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 | ¥751.6B | ¥728.3B | +3.2% |
| Operating Income | ¥131.3B | ¥129.6B | +1.3% |
| Ordinary Income | ¥132.2B | ¥126.4B | +4.6% |
| Net Income | ¥96.7B | ¥97.2B | -0.5% |
| ROE | 2.8% | 2.8% | - |
The two core businesses, Real Estate and Transportation, drove revenue growth; however, higher interest expenses and declines in certain segments limited the increase in final profit. Revenue was ¥751.6B (up +3.2% year on year), Operating Income was ¥131.3B (up +1.3%), and Ordinary Income was ¥132.2B (up +4.6%). Net Income attributable to owners of the parent was ¥93.6B (¥93.5B in the same period last year, up +0.0%), remaining almost flat. The Operating Income margin declined slightly to 17.5% from 17.8% in the previous year. Although the decline in the Leisure and Services Business pressured the company-wide mix, an increase in dividend income supported growth at the Ordinary Income level.
【Revenue】Revenue of ¥751.6B (up +3.2% year on year) was primarily driven by higher revenue from Real Estate (¥249.0B, +9.7%) and Transportation (¥246.4B, +5.7%). Retail was nearly flat at ¥135.7B (+0.7%), while Leisure and Services declined to ¥108.7B (-5.5%), and Other Businesses contracted significantly to ¥11.4B (-33.5%).
【Profit and Loss】Operating Income of ¥131.3B (+1.3%) grew slowly relative to revenue growth, primarily because SG&A expenses increased to ¥130.2B (up +8.4% year on year), outpacing revenue growth. By segment, Real Estate (OP ¥55.5B, +11.9%), Transportation (OP ¥50.5B, +13.8%), and Retail (OP ¥7.1B, +33.3%) contributed to the increase in profit, while Leisure and Services (OP ¥17.7B, -31.5%) and Other Businesses (OP ¥1.7B, -63.4%) offset part of the gains through lower profit. Ordinary Income was ¥132.2B (+4.6%); dividend income increased to ¥9.97B (¥5.65B in the previous year), offsetting the increase in interest expenses (¥10.98B, compared with ¥7.36B in the previous year). Extraordinary income and expenses were a net gain of +¥6.75B (including a ¥7.0B gain on the sale of fixed assets), indicating that temporary factors were limited. Net Income attributable to owners of the parent was ¥93.6B (+0.0%), nearly unchanged from the previous year. Despite higher revenue and profit, the earnings growth rate remained limited.
The Real Estate Business was the largest profit-contributing segment, with Operating Income of ¥55.5B (up +11.9% year on year; profit margin 22.3%). The Transportation Business recorded Operating Income of ¥50.5B (+13.8%; profit margin 20.5%), maintaining the second-largest scale after Real Estate. Retail showed notable improvement, with Operating Income of ¥7.1B (+33.3%; profit margin 5.2%), although its scale remains small relative to the company as a whole. Leisure and Services declined to Operating Income of ¥17.7B (-31.5%; profit margin 16.3%), while Other Businesses also contracted to ¥1.7B (-63.4%). Although the high-margin Real Estate and Transportation businesses form the pillars of company-wide profit, deteriorating profitability in Leisure and Services is creating a headwind for the segment mix.
【Profitability】The Operating Income margin was 17.5%, down approximately -0.3pt from 17.8% in the previous year, due to SG&A expense growth (+8.4%) outpacing revenue growth (+3.2%). The Net Income margin remained at a high level of 12.9%. 【Cash Quality】Accounts receivable declined substantially to ¥228.0B during the period (a reduction relative to ¥228.0B in the previous year), while advances received increased to ¥24.8B, indicating generally good consistency between profit and cash generation. 【Investment Efficiency】ROE was 2.8% and the Equity Ratio was 37.2%; the low total asset turnover ratio remains a constraint on capital efficiency. Basic EPS was ¥92.72 (¥92.68 in the previous year), remaining nearly flat. 【Financial Soundness】Current assets were ¥2566.1B versus current liabilities of ¥1951.3B, indicating no structural surplus or shortfall in short-term funding. However, short-term borrowings reached ¥1068.2B, and liquidity buffers were tight relative to cash and deposits of ¥231.5B.
Although the company did not disclose a cash flow statement, the flow of funds can be inferred from balance sheet trends. During the period, the company appears to have used financing to bolster liquidity. Cash and deposits increased to ¥231.5B, while short-term borrowings also accumulated substantially, suggesting that available funds were secured through flexible financing. Meanwhile, accounts receivable and notes receivable were reduced to ¥228.0B, and advances received increased to ¥24.8B, indicating signs of improvement in the collection of operating revenue. Investment securities increased to ¥914.6B, also suggesting that part of the funds was allocated to investment assets. Overall, cash generation from operating activities appears broadly consistent with the level of profit, although the increased reliance on short-term financing warrants attention.
Profit for the period was primarily generated by recurring business activities. Extraordinary income and expenses were a net gain of +¥6.75B (extraordinary income of ¥9.2B and extraordinary losses of ¥2.4B), which was limited and did not materially distort the evaluation of core business performance. Of ¥13.9B in non-operating income, dividend income accounted for ¥9.97B (¥5.65B in the previous year), contributing to the growth in Ordinary Income as a relatively stable source of revenue. Meanwhile, interest expenses increased to ¥10.98B (¥7.36B in the previous year), creating pressure on financial income and expenses, although the increase in dividend income offset this effect. Comprehensive Income was ¥113.2B, of which ¥109.5B was attributable to owners of the parent, exceeding Net Income of ¥93.6B. The primary factor was an increase of ¥18.7B in valuation differences on securities. The divergence between Net Income and Comprehensive Income was mainly attributable to valuation changes in marketable assets and should be distinguished from the cash-generating capacity of the core business.
Progress against the full-year plan was 23.3% for Revenue (¥751.6B/¥3218.0B), 31.0% for Operating Income (¥131.3B/¥424.0B), and 34.7% for Ordinary Income (¥132.2B/¥381.0B). Compared with the standard Q1 progress rate of 25%, Operating Income and Ordinary Income are progressing ahead of schedule, with the strength of the Real Estate and Transportation businesses supporting first-half progress. While the full-year plan assumes declines of -13.7% in Operating Income and -18.8% in Ordinary Income compared with the previous year, the current Q1 remained on a growth trajectory, suggesting that assumptions for the second half or the reversal of temporary factors may be incorporated into the full-year outlook. No revisions have been made to the earnings forecast or dividend forecast.
The full-year dividend forecast announced by the company is ¥86.00 per share, implying a Payout Ratio of approximately 29.9% against the initial EPS forecast of ¥287.41. Based on an average number of shares outstanding of approximately 1.009B shares, the annual total dividend is expected to be approximately ¥86B, providing sufficient coverage against the full-year Net Income forecast of ¥290B. No disclosure regarding share repurchases was identified, and the shareholder return policy currently appears to be centered on dividends.
Deterioration in the segment mix: Operating Income in the Leisure and Services Business declined significantly to ¥17.7B (-31.5% year on year), partially offsetting profit growth in Real Estate and Transportation. Demand trends in this business could affect the company-wide margin going forward.
Reliance on short-term financing: Short-term borrowings reached ¥1068.2B, and the liquidity buffer is relatively tight compared with cash and deposits of ¥231.5B. In an environment of rising interest rates, higher financing costs could pressure profit.
Low capital efficiency: ROE was 2.8%, with the low total asset turnover ratio acting as a constraint. Given the capital-intensive business structure, the scope for short-term improvement is limited.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 17.5% | 7.1% (4.3%–8.6%) | +10.4pt |
| Net Income Margin | 12.9% | 5.9% (2.8%–8.5%) | +7.0pt |
The company’s profitability significantly exceeds the industry median, placing it at a high-margin level within the transportation industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | 3.2% | 3.3% (0.2%–7.6%) | -0.1pt |
The revenue growth rate is nearly in line with the industry median, positioning the company at an industry-average growth pace.
※Source: Company analysis
The high-margin Real Estate and Transportation businesses drove company-wide earnings, with the Operating Income margin of 17.5% remaining significantly above the industry median. The stability of recurring revenue from both businesses supports the resilience of earnings.
The decline in profit in the Leisure and Services Business (-31.5%) deteriorated the segment mix and restrained the company-wide pace of profit growth. Earnings trends in this business will be a structural area of focus that could influence future margin trends.
Reliance on short-term borrowings has increased, and the liquidity buffer is tight relative to cash and deposits. Monitoring the impact of changes in the interest-rate environment on financial costs is important.
This is a reference range mechanically calculated solely from publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade period). It is not a forecast of the market stock price or a recommendation to take any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear | ¥3,377 |
| base | ¥3,425 |
| bull | ¥3,478 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥3,476 |
| Adjusted Forecast EPS | ¥304.5 |
| Cost of Equity r | 9.27% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Factor ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 29.9% |
| Forecast EPS Confidence Adjustment | ×1.060 (based on the industry’s historical guidance achievement rate) |
| implied PBR / PER |
Sensitivity: ¥3,329–¥3,526 at ±1% for the cost of equity, and ¥3,423–¥3,426 at ±0.1 for ω.
Notes:
(Calculation model: Residual Income Model / Interest-rate reference month: 2026-07 / This value does not forecast or guarantee the future stock price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release 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, and you should consult a professional as necessary.
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| 0.99x / 11.2x |