Worth reading
71In focus
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
20191
¥ million (year-on-year decrease in interim revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFiscal year ending March 2027, second quarter (first half)11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales69,474 million yen-22.5%
Operating profit3,474 million yen-56.5%
Ordinary income3,586 million yen-55.1%
Net income4,829 million yen-15.8%
Gross Profit Margin13.3%
Operating profit margin5.0%
Selling, general and administrative expenses5,758 million yen
Results for the three months of the current quarter
Building construction business revenue
25,062 million yen
Civil engineering business revenue
9,404 million yen
Real estate business revenue
3,411 million yen
Full-year earnings forecast
Net Sales
150,000 million yen
Operating profit
9,500 million yen
Ordinary income
9,380 million yen
Net income
9,300 million yen
Dividend per share
¥110
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit exceeded the forecast by ¥1.1 billion, while revenue exceeded the forecast by ¥0.8 billionKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- The view is that the impact of the situation in the Middle East on materials procurement and construction will be limited
- The company aims to secure orders for the building business at the previous fiscal year's level, mainly for production facilities, logistics warehouses and condominiums for operating companies
- The full-year profit margin for the building business is expected to be 9.1%, with the plan incorporating only improvements in profitability that can reasonably be anticipated
- In the real estate business, the company is advancing initiatives based on the stock utilization model, involving the holding, operation and sale of assets
- ROE of 12% or more in fiscal 2030 is regarded as the minimum target, with the company aiming to achieve it through measures including higher profit margins in the construction business
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesBacklash from the peak construction phase of large building projects, the consolidation of 海昌 as a subsidiary, progress on the substantial construction order backlog, backlash from the sale of a large industrial site, transfer of the condominium development business
Operating profitLower revenue from the building and real estate businesses, lower sales of highly profitable industrial sites, transfer of the condominium development business, higher personnel expenses, and higher costs including amortization of goodwill related to 海昌
New initiatives
- An asset-utilization real estate business in which the company owns land and buildings, earns rental income and then sells them
- Automation and labor-saving in operations, and more sophisticated data analysis, using AI and DX
- Initiatives related to the Gate Front Hisaya Odori project
Key KPIsA metric the company considers important as a management benchmark.
- Orders received57,939 million yenYear on year against the same period last year-9.9%
- Carried-forward construction work166,950 million yenYear on year against the same period last year+11.9%
- Balance of properties held for sale16,911 million yenYear on year against the same period last year-13.7%
- D/E ratio0.2 x
- Equity ratio58 %
Segment results
Building Construction Business
Net Sales
46,317 million yen-25.7%
Gross profit
4,801 million yen-27.2%
Civil Engineering Business
Net Sales
18,694 million yen+11.5%
Gross profit
3,439 million yen+12.4%
Real Estate Business
Net Sales
4,461 million yen-57.9%
Gross profit
992 million yen-73.0%
Medium-term management plan targets
Target fiscal yearFY2030
Operating profit¥18 billion or more
Net SalesApproximately ¥220 billion
ROE12% or more
Equity ratio40% or more
Debt-to-equity ratio1.0x or lower
Growth investment (NET)¥50.0 billion
DOE5% or more (progressive dividend)
Financial targets
ROE
Actual results11.7%
Forecast12.0%
Medium-term plan target12% or more
Equity ratio
Actual results58.0%
Medium-term plan target40% or more
Debt-to-equity ratio
Actual results0.2x
Medium-term plan target1.0x or lower
Orders received and order backlog
Orders received
57,939 million yen
Carried-forward construction work
166,950 million yen
Annual Dividend
Annual dividend
¥110
Interim dividend
¥55
Year-end dividend
55 Yen forecast
Payout ratio
51.1% (forecast)| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ending March 2027, second quarter (first half) |
| Net Sales | 69,474 million yen (YoY -22.5%) |
| Operating profit | 3,474 million yen (YoY -56.5%) |
| Ordinary income | 3,586 million yen (YoY -55.1%) |
| Net income | 4,829 million yen (YoY -15.8%) |
| Gross Profit Margin | 13.3% |
| Operating profit margin | 5.0% |
| Selling, general and administrative expenses | 5,758 million yen |
| Results for the three months of the current quarter | Building construction business revenue 25,062 million yen / Civil engineering business revenue 9,404 million yen / Real estate business revenue 3,411 million yen |
| Full-year earnings forecast | Net Sales 150,000 million yen / Operating profit 9,500 million yen / Ordinary income 9,380 million yen / Net income 9,300 million yen / Dividend per share ¥110 |
| Self-assessment against the plan | Operating profit exceeded the forecast by ¥1.1 billion, while revenue exceeded the forecast by ¥0.8 billion |
| Segment results | Building Construction Business Net Sales 46,317 million yen (YoY -25.7%) / Gross profit 4,801 million yen (YoY -27.2%) / Civil Engineering Business Net Sales 18,694 million yen (YoY +11.5%) / Gross profit 3,439 million yen (YoY +12.4%) / Real Estate Business Net Sales 4,461 million yen (YoY -57.9%) / Gross profit 992 million yen (YoY -73.0%) |
| Breakdown of Factors Affecting the Change | Net Sales Backlash from the peak construction phase of large building projects, the consolidation of 海昌 as a subsidiary, progress on the substantial construction order backlog, backlash from the sale of a large industrial site, transfer of the condominium development business / Operating profit Lower revenue from the building and real estate businesses, lower sales of highly profitable industrial sites, transfer of the condominium development business, higher personnel expenses, and higher costs including amortization of goodwill related to 海昌 |
| Key KPIs | Orders received 57,939 million yen, Carried-forward construction work 166,950 million yen, Balance of properties held for sale 16,911 million yen, D/E ratio 0.2 x, Equity ratio 58 % |
| Medium-term management plan targets | Target fiscal year FY2030 / Operating profit ¥18 billion or more / Net Sales Approximately ¥220 billion / ROE 12% or more / Equity ratio 40% or more / Debt-to-equity ratio 1.0x or lower / Growth investment (NET) ¥50.0 billion / DOE 5% or more (progressive dividend) |
| Financial targets | ROE Actual results 11.7% / Forecast 12.0% / Medium-term plan target 12% or more / Equity ratio Actual results 58.0% / Medium-term plan target 40% or more / Debt-to-equity ratio Actual results 0.2x / Medium-term plan target 1.0x or lower |
| Annual Dividend | Annual dividend ¥110 / Interim dividend ¥55 / Year-end dividend 55 Yen (forecast) |
| Payout ratio | 51.1% (forecast) |
| Orders received and order backlog | Orders received 57,939 million yen / Carried-forward construction work 166,950 million yen |
| Key points of the Q&A | The view is that the impact of the situation in the Middle East on materials procurement and construction will be limited, The company aims to secure orders for the building business at the previous fiscal year's level, mainly for production facilities, logistics warehouses and condominiums for operating companies, The full-year profit margin for the building business is expected to be 9.1%, with the plan incorporating only improvements in profitability that can reasonably be anticipated, In the real estate business, the company is advancing initiatives based on the stock utilization model, involving the holding, operation and sale of assets, ROE of 12% or more in fiscal 2030 is regarded as the minimum target, with the company aiming to achieve it through measures including higher profit margins in the construction business |
| New initiatives | An asset-utilization real estate business in which the company owns land and buildings, earns rental income and then sells them, Automation and labor-saving in operations, and more sophisticated data analysis, using AI and DX, Initiatives related to the Gate Front Hisaya Odori project |
Items this document does not state (9)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.Revenue declined due to the backlash from several large building projects reaching their peak construction phase in the previous year, a decline in the number and scale of property sales, and the transfer of the condominium development business. Operating profit was affected by lower revenue, while the decline in interim net income was limited by extraordinary gains, including gains on the sale of strategic shareholdings and a gain on the transfer of the condominium management business.
How to read this page
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