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 Last Year | YoY |
|---|---|---|---|
| Revenue | ¥706.2B | ¥627.1B | +12.6% |
| Operating Income | ¥113.3B | ¥113.2B | +0.1% |
| Ordinary Income | ¥111.8B | ¥112.3B | -0.4% |
| Net Income | ¥80.5B | ¥79.4B | +1.4% |
| ROE | 2.2% | 2.2% | - |
This quarter saw a substantial increase in revenue from the Real Estate Business drive overall sales growth, while cost growth absorbed the increase in earnings, leaving Operating Income and Ordinary Income largely flat despite higher revenue. Revenue secured double-digit growth at ¥706.2B (+12.6% YoY), while Operating Income was ¥113.3B (+0.1%) and Ordinary Income was ¥111.8B (-0.4%). Consolidated Net Income was ¥80.5B (+1.4%), of which Net Income attributable to owners of the parent was ¥78.5B (+2.6%); the net increase in extraordinary income (+¥4.7B) contributed to the final increase in earnings. The primary driver of revenue growth was the near doubling of revenue in the Real Estate Business (+84.4%). This was partly offset by lower revenue and earnings in Urban Transportation and lower revenue in Construction, resulting in a company-wide Operating Income margin of 16.0%, down from 18.1% in the prior year.
【Revenue】Revenue was ¥706.2B (+12.6% YoY). Real Estate posted a substantial increase in revenue to ¥175.0B (+84.4%), expanding its share of company-wide revenue from 15.1% in the prior year to 24.8% and becoming the primary driver of revenue growth. Leisure & Services (¥92.0B, +8.3%) and Retailing (¥77.0B, +4.9%) also contributed to higher revenue, while core Urban Transportation (¥283.7B, -2.5%) and Construction (¥77.3B, -6.4%) reported lower revenue.
【Profit and Loss】Operating Income was essentially flat at ¥113.3B (+0.1%). Operating Income in Real Estate increased to ¥39.7B (+23.8%), but earnings growth did not keep pace with revenue growth, and the segment profit margin declined from 33.8% in the prior year to 22.7%. Urban Transportation reported lower revenue and earnings, with Operating Income of ¥47.1B (-13.4%) and a margin of 16.6% (18.6% in the prior year), making it the primary cause of the decline in the company-wide margin. Ordinary Income was ¥111.8B (-0.4%); the increase in interest and dividend income (¥11.97B versus ¥7.92B in the prior year) was exceeded by the increase in interest expenses (¥13.54B versus ¥9.50B in the prior year), resulting in a slight deterioration in non-operating income and expenses. Extraordinary income and expenses were positive by a net ¥4.7B, mainly due to gains on the sale of non-current assets (¥3.0B), lifting Profit Before Tax to ¥116.5B (+3.6% YoY). In conclusion, the quarter secured top-line growth led by Real Estate, but earnings growth slowed due to the decline in the Urban Transportation margin, resulting in higher revenue and earnings, with earnings remaining nearly flat.
By segment, Urban Transportation (40.2% of revenue) reported lower revenue and earnings, with revenue of ¥283.7B (-2.5%) and Operating Income of ¥47.1B (-13.4%); its margin also declined to 16.6%. Beginning in Q1, the segment changed its depreciation method for property, plant and equipment (excluding buildings and structures) from the declining-balance method to the straight-line method. This change increased Operating Income by +¥5.27B. Excluding this effect, underlying earnings would have been approximately ¥41.9B, equivalent to a margin of approximately 14.8%, suggesting that the actual decline in earnings power may have been more significant. Real Estate (24.8% of revenue) led company-wide revenue growth, with revenue of ¥175.0B (+84.4%), but the increase in Operating Income to ¥39.7B (+23.8%) was considerably smaller than the increase in revenue, and the margin significantly diluted from 33.8% in the prior year to 22.7%. Leisure & Services reported higher revenue and earnings, with revenue of ¥92.0B (+8.3%) and Operating Income of ¥10.8B (+22.9%); its margin improved from 10.3% to 11.7%. Retailing reported higher revenue but lower earnings, with revenue of ¥77.0B (+4.9%) and Operating Income of ¥12.3B (-4.4%). Construction reported lower revenue and earnings, with revenue of ¥77.3B (-6.4%) and Operating Income of ¥4.6B (-17.8%); its margin declined to 6.0% from 6.8% in the prior year.
【Profitability】The Operating Income margin was 16.0%, down approximately 2.1pt from 18.1% in the same period of the prior year, while the Net Income margin, based on consolidated Net Income, was 11.4%, down from 12.7% in the prior year. Basic EPS, based on Net Income attributable to owners of the parent, was ¥72.54 (¥67.57 in the prior year, +7.4%), indicating an ongoing earnings increase even after deducting non-controlling interests.【Cash Flow Quality】Comprehensive Income was ¥136.2B (¥89.0B in the prior year, +53.0%). The difference from consolidated Net Income of ¥80.5B was primarily due to +¥61.1B in valuation differences on securities, indicating that market conditions boosted Comprehensive Income.【Investment Efficiency】ROE was 2.2% (quarterly basis, not annualized). The asset-intensive business structure, with total assets of ¥10620.0B against revenue of ¥706.2B, is a constraint on capital efficiency.【Financial Soundness】The Equity Ratio improved to 34.3% from 31.3% in the same period of the prior year. However, the Current Ratio was 74.4% (current assets of ¥1174.6B / current liabilities of ¥1578.2B), below 1.0x. With cash and deposits of ¥269.2B against short-term borrowings of ¥773.0B, the company has limited liquidity cushioning in terms of short-term funding. Accounts payable and notes payable declined to ¥144.1B (-28.3% YoY), indicating changes in the funding structure for working capital.
As the cash flow statement disclosure classifications are not included in the data, cash trends are assessed based on changes in the balance sheet. Cash and deposits increased +9.99% to ¥269.2B from ¥244.8B in the same period of the prior year, indicating a slight buildup in cash on hand. Meanwhile, accounts payable and notes payable declined 28.3% YoY to ¥144.1B; changes in payment terms for purchases and construction-related expenses or lower transaction volumes may have created cash outflow pressure in working capital. Inventories were ¥475.3B, slightly down from ¥483.2B in the prior year, with no significant inventory buildup observed. On the non-current asset side, investment securities increased to ¥1002.9B from ¥887.8B in the prior year. Together with the expansion of valuation differences on securities (+¥61.1B), this confirms market-driven appreciation on the asset side. Long-term borrowings were ¥2711.0B (¥2505.5B in the prior year), while bonds remained flat at ¥1300.0B, suggesting that asset acquisitions and investments funded by long-term capital continue.
Current-period earnings consist primarily of recurring business earnings, centered on Operating Income of ¥113.3B, adjusted for non-operating income of ¥13.57B, including interest and dividend income of ¥11.97B, and non-operating expenses of ¥15.06B, including interest expenses of ¥13.54B. Extraordinary income consisted of ¥7.33B, including a gain on the sale of non-current assets of ¥3.04B, while extraordinary losses consisted of ¥2.59B, including a loss on disposal of non-current assets of ¥0.81B. The net amount was +¥4.74B and limited in scale, indicating that its impact on Profit Before Tax of ¥116.5B was confined to temporary factors. Against Ordinary Income of ¥111.8B, Net Income attributable to owners of the parent was ¥78.5B; the difference is primarily explained by income taxes of ¥36.0B and Net Income attributable to non-controlling interests of ¥2.0B. In the Urban Transportation segment, the change in the depreciation method from the declining-balance method to the straight-line method increased current-period Operating Income by +¥5.27B. This is an accounting factor not accompanied by cash flow and should be noted accordingly. The difference between Comprehensive Income of ¥136.2B and Net Income of ¥80.5B was primarily due to +¥61.1B in valuation differences on securities, and includes valuation-related changes that differ in nature from business earnings.
Progress against the full-year plan was 24.6% for revenue (¥706.2B/¥2875.0B), 28.3% for Operating Income (¥113.3B/¥400.0B), 31.1% for Ordinary Income (¥111.8B/¥359.0B), and 33.0% for Net Income attributable to owners of the parent (¥78.5B/¥238.0B). Compared with simple quarterly apportionment of 25%, revenue is progressing at an almost standard pace, while each earnings measure is progressing faster than the standard pace. The leading progress on earnings reflects the concentration of Real Estate revenue and earnings in Q1, the +¥5.27B boost to earnings from the change in the depreciation method in Urban Transportation, and the increase in interest and dividend income. Based on this report, no revisions were made to the earnings forecast or dividend forecast for the current quarter.
The annual dividend forecast is ¥27.5, representing an increase from the previous year’s actual dividend of ¥25. The Payout Ratio against forecast EPS of ¥219.96 is approximately 12.5% (¥27.5/¥219.96), a low level, indicating that the dividend burden is not significant relative to earnings. No revision has been made to the dividend forecast as of the end of the current quarter. Although short-term liquidity is somewhat constrained, the low Payout Ratio enhances dividend resilience against earnings fluctuations.
Short-term liquidity risk: The Current Ratio is 74.4% (current assets of ¥1174.6B / current liabilities of ¥1578.2B), below 1.0x. Cash and deposits of ¥269.2B against short-term borrowings of ¥773.0B result in a cash-to-short-term liabilities ratio of approximately 0.35x. Accounts payable also declined 28.3% YoY, requiring ongoing monitoring of short-term cash management.
Declining profitability in the core segment: The Urban Transportation segment reported lower revenue and earnings, with revenue down 2.5% and Operating Income down 13.4%; its margin declined to 16.6% from 18.6% in the prior year. The segment benefited from a +¥5.27B increase in earnings due to the change in the depreciation method, and its underlying earnings power excluding this effect is at an even lower level.
Increase in interest burden: Interest expenses increased +42.5% to ¥13.54B from ¥9.50B in the same period of the prior year, pushing up total non-operating expenses to ¥15.06B. With long-term borrowings of ¥2711.0B and bonds of ¥1300.0B, the company has a substantial interest-bearing debt balance, and the impact of changes in the interest-rate environment on Ordinary Income remains an area requiring close attention.
Profitability and Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income margin | 16.0% | 7.1% (2.3%–8.5%) | +9.0pt |
| Net Income margin | 11.4% | 4.9% (0.7%–5.9%) | +6.5pt |
Both the Operating Income margin and Net Income margin substantially exceed the industry median, placing profitability in the upper tier of the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | 12.6% | 4.1% (3.3%–11.2%) | +8.5pt |
The revenue growth rate also exceeds the industry median, with expansion in the Real Estate Business contributing to relatively high growth within the industry.
※Source: Compiled by the Company
Quality of revenue growth: Revenue growth is heavily dependent on the Real Estate Business (+84.4%). The dilution of the segment margin from 33.8% in the prior year to 22.7% is an important point to verify when assessing the sustainability of revenue growth.
Impact of the change in accounting policy: The Urban Transportation segment changed its depreciation method from the declining-balance method to the straight-line method, increasing current-period Operating Income by +¥5.27B. This is an accounting factor not accompanied by cash flow and should be considered when comparing segment earnings across periods.
Contrast between liquidity and earnings progress: While progress toward the full-year plan for each earnings measure is running ahead of revenue progress of 24.6%—Operating Income at 28.3%, Ordinary Income at 31.1%, and Net Income at 33.0%—the Current Ratio is below 1.0x at 74.4%. This warrants continued monitoring of both earnings progress and short-term cash management.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit five-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥3,116 |
| base | ¥3,152 |
| bull | ¥3,192 |
| Calculation Assumption | Value |
|---|---|
| Book value per share (BPS) | ¥3,369 |
| Adjusted forecast EPS | ¥233.1 |
| Cost of equity r | 9.15% (10-year Japanese Government Bond 2.65% + Equity Risk Premium 6.00% + Size Premium 0.50%) |
| Residual income persistence coefficient ω / explicit forecast period | 0.62 / 5 years |
| Assumed Payout Ratio | 12.5% |
| Forecast EPS confidence adjustment | ×1.060 (based on the industry’s historical guidance achievement rate) |
| implied PBR / PER |
Sensitivity: ¥3,062–¥3,247 for ±1% in the cost of equity, and ¥3,145–¥3,158 for ±0.1 in ω.
Notes:
(Calculation model: Residual Income Model / Interest-rate reference month: 2026-06 / This value does not forecast or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting with professionals as necessary.
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| 0.94x / 13.5x |