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Earnings presentation8869Meiwa Estate Company LimitedReal Estate

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

In the second quarter of the fiscal year ending March 2027, revenue and profit declined in the condominium development business due to a decrease in condominium handovers, while the distribution business, led by wealth solutions, grew and consolidated revenue increased. Operating profit and below declined, but the full-year forecasts for earnings and dividends were unchanged.

Worth reading
85Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
0.7
Year-on-year change in net sales (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥59,396 million+0.7%
Operating profit¥7,374 million-4.3%
Ordinary income¥6,365 million-8.9%
Net income¥4,290 million-11.2%
Gross Profit Margin22.6 %
Operating profit margin12.4 %
Selling, general and administrative expenses¥6,035 million
Results for the three months of the current quarterSecond-quarter standalone revenue is shown by segment: development, ¥26.5 billion; distribution, ¥29.0 billion; management, ¥3.4 billion; leasing, ¥0.3 billion; and Other, ¥0.06 billion.
Full-year earnings forecast
Net Sales
¥85,000 million
Operating profit
¥7,000 million
Ordinary income
¥4,400 million
Net income for the current fiscal year
¥2,900 million
Annual Dividend
40 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。
Net Sales69.9%
Gross profit68.8%
Selling, general and administrative expenses48.3%
Operating profit105.3%
Ordinary income144.7%
Interim net profit148.0%
For-sale condominium sales contracted99%
Wealth Solutions revenue recognized96%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The development segment is progressing as planned. The earnings forecast anticipates achieving the profit target in the final year of the medium-term plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Condominium and housing sales-13,937
Distribution14,162
Management189
Leasing9
Other-19
Operating profit
Condominium and housing sales-1,936
Distribution1,650
Management0
Leasing4
Other8
Adjustments-61
Operating profit by expense category
Increase in gross profit45
Higher SG&A Expenses-378
Increase in fees paid-303
New initiatives
  • Promotion of the hotel development business
  • Acquisition of development land through real estate M&A
  • Redevelopment projects through the Condominium Renewal Consultation Center
  • In-house development and operation of the management agent arrangement service “Pochitto Work”
  • Paperless operations and greater efficiency in management services
Key KPIsA metric the company considers important as a management benchmark.
  • Number of condominium handovers355 units
    Year on year against the same period last yearDown from 620 units
  • Condominium acquisitions¥4,596 million
    Year on year against the same period last year-89.9%
  • Condominium supply value¥35,888 million
    Year on year against the same period last year+38.5%
  • Condominium contract value¥23,774 million
    Year on year against the same period last year-21.4%
  • Wealth Solutions settlements and deliveries12 properties
  • Units under management56,621 units
  • Newly contracted units1,703 units
Segment results
Condominium and housing sales
Net Sales26,581
Revenue Unit¥ million
Revenue YoY (%)-34.4
Segment profit4,464
Profit Unit¥ million
Profit yoy_pct-30.2
Distribution
Net Sales29,004
Revenue Unit¥ million
Revenue YoY (%)95.4
Segment profit2,938
Profit Unit¥ million
Profit yoy_pct128.2
Management
Net Sales3,416
Revenue Unit¥ million
Revenue YoY (%)5.9
Segment profit243
Profit Unit¥ million
Profit yoy_pct0.1
Leasing
Net Sales333
Revenue Unit¥ million
Revenue YoY (%)2.8
Segment profit125
Profit Unit¥ million
Profit yoy_pct3.8
Other
Net Sales59
Revenue Unit¥ million
Segment profit44
Profit Unit¥ million
Profit yoy_pct22.9
Medium-term management plan targets
FY3/25
Net Sales¥790 100 million
Operating profit¥47 100 million
Ordinary income¥36 100 million
Net income for the current fiscal year¥25 100 million
FY3/26
Net Sales¥800 100 million
Operating profit¥51 100 million
Ordinary income¥38 100 million
Net income for the current fiscal year¥26 100 million
FY3/27
Net Sales¥880 100 million
Operating profit¥55 100 million
Ordinary income¥41 100 million
Net income for the current fiscal year¥29 100 million
Financial targets
ROIC
FY3/26 results4.49 %
Equity ratio
End of 2Q FY ending March 202728.3 %
Annual Dividend
¥40 per share
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥59,396 million (YoY +0.7%)
Operating profit¥7,374 million (YoY -4.3%)
Ordinary income¥6,365 million (YoY -8.9%)
Net income¥4,290 million (YoY -11.2%)
Gross Profit Margin22.6 %
Operating profit margin12.4 %
Selling, general and administrative expenses¥6,035 million
Results for the three months of the current quarterSecond-quarter standalone revenue is shown by segment: development, ¥26.5 billion; distribution, ¥29.0 billion; management, ¥3.4 billion; leasing, ¥0.3 billion; and Other, ¥0.06 billion.
Full-year earnings forecastNet Sales ¥85,000 million / Operating profit ¥7,000 million / Ordinary income ¥4,400 million / Net income for the current fiscal year ¥2,900 million / Annual Dividend 40 yen
Progress against full-year forecastNet Sales 69.9% / Gross profit 68.8% / Selling, general and administrative expenses 48.3% / Operating profit 105.3% / Ordinary income 144.7% / Interim net profit 148.0% / For-sale condominium sales contracted 99% / Wealth Solutions revenue recognized 96%
Self-assessment against the planThe development segment is progressing as planned. The earnings forecast anticipates achieving the profit target in the final year of the medium-term plan.
Segment resultsCondominium and housing sales Net Sales 26,581 / Revenue Unit ¥ million / Revenue YoY (%) -34.4 / Segment profit 4,464 / Profit Unit ¥ million / Profit yoy_pct -30.2 / Distribution Net Sales 29,004 / Revenue Unit ¥ million / Revenue YoY (%) 95.4 / Segment profit 2,938 / Profit Unit ¥ million / Profit yoy_pct 128.2 / Management Net Sales 3,416 / Revenue Unit ¥ million / Revenue YoY (%) 5.9 / Segment profit 243 / Profit Unit ¥ million / Profit yoy_pct 0.1 / Leasing Net Sales 333 / Revenue Unit ¥ million / Revenue YoY (%) 2.8 / Segment profit 125 / Profit Unit ¥ million / Profit yoy_pct 3.8 / Other Net Sales 59 / Revenue Unit ¥ million / Segment profit 44 / Profit Unit ¥ million / Profit yoy_pct 22.9
Breakdown of Factors Affecting the ChangeNet Sales Condominium and housing sales -13,937 / Distribution 14,162 / Management 189 / Leasing 9 / Other -19 / Operating profit Condominium and housing sales -1,936 / Distribution 1,650 / Management 0 / Leasing 4 / Other 8 / Adjustments -61 / Operating profit by expense category Increase in gross profit 45 / Higher SG&A Expenses -378 / Increase in fees paid -303
Key KPIsIndicator name Number of condominium handovers / Value 355 units / Year on year against the same period last year Down from 620 units, Indicator name Condominium acquisitions / Value ¥4,596 million / Year on year against the same period last year ¥-89.9 million, Indicator name Condominium supply value / Value ¥35,888 million / Year on year against the same period last year ¥38.5 million, Indicator name Condominium contract value / Value ¥23,774 million / Year on year against the same period last year ¥-21.4 million, Indicator name Wealth Solutions settlements and deliveries / Value 12 properties / Year on year against the same period last year Not disclosed, Indicator name Units under management / Value 56,621 units / Year on year against the same period last year Not disclosed, Indicator name Newly contracted units / Value 1,703 units / Year on year against the same period last year Not disclosed
Medium-term management plan targetsFY3/25 Net Sales ¥790 100 million / Operating profit ¥47 100 million / Ordinary income ¥36 100 million / Net income for the current fiscal year ¥25 100 million / FY3/26 Net Sales ¥800 100 million / Operating profit ¥51 100 million / Ordinary income ¥38 100 million / Net income for the current fiscal year ¥26 100 million / FY3/27 Net Sales ¥880 100 million / Operating profit ¥55 100 million / Ordinary income ¥41 100 million / Net income for the current fiscal year ¥29 100 million
Financial targetsROIC FY3/26 results 4.49 % / Equity ratio End of 2Q FY ending March 2027 28.3 %
Annual Dividend¥40 per share
New initiativesPromotion of the hotel development business, Acquisition of development land through real estate M&A, Redevelopment projects through the Condominium Renewal Consultation Center, In-house development and operation of the management agent arrangement service “Pochitto Work”, Paperless operations and greater efficiency in management services
Items this document does not state (11)
Unit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition 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 development segment reported lower revenue and profit as condominium handovers decreased from 620 units to 355 units, while the distribution segment, driven by strong wealth solutions and brokerage services, reported higher revenue and profit, offsetting the decline in development revenue. Higher selling, general and administrative expenses also contributed to the decline in operating profit.

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Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | Meiwa Estate Company Limited (8869) timely disclosure | Komori