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Earnings presentation1870YAHAGI CONSTRUCTION CO.,LTD.Construction and Materials

Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation

The full-year forecasts for operating income, ordinary income and net income for the fiscal year ending March 2027 were revised upward. The annual dividend forecast was also increased from ¥100 to ¥110 per share, while the revenue forecast was left unchanged.

Worth reading
66In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
500
¥ million (full-year forecast increases for operating income and ordinary income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥31,596 million-23.2%
Operating profit¥1,540 million-57.8%
Ordinary income¥1,638 million-55.4%
Net income¥2,953 million+15.3%
Gross Profit Margin14.0%
Operating profit margin4.9%
Selling, general and administrative expenses¥2,871 million
Results for the three months of the current quarter
Net Sales
¥31,596 million
Operating profit
¥1,540 million
Ordinary income
¥1,638 million
Profit attributable to owners of parent for the quarter
¥2,953 million
Full-year earnings forecast
Net Sales
¥150,000 million
Completed construction
¥139,000 million
Revenue from the real estate business and other businesses
¥11,000 million
Gross profit
¥21,300 million
Operating profit
¥9,500 million
Ordinary income
¥9,380 million
Profit attributable to owners of the parent
¥9,300 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。
First-quarter progress against the interim forecast
Net Sales48.0%
Completed construction48.5%
Revenue from the real estate business and other businesses37.5%
Gross profit64.9%
Gross profit on completed construction62.0%
Gross profit from the real estate business and other businesses101.0%
Selling, general and administrative expenses50.4%
Operating profit140.1%
Ordinary income159.0%
Profit attributable to owners of parent for the quarter128.4%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Gross profit exceeded the initial forecast, and operating income and all lower-line items reached the previously announced interim forecasts in the first quarter. Based on this performance, the interim forecasts were revised upward.
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Impact of the situation in the Middle East: No significant disruption to material procurement or construction delays have occurred, and the impact on results is expected to be limited
  2. Building business margin: The margin is expected to be 9.1% for the fiscal year ending March 2027, with the improvement trend expected to continue over the medium term
  3. Order backlog and revenue: New large-scale projects are in the early stages of construction, with their contribution to revenue expected to gain momentum from the second half onward
  4. Real estate business: Combining property ownership, operation and sales to mitigate fluctuations in results caused by the timing of property sales
  5. Shareholder returns: The company is committed in principle to a DOE of 5% or more and progressive dividends, while also considering share repurchases flexibly
  6. Labor shortages and productivity: Promoting the recruitment and development of engineers, as well as the use of AI and DX
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Factors reducing profit
  • The reaction to multiple large-scale building projects reaching their peak construction phase in the same period of the previous year
  • Transfer of the condominium development business
  • Fewer sales of development properties
Factors behind the increase
  • Progress on the substantial construction order backlog
Operating profit
Factors reducing profit
  • Impact of lower revenue
  • Higher expenses
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Construction ProgressConstruction projects are concentrated in the early stages during the first half, with construction progress gaining momentum from the second half onward
Real Estate SaleThe sale of a large-scale industrial site is scheduled for the second half
New initiatives
  • Capital and business alliance with 株式会社Malme and a joint construction DX development project
  • Development of a project information platform
  • Use of generative AI in quantity surveying
  • Development of a core business data platform for group companies
  • A stock-based real estate business model in which land and buildings are held to generate rental income before being sold
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥17,933 million-38.5%
  • Carried-forward construction work¥161,411 million+2.5%
  • Balance of properties held for sale¥18,405 million
  • D/E ratio0.2 times
  • Equity ratio60.2 %
  • Building business margin12 %
  • Civil engineering business margin14.7 %
  • Real estate business margin48.1 %
Segment results
Building Construction
Net Sales
¥21,255 million-25.6%
Gross profit
¥2,542 million-26.4%
Civil Engineering Business
Net Sales
¥9,290 million+30.3%
Gross profit
¥1,364 million+26.9%
Real Estate Business
Net Sales
¥1,050 million-80.7%
Gross profit
¥505 million-73.0%
Medium-term management plan targets
Business Portfolio RestructuringThe transition period will run through fiscal 2030, with the reconfiguration targeted for completion around fiscal 2035
Financial targets
Debt-to-equity ratio
0.2 times
TypeTrack record
Equity ratio
60.2 %
TypeTrack record
DOE
5 % or higher
TypeTargets
Orders received and order backlog
Orders received
¥17,933 million-38.5%
Carried-forward construction work
¥161,411 million+2.5%
Annual Dividend
¥110 per share
Interim Dividend55
Year-end dividend55
Payout ratio
51.1 %
DOE
6.1 %
Acquisition of treasury shares
To be considered flexibly in light of the share price level and market conditions
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥31,596 million (YoY -23.2%)
Operating profit¥1,540 million (YoY -57.8%)
Ordinary income¥1,638 million (YoY -55.4%)
Net income¥2,953 million (YoY +15.3%)
Gross Profit Margin14.0%
Operating profit margin4.9%
Selling, general and administrative expenses¥2,871 million
Results for the three months of the current quarterNet Sales ¥31,596 million / Operating profit ¥1,540 million / Ordinary income ¥1,638 million / Profit attributable to owners of parent for the quarter ¥2,953 million
Full-year earnings forecastNet Sales ¥150,000 million / Completed construction ¥139,000 million / Revenue from the real estate business and other businesses ¥11,000 million / Gross profit ¥21,300 million / Operating profit ¥9,500 million / Ordinary income ¥9,380 million / Profit attributable to owners of the parent ¥9,300 million
Progress against full-year forecastFirst-quarter progress against the interim forecast Net Sales 48.0% / Completed construction 48.5% / Revenue from the real estate business and other businesses 37.5% / Gross profit 64.9% / Gross profit on completed construction 62.0% / Gross profit from the real estate business and other businesses 101.0% / Selling, general and administrative expenses 50.4% / Operating profit 140.1% / Ordinary income 159.0% / Profit attributable to owners of parent for the quarter 128.4%
Self-assessment against the planGross profit exceeded the initial forecast, and operating income and all lower-line items reached the previously announced interim forecasts in the first quarter. Based on this performance, the interim forecasts were revised upward.
Segment resultsBuilding Construction Net Sales ¥21,255 million (YoY -25.6%) / Gross profit ¥2,542 million (YoY -26.4%) / Civil Engineering Business Net Sales ¥9,290 million (YoY +30.3%) / Gross profit ¥1,364 million (YoY +26.9%) / Real Estate Business Net Sales ¥1,050 million (YoY -80.7%) / Gross profit ¥505 million (YoY -73.0%)
Breakdown of Factors Affecting the ChangeNet Sales Factors reducing profit The reaction to multiple large-scale building projects reaching their peak construction phase in the same period of the previous year, Transfer of the condominium development business, Fewer sales of development properties / Factors behind the increase Progress on the substantial construction order backlog / Operating profit Factors reducing profit Impact of lower revenue, Higher expenses
Key KPIsOrders received ¥17,933 million (YoY -38.5%), Carried-forward construction work ¥161,411 million (YoY +2.5%), Balance of properties held for sale ¥18,405 million, D/E ratio 0.2 times, Equity ratio 60.2 %, Building business margin 12 %, Civil engineering business margin 14.7 %, Real estate business margin 48.1 %
Assumptions Underlying the Business OutlookConstruction Progress Construction projects are concentrated in the early stages during the first half, with construction progress gaining momentum from the second half onward / Real Estate Sale The sale of a large-scale industrial site is scheduled for the second half
Medium-term management plan targetsBusiness Portfolio Restructuring The transition period will run through fiscal 2030, with the reconfiguration targeted for completion around fiscal 2035
Financial targetsDebt-to-equity ratio 0.2 times / Equity ratio 60.2 % / DOE 5 % or higher
Annual Dividend¥110 per share
Payout ratio51.1 %
Acquisition of treasury sharesTo be considered flexibly in light of the share price level and market conditions
Orders received and order backlogOrders received ¥17,933 million (YoY -38.5%) / Carried-forward construction work ¥161,411 million (YoY +2.5%)
Key points of the Q&AImpact of the situation in the Middle East: No significant disruption to material procurement or construction delays have occurred, and the impact on results is expected to be limited, Building business margin: The margin is expected to be 9.1% for the fiscal year ending March 2027, with the improvement trend expected to continue over the medium term, Order backlog and revenue: New large-scale projects are in the early stages of construction, with their contribution to revenue expected to gain momentum from the second half onward, Real estate business: Combining property ownership, operation and sales to mitigate fluctuations in results caused by the timing of property sales, Shareholder returns: The company is committed in principle to a DOE of 5% or more and progressive dividends, while also considering share repurchases flexibly, Labor shortages and productivity: Promoting the recruitment and development of engineers, as well as the use of AI and DX
New initiativesCapital and business alliance with 株式会社Malme and a joint construction DX development project, Development of a project information platform, Use of generative AI in quantity surveying, Development of a core business data platform for group companies, A stock-based real estate business model in which land and buildings are held to generate rental income before being sold
Items this document does not state (6)
Unit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookCapital expendituresMarket Size / Share

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.

Operating income and ordinary income are expected to exceed the forecasts at the beginning of the fiscal year, owing to improved construction profitability and increased profit from the real estate business. The net income forecast also reflects extraordinary gains, including gains on the sale of cross-shareholdings and gains on the transfer of the condominium management business. The dividend was increased because net income is expected to exceed the initial forecast and because management resources generated through the review of assets will be allocated to growth investment and shareholder returns.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation | YAHAGI CONSTRUCTION CO.,LTD. (1870) timely disclosure | Komori