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Presentation materials for financial results1430First-corporation Inc.Construction and Materials

First-Quarter Financial Results Briefing Materials for the Fiscal Year Ending May 2027

In the first quarter of the fiscal year ending May 2027, revenue and net income were below the same period a year earlier, while operating profit increased as a result of cost control and margin improvement. Orders received reached 58.9% of the full-year plan, and the company also entered into a capital and business alliance with 中央日本土地建物 and expanded its shareholder benefit program.

Worth reading
82Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
20611
¥ million (orders received in the first quarter)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending May 202716 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,188 million-3.1%
Operating profit¥470 million+9.2%
Ordinary income¥413 million-3.3%
Net income¥269 million-4.8%
Selling, general and administrative expenses¥483 million
Gross Profit Margin
Rate13.3%
Year-on-year change (points)+2.4 percentage points year on year
Operating profit margin
Rate6.5%
Year-on-year change (points)+0.7 percentage points
Results for the three months of the current quarterRevenue of ¥7,188 million, operating profit of ¥470 million, ordinary profit of ¥413 million, and net income attributable to owners of the parent of ¥269 million. Figures for the first quarter alone.
Full-year earnings forecast
Net Sales
¥44,000 million
Operating profit
¥3,500 million
Ordinary income
¥3,000 million
Profit attributable to owners of the parent
¥2,070 million
Orders received
¥35,000 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales16.3%
Operating profit13.4%
Ordinary income13.8%
Profit attributable to owners of the parent13.0%
Orders received58.9%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-quarter results were broadly in line with the plan, while orders received were exceptionally strong. Results for the real estate business were also broadly on schedule against the plan for the current fiscal year.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Cost of salesDecreased by ¥379 million, from ¥6,614 million to ¥6,235 million
Gross profitIncreased by ¥147 million, from ¥806 million to ¥953 million
Selling, general and administrative expensesIncreased by ¥107 million, from ¥375 million to ¥483 million
Completed constructionIncreased by ¥284 million
Real estate salesDecreased by ¥475 million
Joint venture incomeDecreased by ¥98 million
Other revenueIncreased by ¥56 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Revenue and profit are weighted toward the second half, particularly in the real estate business. The plan calls for a gross margin on completed construction contracts of 12.2% for the current fiscal year. The order target is ¥35.0 billion. The construction materials price index was 152.3 in September 2026. Approximately 90% of funds invested in the development land supply business is recovered within six months, on a value basis.
New initiatives
  • Capital and business alliance with 中央日本土地建物株式会社
  • Expansion of the shareholder benefit program, including lowering the minimum holding to 100 shares and introducing a new category for continuous holdings of less than 1 year
  • Obtaining DX certification and developing infrastructure for operational efficiency and information use
  • Investment to strengthen the management platform, including human capital and DX
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥20,611 million
    Year on year against the same period last year+731.4%
  • Order backlog¥42,814 million
  • Gross margin on completed construction12.0%
    Year on year against the same period last year+0.2 percentage points
  • Balance of properties held for sale¥23,273 million
    Year on year against the same period last year+17.8%
  • Equity ratio34.5%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
2 orders received, totaling 489 units. Average unit count not disclosed. The combined sales volume and unit price metric is Not disclosed.
Segment results
Construction
Net Sales
¥6,010 million+5.0%
Segment profit
¥692 million+5.3%
Real Estate Business
Total revenue
¥1,072 million-34.8%
Real estate sales
¥1,049 million-31.2%
Joint business revenue
¥22 million-81.7%
Segment profit
¥91 million+19.7%
Medium-term management plan targets
First VISION 2031The company plans revenue of ¥50.0 billion, operating profit of ¥4.1 billion, and an operating margin of 8.2% for the fiscal year ending May 2028. In Phase 2, it is targeting revenue of ¥100.0 billion and an operating margin of at least 8%.
Financial targets
ROE18.0% for the fiscal year ending May 2026
Cost of shareholders’ equityApproximately 6–7%
Equity ratio34.5% as of the end of August 2026
Market Size / Share
The number of condominium starts and units supplied in Tokyo and three surrounding prefectures, and sales prices for newly built condominiums in the Tokyo metropolitan area, are provided. Market share is Not disclosed.
Orders received and order backlog
Orders received
¥20,611 million
Full-year order intake plan
¥35,000 million
Order backlog
¥42,814 million
Number of stores and locations
One location, the Kyushu Branch. The number of openings and closures during the period is Not disclosed.
Number of employees
199 employees on a consolidated basis and 179 on a non-consolidated basis (as of the end of May 2026). The company aims to have at least 300 employees in the fiscal year ending May 2031 and to hire at least 30 new graduates annually from the graduating class of 2027 onward.
Annual Dividend
Forecast for the fiscal year ending May 2027¥51 per share, including a year-end dividend of ¥51. No interim dividend.
Payout ratio
The policy is to maintain a consolidated payout ratio of at least 30%. The forecast for the fiscal year ending May 2027 is 30.0%.
Acquisition of treasury shares
The company states a policy of acquiring treasury shares flexibly, but the amount, number of shares, and period of the acquisition framework are Not disclosed.
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending May 2027
Net Sales¥7,188 million (YoY -3.1%)
Operating profit¥470 million (YoY +9.2%)
Ordinary income¥413 million (YoY -3.3%)
Net income¥269 million (YoY -4.8%)
Gross Profit MarginRate 13.3% / Year-on-year change (points) +2.4 percentage points year on year
Operating profit marginRate 6.5% / Year-on-year change (points) +0.7 percentage points
Selling, general and administrative expenses¥483 million
Results for the three months of the current quarterRevenue of ¥7,188 million, operating profit of ¥470 million, ordinary profit of ¥413 million, and net income attributable to owners of the parent of ¥269 million. Figures for the first quarter alone.
Full-year earnings forecastNet Sales ¥44,000 million / Operating profit ¥3,500 million / Ordinary income ¥3,000 million / Profit attributable to owners of the parent ¥2,070 million / Orders received ¥35,000 million
Progress against full-year forecastNet Sales 16.3% / Operating profit 13.4% / Ordinary income 13.8% / Profit attributable to owners of the parent 13.0% / Orders received 58.9%
Self-assessment against the planFirst-quarter results were broadly in line with the plan, while orders received were exceptionally strong. Results for the real estate business were also broadly on schedule against the plan for the current fiscal year.
Segment resultsConstruction Net Sales ¥6,010 million (YoY +5.0%) / Segment profit ¥692 million (YoY +5.3%) / Real Estate Business Total revenue ¥1,072 million (YoY -34.8%) / Real estate sales ¥1,049 million (YoY -31.2%) / Joint business revenue ¥22 million (YoY -81.7%) / Segment profit ¥91 million (YoY +19.7%)
Breakdown of Factors Affecting the ChangeCost of sales Decreased by ¥379 million, from ¥6,614 million to ¥6,235 million / Gross profit Increased by ¥147 million, from ¥806 million to ¥953 million / Selling, general and administrative expenses Increased by ¥107 million, from ¥375 million to ¥483 million / Completed construction Increased by ¥284 million / Real estate sales Decreased by ¥475 million / Joint venture income Decreased by ¥98 million / Other revenue Increased by ¥56 million
Key KPIsIndicator name Orders received / Value ¥20,611 million / Year on year against the same period last year +731.4%, Indicator name Order backlog / Value ¥42,814 million / Year on year against the same period last year Not disclosed, Indicator name Gross margin on completed construction / Value 12.0% / Year on year against the same period last year +0.2 percentage points, Indicator name Balance of properties held for sale / Value ¥23,273 million / Year on year against the same period last year +17.8%, Indicator name Equity ratio / Value 34.5% / Year on year against the same period last year Not disclosed
Unit price and quantity metrics2 orders received, totaling 489 units. Average unit count not disclosed. The combined sales volume and unit price metric is Not disclosed.
Number of stores and locationsOne location, the Kyushu Branch. The number of openings and closures during the period is Not disclosed.
Number of employees199 employees on a consolidated basis and 179 on a non-consolidated basis (as of the end of May 2026). The company aims to have at least 300 employees in the fiscal year ending May 2031 and to hire at least 30 new graduates annually from the graduating class of 2027 onward.
Assumptions Underlying the Business OutlookRevenue and profit are weighted toward the second half, particularly in the real estate business. The plan calls for a gross margin on completed construction contracts of 12.2% for the current fiscal year. The order target is ¥35.0 billion. The construction materials price index was 152.3 in September 2026. Approximately 90% of funds invested in the development land supply business is recovered within six months, on a value basis.
Medium-term management plan targetsFirst VISION 2031 The company plans revenue of ¥50.0 billion, operating profit of ¥4.1 billion, and an operating margin of 8.2% for the fiscal year ending May 2028. In Phase 2, it is targeting revenue of ¥100.0 billion and an operating margin of at least 8%.
Financial targetsROE 18.0% for the fiscal year ending May 2026 / Cost of shareholders’ equity Approximately 6–7% / Equity ratio 34.5% as of the end of August 2026
Annual DividendForecast for the fiscal year ending May 2027 ¥51 per share, including a year-end dividend of ¥51. No interim dividend.
Payout ratioThe policy is to maintain a consolidated payout ratio of at least 30%. The forecast for the fiscal year ending May 2027 is 30.0%.
Acquisition of treasury sharesThe company states a policy of acquiring treasury shares flexibly, but the amount, number of shares, and period of the acquisition framework are Not disclosed.
Orders received and order backlogOrders received ¥20,611 million / Full-year order intake plan ¥35,000 million / Order backlog ¥42,814 million
Market Size / ShareThe number of condominium starts and units supplied in Tokyo and three surrounding prefectures, and sales prices for newly built condominiums in the Tokyo metropolitan area, are provided. Market share is Not disclosed.
New initiativesCapital and business alliance with 中央日本土地建物株式会社, Expansion of the shareholder benefit program, including lowering the minimum holding to 100 shares and introducing a new category for continuous holdings of less than 1 year, Obtaining DX certification and developing infrastructure for operational efficiency and information use, Investment to strengthen the management platform, including human capital and DX
Items this document does not state (3)
Risk amount incorporated into the outlookCapital expendituresKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company explained that the decline in revenue was due to the timing of real estate projects shifting between quarters. It attributed the increase in operating profit to thorough cost control, selective order acceptance focused on profitability, passing higher materials and labor costs on to customers, and margin improvement through greater construction efficiency and the promotion of DX.

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First-Quarter Financial Results Briefing Materials for the Fiscal Year Ending May 2027 | First-corporation Inc. (1430) timely disclosure | Komori