Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
49.1
Year-on-year decline in operating profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationSecond quarter (interim period) of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales16,833 Millions of yen-3.1%
Operating profit2,033 Millions of yen-49.1%
Ordinary income1,239 Millions of yen-63.7%
Net income810 Millions of yen-65.9%
Gross Profit Margin22.9%
Operating profit margin12.1%
Full-year earnings forecast
Net Sales
61,000 Millions of yen
Operating profit
17,500 Millions of yen
Ordinary income
16,700 Millions of yen
Profit attributable to owners of the parent
11,600 Millions of yen
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。
Operating profit
Cumulative second-quarter operating profit / full-year operating profit plan11.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in line with expectations against the full-year planBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Gross profit decline due to lower sales-171 Millions of yen
- Lower gross profit due to changes in the gross profit margin-1,486 Millions of yen
- Higher sales commissions-111 Millions of yen
- Increase in personnel expenses-100 Millions of yen
- Increase in other SG&A expenses-91 Millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- AssumptionsRecognition of Revenue from Large ProjectsDetailsRecognition of revenue from large projects in the DX Real Estate Value Enhancement Business is concentrated in the second half
New initiatives
- Business cooperation agreements with 3 companies concerning hospice housing and group homes for people with disabilities in Hokkaido
- Promotion of an industrial park development project in Koga, Fukuoka Prefecture
- Active expansion of residential hotels as a growth area
- Introduction of a shareholder benefit program
Key KPIsA metric the company considers important as a management benchmark.
- Inventory741 Hundreds of millions of yen
- Balance of real estate under development for sale469 Hundreds of millions of yen
- Balance of properties held for sale272 Hundreds of millions of yen
Segment results
DX New-Build Real Estate Business
Sales
4,919 Millions of yen-34.8%
Gross profit
1,427 Millions of yen-62.5%
DX Redevelopment Real Estate Business
Sales
8,744 Millions of yen+52.4%
Gross profit
1,268 Millions of yen+30.1%
DX Real Estate Value-Enhancement Business
Sales
2,534 Millions of yen-29.0%
Gross profit
767 Millions of yen+89.0%
Real Estate Leasing Business
Sales
599 Millions of yen+17.5%
Gross profit
351 Millions of yen+16.9%
Financial targets
DOE
Target6% floor
Annual Dividend
Annual dividend per share¥174.00 per share (forecast)
Interim¥59.00
End of period¥115.00
Payout ratio
34.3% (forecast for the fiscal year ending December 2026), 40% target| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending December 2026 |
| Net Sales | 16,833 Millions of yen (YoY -3.1%) |
| Operating profit | 2,033 Millions of yen (YoY -49.1%) |
| Ordinary income | 1,239 Millions of yen (YoY -63.7%) |
| Net income | 810 Millions of yen (YoY -65.9%) |
| Gross Profit Margin | 22.9% |
| Operating profit margin | 12.1% |
| Full-year earnings forecast | Net Sales 61,000 Millions of yen / Operating profit 17,500 Millions of yen / Ordinary income 16,700 Millions of yen / Profit attributable to owners of the parent 11,600 Millions of yen |
| Progress against full-year forecast | Operating profit 11.6% |
| Self-assessment against the plan | Progress in line with expectations against the full-year plan |
| Segment results | DX New-Build Real Estate Business Sales 4,919 Millions of yen (YoY -34.8%) / Gross profit 1,427 Millions of yen (YoY -62.5%) / DX Redevelopment Real Estate Business Sales 8,744 Millions of yen (YoY +52.4%) / Gross profit 1,268 Millions of yen (YoY +30.1%) / DX Real Estate Value-Enhancement Business Sales 2,534 Millions of yen (YoY -29.0%) / Gross profit 767 Millions of yen (YoY +89.0%) / Real Estate Leasing Business Sales 599 Millions of yen (YoY +17.5%) / Gross profit 351 Millions of yen (YoY +16.9%) |
| Breakdown of Factors Affecting the Change | Factors Gross profit decline due to lower sales / Amount -171 Millions of yen, Factors Lower gross profit due to changes in the gross profit margin / Amount -1,486 Millions of yen, Factors Higher sales commissions / Amount -111 Millions of yen, Factors Increase in personnel expenses / Amount -100 Millions of yen, Factors Increase in other SG&A expenses / Amount -91 Millions of yen |
| Key KPIs | Indicator name Inventory / Value 741 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Balance of real estate under development for sale / Value 469 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Balance of properties held for sale / Value 272 Hundreds of millions of yen / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Assumptions Recognition of Revenue from Large Projects / Details Recognition of revenue from large projects in the DX Real Estate Value Enhancement Business is concentrated in the second half |
| Financial targets | DOE Target 6% floor / Actual results Not disclosed |
| Annual Dividend | Annual dividend per share ¥174.00 per share (forecast) / Interim ¥59.00 / End of period ¥115.00 |
| Payout ratio | 34.3% (forecast for the fiscal year ending December 2026), 40% target |
| New initiatives | Business cooperation agreements with 3 companies concerning hospice housing and group homes for people with disabilities in Hokkaido, Promotion of an industrial park development project in Koga, Fukuoka Prefecture, Active expansion of residential hotels as a growth area, Introduction of a shareholder benefit program |
Items this document does not state (12)
Selling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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 decline in gross profit margin was primarily attributable to changes in the sales mix by business and differences in the composition of projects in the DX New-Build Real Estate Business compared with the same period of the previous year. Factors reducing profit included lower gross profit due to lower revenue, lower gross profit due to changes in the gross profit margin, and increases in sales commissions, personnel expenses and other selling, general and administrative expenses.
How to read this page
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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.