Worth reading
41Recurring
Scored from 5 of 6 sectionsDirection
Neutral
Direction inferred from the company’s description.Scale
26
% (FY2027/3 gross profit margin target)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFiscal year ending March 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Gross Profit Margin
Rate26% (FY2027/3 target)
Full-year earnings forecast
Gross Profit Margin26% (FY2027/3)
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Impact of tax reform on rental properties: The company expects no impact because its strategy is based on medium- to long-term asset succession and investment, and views the reform as a tailwind by encouraging early purchases
- Construction completion delays due to the situation in the Middle East: No delays have been confirmed for recently completed properties, although some notices of delays in material deliveries have been received; a prolonged situation could have an impact
- Higher material costs and procurement uncertainty due to the situation in the Middle East: The company is responding with early ordering and believes the impact on planned results will not be significant, although an impact is possible depending on future developments
- Response to rising costs: Reflect cost increases at the time of procurement and pass the value added through to rents and sales prices
- FY2027/3 gross profit margin: A 26% margin is planned, with the company aiming to build on a base level of 25%
- M&A policy: The company is considering partnerships with companies that can strengthen development capabilities and enhance property value
- Challenges in maintaining ROE of 30% or higher: Declining margins due to higher construction costs and material prices, and the impact of the situation in the Middle East on gross profit margins and inventory turnover
- Development areas: The company will focus on Tokyo's three Jōnan wards while expanding into central Tokyo
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- FY2027/3 gross profit margin26%
- Base level for gross profit margin25%
New initiatives
- Early ordering of necessary construction materials
- Promoting sales through land-first settlement
- Property development in central Tokyo
- Considering partnerships, including M&A, to strengthen development capabilities and enhance property value
Key KPIsA metric the company considers important as a management benchmark.
- ROEAt least 30%
Medium-term management plan targets
Maintain ROE of 30% or higher (target year: Not disclosed)Financial targets
Target valueROE of 30% or higher
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Gross Profit Margin | Rate 26% (FY2027/3 target) / Year on year against the same period last year Not disclosed |
| Full-year earnings forecast | Gross Profit Margin 26% (FY2027/3) |
| Key KPIs | Indicator name ROE / Value At least 30% / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Item FY2027/3 gross profit margin / Value 26%, Item Base level for gross profit margin / Value 25% |
| Medium-term management plan targets | Maintain ROE of 30% or higher (target year: Not disclosed) |
| Financial targets | Target value ROE of 30% or higher / Actual value Not disclosed |
| Key points of the Q&A | Impact of tax reform on rental properties: The company expects no impact because its strategy is based on medium- to long-term asset succession and investment, and views the reform as a tailwind by encouraging early purchases, Construction completion delays due to the situation in the Middle East: No delays have been confirmed for recently completed properties, although some notices of delays in material deliveries have been received; a prolonged situation could have an impact, Higher material costs and procurement uncertainty due to the situation in the Middle East: The company is responding with early ordering and believes the impact on planned results will not be significant, although an impact is possible depending on future developments, Response to rising costs: Reflect cost increases at the time of procurement and pass the value added through to rents and sales prices, FY2027/3 gross profit margin: A 26% margin is planned, with the company aiming to build on a base level of 25%, M&A policy: The company is considering partnerships with companies that can strengthen development capabilities and enhance property value, Challenges in maintaining ROE of 30% or higher: Declining margins due to higher construction costs and material prices, and the impact of the situation in the Middle East on gross profit margins and inventory turnover, Development areas: The company will focus on Tokyo's three Jōnan wards while expanding into central Tokyo |
| New initiatives | Early ordering of necessary construction materials, Promoting sales through land-first settlement, Property development in central Tokyo, Considering partnerships, including M&A, to strengthen development capabilities and enhance property value |
Items this document does not state (21)
Net SalesOperating profitOrdinary incomeNet incomeOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket 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.The company views increases in construction costs, material prices and labor costs as structural, and will make profitability decisions at the time of procurement based on these cost increases. Its policy is to secure earnings by adding design, livability and experiential value to properties and reflecting this value in rents and sales prices. Regarding the situation in the Middle East, the company is responding by placing early orders for necessary construction materials.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.