¥1,204B ÷ Current liabilities ¥138B), showing very high short-term liquidity; however, most current assets are inventories for sale, so realizable liquidity depends on sales progress. Long-term borrowings were ¥802.9B (up ¥67.4B from ¥735.5B), short-term borrowings ¥17.5B (up ¥16.2B from ¥1.3B), and interest-bearing debt is on an increasing trend; attention is needed for higher funding costs in a rising-rate environment.
Although the cash flow statement is not disclosed, balance sheet movements suggest cash and deposits rose to ¥41.5B (from ¥34.0B, +¥7.5B), implying cash generation from operating activities. At the same time, inventories for sale increased substantially to ¥1,142B (from ¥1,050B, +¥92B), indicating ongoing procurement and development investment. Interest-bearing debt rose to ¥941.1B (from ¥808.0B, +¥133.1B), with borrowings used to fund inventory investment. Inventory turnover is the key to cash generation, and the improved gross margin of 22.7% suggests higher cash-in per sale. Interest expense has risen to ¥3.5B, and if inventories stagnate, cash outflows could increase and interest burden could become heavier. Capital expenditures were limited (Tangible fixed assets ¥0.12B, Intangible fixed assets ¥0.18B), and the main capital requirements are for working capital (inventory) and debt repayment/interest.
Primary earnings are point-in-time recognition from property sales and rental income. The gross margin improvement to 22.7% is judged structural, driven by project mix improvements and optimized procurement. Non-operating income of ¥3.7B included derivative valuation gains of ¥3.5B, which boosted Ordinary Income but are a market/interest-rate-sensitive, non-recurring element with limited repeatability. Interest income ¥0.16B rose slightly but is likely sustainable. Non-operating expenses of ¥4.1B were mainly interest expense ¥3.5B (up +34.6% YoY), reflecting structural cost increases from higher borrowings. The gap between Ordinary Income ¥34.5B and Net Income ¥24.2B (-29.9%) is due to corporate taxes of ¥10.3B (effective tax rate 29.9%) and is not abnormal. Comprehensive income of ¥25.7B exceeded Net Income by ¥1.5B, attributable to improvement in deferred hedge gains (¥0.9B → ¥1.5B), reflecting improved valuation of interest-rate hedges. The quality of operating income is high; excluding temporary non-operating factors, Operating Income of ¥34.9B represents underlying earning power.
Against the full-year forecast (Revenue ¥847.1B, Operating Income ¥93.0B, Ordinary Income ¥74.9B, Net Income ¥50.9B, EPS ¥149.58円), Q1 progress rates were: Revenue 25.1% (¥213.0B ÷ ¥847.1B), Operating Income 37.6% (¥34.9B ÷ ¥93.0B), Ordinary Income 46.1% (¥34.5B ÷ ¥74.9B), Net Income 47.5% (¥24.2B ÷ ¥50.9B). Compared with a typical quarterly progress rate of 25%, Operating Income is +12.6pt and Net Income +22.5pt ahead, indicating material front-loading. This acceleration is attributed to better-than-expected gross margins, high-margin contribution from the Advisory Business, and a one-off boost from derivative valuation gains of ¥3.5B in non-operating income. Quarter-to-quarter progress can vary with Renovation Condominium closing timing, but at present there appears to be upside to the full-year plan. However, derivative valuation gains may normalize over the full year, and the contribution from non-operating items may decline going forward. There are no revisions to the earnings forecast or dividend forecast for this quarter.
Full-year dividend forecast is maintained at ¥22.50 per share (no interim dividend, year-end payment only). The payout ratio versus forecast EPS ¥149.58円 is approximately 15.0%, a conservative level. The prior fiscal year dividend was ¥15.00 per share, so the full-year plan represents an increase of ¥7.50 (+50.0%). Net income as dividend source is progressing well: ¥24.2B in Q1 against the full-year forecast of ¥50.9B (progress 47.5%). Given high leverage (interest-bearing debt ¥941.1B), prioritizing inventory turnover and leverage reduction over excessive dividends is rational, and the current payout ratio of 15% has high sustainability. There is no share buyback disclosure; shareholder returns are via dividends only.
[Industry Positioning] (reference information — company analysis) With typical operating margins in real estate around 10%, the company’s operating margin of 16.4% is high within the industry. Focus on renovation and an integrated procurement-to-sales structure created added value supporting high profitability. ROE 7.7% is slightly below the real estate industry average (around 8–10%), attributable to the low total asset turnover of 0.170 inherent to an inventory-heavy business model. Equity Ratio 25.1% is average within the real estate sector and typical for a high-leverage, growth-investment-oriented business. Revenue growth of +32.4% classifies as high growth within the industry, supported by market share expansion and a larger project pipeline.
Key points are as follows. First, notable improvements in gross margin to 22.7% (YoY +2.8pt) and operating margin to 16.4% (YoY +2.1pt) confirm structural profitability improvements from optimized procurement and improved project mix. Second, progress against full-year forecasts shows Operating Income at 37.6% and Net Income at 47.5%, significantly ahead of schedule, suggesting upside to the full-year plan. However, derivative valuation gains of ¥3.5B in non-operating income are one-off and may normalize in subsequent quarters. Third, interest-bearing debt of ¥941.1B (D/E 2.98x) and higher interest expense of ¥3.5B (YoY +34.6%) warrant caution regarding increased funding costs and margin compression in a rising-rate environment. Fourth, inventory turnover of inventories for sale ¥1,142B is critical for sustaining performance, so monitoring future closing progress and margin levels is essential.
This report was auto-generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed financial data. Investment decisions are your responsibility; consult a professional advisor as needed.