Worth reading
74In focus
Scored from 5 of 6 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
6.49
¥100 million (operating profit budget overrun)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings briefing transcriptSecond quarter of the fiscal year ending November 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥245.11 100 million
Operating profit¥11.89 100 million
Net income¥5.63 100 million
Gross Profit Margin
Rate14.7% (standard condominiums, second quarter)
Year on year against the same period last year+1.2 percentage points
Results for the three months of the current quarterStandard condominium selling price: ¥33 million, up 24.5% year on year; gross profit margin: 14.7%, up 1.2 percentage points year on year. The combined construction and sales period for standard condominiums was 219 days. Sales contract value increased 0.6% year on year. Seven premium condominium properties had been sold by the end of the interim period, and five properties, worth approximately ¥2.3 billion, had been contracted for sale from the second half onward.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Profit exceeded 200% of the first-half budget achievement rate. New detached-home sales were broadly in line with plan through the second quarter.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Standard condominium gross profit margin / Answer The benefit of shorter sales periods is expected to continue in the second half. The Company expects to maintain at least the gross profit margin achieved through the second quarter, with further improvement possible if the number of properties sold early increases.
- Issues Profit level under the medium-term management plan / Answer The Company explained that it can achieve its current forecast by selling inventory without relying on large-scale projects, and that it can also achieve an additional profit increase if the large-scale project scheduled for the fourth quarter is completed as planned.
- Issues Timing shift for the large-scale solution project / Answer The project is expected to be recorded in the fourth quarter, and no delay beyond that timing is currently anticipated, although the Company will prepare for this possibility, including with respect to other projects.
- Issues Long-held inventory and construction periods / Answer The Company believes that the disposal of long-held inventory has been completed. It is avoiding disruptions to construction by ordering materials early and assigning priorities.
- Issues Procurement policy for premium condominiums / Answer For unique properties in central Tokyo, procurement will prioritize profit, while in areas such as Fukuoka and Okinawa, it will prioritize inventory turnover.
- Issues Next medium-term management plan and growth drivers / Answer The Company plans to formulate a new medium-term management plan and announce it when it releases its full-year results. Standard, premium and solution projects will all serve as growth drivers.
- Issues Demand from first-time buyers amid higher prices and interest rates / Answer The Company believes that the environment for home-buying demand has not changed, as rents have also been rising.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Gross profit above budgetApproximately ¥220 million
- SG&A expense controlApproximately ¥429 million
- Variable cost control¥67 million
- Fixed cost savings from selling price and inventory turnover effectsApproximately ¥100 million
- Overall fixed cost control¥361 million
- Large-scale development project in the prior-year period¥2.87 billion (recorded in the prior-year first half)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Forecasts cautiously factor in risks related to market conditions. Numerical assumptions: Not disclosed.New initiatives
- Change the designation of “development” projects to “solution” projects
- Form a specialized team to develop solution projects into a core profit driver
- Build an AI screening model for procurement and begin using it at selected branches
- Enhance procurement decisions through area analysis, extraction of similar projects and risk-pattern learning
- Formulate a new medium-term management plan and announce it when the full-year results are released
Key KPIsA metric the company considers important as a management benchmark.
- Procurement contract value
- Sales contract valueYear on year against the same period last year+0.6% (three months of the second quarter)
- Number of appraisalsYear on year against the same period last yearTurned positive
- End-user inventoryIncreased
- Owner-change inventoryDecreased
- Number of inventory unitsDown 228 units from the prior fiscal year-endYear on year against the same period last yearCompared with the previous year-end
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Standard condominium selling price¥33 millionYear on year against the same period last year+24.5%
- Combined standard condominium sales and construction period219 daysYear on year against the same period last yearShortened
- Number of premium condominium properties sold7 properties (by the end of the interim period); 5 properties contracted for sale from the second half onward
Medium-term management plan targets
The Company aims to exceed the profit level set out in its medium-term management plan. Specific target figures and fiscal years: Not disclosed.Market Size / Share
Market inventory of premium condominiums has increased. Although the market is now centered on foreign customers, with a slight decline in individual Japanese customers, market size and share figures are Not disclosed.| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | Second quarter of the fiscal year ending November 2026 |
| Net Sales | ¥245.11 100 million |
| Operating profit | ¥11.89 100 million |
| Net income | ¥5.63 100 million |
| Gross Profit Margin | Rate 14.7% (standard condominiums, second quarter) / Year on year against the same period last year +1.2 percentage points |
| Results for the three months of the current quarter | Standard condominium selling price: ¥33 million, up 24.5% year on year; gross profit margin: 14.7%, up 1.2 percentage points year on year. The combined construction and sales period for standard condominiums was 219 days. Sales contract value increased 0.6% year on year. Seven premium condominium properties had been sold by the end of the interim period, and five properties, worth approximately ¥2.3 billion, had been contracted for sale from the second half onward. |
| Self-assessment against the plan | Profit exceeded 200% of the first-half budget achievement rate. New detached-home sales were broadly in line with plan through the second quarter. |
| Breakdown of Factors Affecting the Change | Factors Gross profit above budget / Amount Approximately ¥220 million, Factors SG&A expense control / Amount Approximately ¥429 million, Factors Variable cost control / Amount ¥67 million, Factors Fixed cost savings from selling price and inventory turnover effects / Amount Approximately ¥100 million, Factors Overall fixed cost control / Amount ¥361 million, Factors Large-scale development project in the prior-year period / Amount ¥2.87 billion (recorded in the prior-year first half) |
| Key KPIs | Indicator name Procurement contract value / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Sales contract value / Value Not disclosed / Year on year against the same period last year +0.6% (three months of the second quarter), Indicator name Number of appraisals / Value Not disclosed / Year on year against the same period last year Turned positive, Indicator name End-user inventory / Value Increased / Year on year against the same period last year Not disclosed, Indicator name Owner-change inventory / Value Decreased / Year on year against the same period last year Not disclosed, Indicator name Number of inventory units / Value Down 228 units from the prior fiscal year-end / Year on year against the same period last year Compared with the previous year-end |
| Unit price and quantity metrics | Indicator name Standard condominium selling price / Value ¥33 million / Year on year against the same period last year +24.5%, Indicator name Combined standard condominium sales and construction period / Value 219 days / Year on year against the same period last year Shortened, Indicator name Number of premium condominium properties sold / Value 7 properties (by the end of the interim period); 5 properties contracted for sale from the second half onward / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Forecasts cautiously factor in risks related to market conditions. Numerical assumptions: Not disclosed. |
| Medium-term management plan targets | The Company aims to exceed the profit level set out in its medium-term management plan. Specific target figures and fiscal years: Not disclosed. |
| Market Size / Share | Market inventory of premium condominiums has increased. Although the market is now centered on foreign customers, with a slight decline in individual Japanese customers, market size and share figures are Not disclosed. |
| Key points of the Q&A | Issues Standard condominium gross profit margin / Answer The benefit of shorter sales periods is expected to continue in the second half. The Company expects to maintain at least the gross profit margin achieved through the second quarter, with further improvement possible if the number of properties sold early increases., Issues Profit level under the medium-term management plan / Answer The Company explained that it can achieve its current forecast by selling inventory without relying on large-scale projects, and that it can also achieve an additional profit increase if the large-scale project scheduled for the fourth quarter is completed as planned., Issues Timing shift for the large-scale solution project / Answer The project is expected to be recorded in the fourth quarter, and no delay beyond that timing is currently anticipated, although the Company will prepare for this possibility, including with respect to other projects., Issues Long-held inventory and construction periods / Answer The Company believes that the disposal of long-held inventory has been completed. It is avoiding disruptions to construction by ordering materials early and assigning priorities., Issues Procurement policy for premium condominiums / Answer For unique properties in central Tokyo, procurement will prioritize profit, while in areas such as Fukuoka and Okinawa, it will prioritize inventory turnover., Issues Next medium-term management plan and growth drivers / Answer The Company plans to formulate a new medium-term management plan and announce it when it releases its full-year results. Standard, premium and solution projects will all serve as growth drivers., Issues Demand from first-time buyers amid higher prices and interest rates / Answer The Company believes that the environment for home-buying demand has not changed, as rents have also been rising. |
| New initiatives | Change the designation of “development” projects to “solution” projects, Form a specialized team to develop solution projects into a core profit driver, Build an AI screening model for procurement and begin using it at selected branches, Enhance procurement decisions through area analysis, extraction of similar projects and risk-pattern learning, Formulate a new medium-term management plan and announce it when the full-year results are released |
Items this document does not state (15)
Ordinary incomeOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastSegment resultsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog
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.As selective procurement gained traction, selling prices rose and faster inventory turnover improved the gross profit margin. SG&A expenses were also controlled by limiting inventory levels and required staffing, and reducing sales commissions, inventory carrying costs, personnel expenses, advertising and promotional expenses, and other costs. Compared with the same period of the prior year, the large-scale development project recorded in the prior year is scheduled to be recorded in the fourth quarter of the current fiscal year, while steady condominium and detached-home deliveries supported revenue.
How to read this page
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