These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | - | ¥1.6B | -100.0% |
| Operating Income | ¥-2.1B | ¥-0.1B | -2928.6% |
| Ordinary Income | ¥-0.9B | ¥0.3B | -363.6% |
| Net Income | ¥-1.0B | ¥0.2B | -504.2% |
| ROE | -0.4% | 0.1% | - |
In Q1, the operating loss widened as selling, general and administrative expenses preceded limited revenue recognition. Although financial income provided partial support, net income fell from a profit in the previous year to a loss. Revenue was ¥0.0B (¥1.6B in the previous year, YoY -100.0%), operating income was ¥-2.1B (¥-0.1B in the previous year), ordinary income was ¥-0.9B (¥0.3B in the previous year, YoY -363.6%), and net income attributable to owners of the parent was ¥-1.0B (¥0.2B in the previous year, YoY -504.2%). The Company operates as a single segment comprising the real estate development and rental management business, and the sluggish start to the current fiscal year reflects the concentration of project revenue recognition in the second half.
【Revenue】Revenue was ¥0.0B (¥1.6B in the previous year), representing an almost complete loss of revenue, with YoY at -100.0%. The primary reason was that no revenue from real estate development projects was recognized during the quarter, leaving progress against the full-year plan (¥35.0B) at zero. As a single-segment business, the structure in which the presence or absence of project closings significantly affects quarterly revenue has become apparent.
【Profit and Loss】While revenue disappeared, selling, general and administrative expenses increased to ¥2.1B (¥1.2B in the previous year, +approximately 77%), causing operating income to deteriorate to ¥-2.1B. At the ordinary income level, non-operating income of ¥1.2B, including interest income of ¥0.9B and foreign exchange gains of ¥0.3B, partially mitigated the loss; however, ordinary income turned from a profit to a loss of ¥-0.9B. Net income also came to ¥-1.0B, indicating an earnings structure dependent on non-operating financial income and foreign exchange gains. In conclusion, the Company recorded lower revenue and lower earnings, with operating income, ordinary income, and net income deteriorating due to the loss of revenue.
The Company operates as a single segment comprising the real estate development and rental management business, and no segment-specific disclosures are provided.
【Profitability】The operating margin and ordinary income margin cannot be calculated because revenue was zero. The upfront burden of selling, general and administrative expenses of ¥2.1B (¥1.2B in the previous year) was the primary cause of the operating loss of ¥2.1B.【Cash Quality】Of ordinary income of ¥-0.9B, non-operating income of ¥1.2B, including interest income of ¥0.9B and foreign exchange gains of ¥0.3B, contributed to mitigating the loss, indicating a high degree of dependence on earnings components not generated by the core business.【Investment Efficiency】ROE was -0.4%, remaining low against the backdrop of the net loss and substantial equity attributable to owners of the parent (net assets of ¥263.3B).【Financial Soundness】The equity ratio was an exceptionally high 98.5%. Liabilities remained at approximately ¥4.0B against total assets of ¥267.3B, indicating a conservative financial foundation.
As no cash flow statement disclosure could be confirmed, cash trends are analyzed based on movements in the balance sheet. Cash and deposits remained almost flat at ¥112.6B (around ¥112.6B in the previous year), indicating that the Company maintained its cash holdings despite incurring an operating loss. Meanwhile, property, plant and equipment increased to ¥14.2B (+approximately 34.8% year on year), suggesting that funds are being invested in development and rental assets. Current liabilities were extremely small at ¥1.9B compared with current assets of ¥116.4B, providing ample room for short-term liquidity management. Future cash generation will depend on the speed at which the accumulated assets are monetized.
The current period’s earnings structure relied on non-operating income amid limited recognition of core business revenue, resulting in lower earnings quality. Of ordinary income of ¥-0.9B, interest income of ¥0.9B and foreign exchange gains of ¥0.3B contributed to mitigating the loss. These items derive from the holding of financial assets and market conditions and differ in nature from recurring earnings generated by the core business. Comprehensive income was ¥2.3B, substantially diverging from the net loss of ¥-1.0B, due to the ¥3.3B increase from foreign currency translation adjustments; this does not indicate an improvement in actual cash-generation capacity. The increase in selling, general and administrative expenses (+approximately 77%) is believed to reflect upfront business promotion costs. Unless accompanied by a recovery in revenue recognition, profit and loss volatility at the operating level may persist for the time being.
The full-year forecasts are revenue of ¥35.0B, operating income of ¥1.5B, ordinary income of ¥4.9B, and net income of ¥3.3B. Progress rates in Q1 were -141% for operating income (actual ¥-2.1B versus full-year ¥1.5B), -18% for ordinary income (actual ¥-0.9B/full-year ¥4.9B), and -26% for net income (actual ¥-1.0B/full-year ¥3.3B), all substantially below the approximately 25% progress generally expected for Q1. No revisions were made to either the earnings forecast or the dividend forecast, and management has maintained its full-year outlook based on a project plan weighted toward the second half.
The full-year dividend forecast is ¥0 per share, and the payout ratio for the current period is 0%. In light of the current loss-making position, the Company appears to be prioritizing retained earnings. Supported by high financial resilience, including cash and deposits of ¥112.6B and an equity ratio of 98.5%, there is room for dividends to resume in the future; however, this will require a return to operating profitability and achievement of the full-year plan.
Risk of concentration in the timing of revenue recognition: As a single-segment business, the timing of project revenue recognition significantly affects quarterly earnings, and revenue in Q1 declined from ¥1.6B in the previous year to zero.
Risk of delays in asset monetization: Property, plant and equipment increased to ¥14.2B (+approximately 34.8% year on year). If the accumulated development and rental assets are not monetized as planned, recovery of invested capital may be delayed.
Risk of earnings volatility due to dependence on non-operating income: Support for ordinary income depends on interest income of ¥0.9B and foreign exchange gains of ¥0.3B. If these sources of income contract due to changes in interest rates or foreign exchange conditions, they may become factors contributing to deterioration in ordinary income.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | -100.0% | 4.5% (-12.6%–22.7%) | -104.5pt |
The Company’s revenue growth rate is substantially below the industry median and is at the lowest level among its peers.
※Source: Company analysis
Revenue recognition was almost zero in Q1, while selling, general and administrative expenses increased +approximately 77% year on year, resulting in a significant deterioration in operating income. This front-loaded cost structure is substantially increasing short-term performance volatility.
Ordinary income and net income were partially mitigated by non-operating items such as interest income and foreign exchange gains. The recovery of earnings-generation capacity from the core business will therefore be the focus going forward.
Property, plant and equipment increased +approximately 34.8%, indicating continued accumulation of development and rental assets. However, progress against the full-year plan (including operating income of -141%) is significantly delayed, making the extent to which projects are closed in the second half a key determinant of performance.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation to take any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥478 |
| base | ¥479 |
| bull | ¥480 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥618 |
| Adjusted Forecast EPS | ¥9.1 |
| Cost of Equity r | 9.77% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 1.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 0.0% |
| Forecast EPS Confidence Adjustment | ×1.062 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥466–¥493 at cost of equity ±1%; ¥475–¥482 at ω±0.1.
Notes:
(Calculation model: Residual income model / Interest rate reference month: 2026-07 / This value does not predict or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL financial results summary data. It does not recommend investment in any specific security. Industry benchmarks are reference information compiled by the Company based on publicly disclosed financial results data. Investment decisions should be made at your own responsibility, consulting a professional as necessary.
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| 0.78x / 52.9x |