1Q progress was sluggish, putting H1 focus on second-half dependence

Consolidated revenue in 1Q FY2027 was ¥191,064 million, operating income was ¥25,540 million, ordinary income was ¥21,648 million and net income attributable to owners of the parent was ¥14,728 million. Year on year, revenue fell 13.7%, operating income fell 30.6%, ordinary income fell 36.2% and net income fell 36.5%, indicating a sharper decline in earnings than in revenue.

The company’s full-year forecasts are revenue of ¥1,080,000 million, operating income of ¥140,000 million, ordinary income of ¥125,000 million and net income of ¥86,000 million, with no revisions as of 1Q. Progress against the full-year forecasts was approximately 17.7% for revenue, 18.2% for operating income and 17.1% for net income, all below the 25% share of the fiscal year elapsed. Seasonality limits a simple comparison, but 1Q alone cannot be described as a comfortable start against the full-year plan.

Using 50% of the full-year forecasts as a mechanical H1 progress benchmark would require cumulative H1 revenue of ¥540,000 million and operating income of ¥70,000 million. After deducting 1Q results, standalone 2Q revenue of ¥348,936 million and operating income of ¥44,460 million would be required. These figures are reference values based on a pro rata allocation of the full-year plan, not the company’s disclosed H1 forecasts. At the next results announcement, actual performance against these benchmarks should therefore be reviewed alongside seasonality arising from delivery schedules and the timing of revenue recognition for projects.

The 1Q business overview indicates that housing, urban development, overseas operations and asset management saw declines in both revenue and profit, while brokerage and CRE and property management posted higher revenue but lower profit. However, the company has not disclosed specific drivers such as sales volume, pricing, completion and delivery timing, costs or SG&A expenses. If the full-year forecast remains unchanged, key areas to monitor will be which segments drive the H1 recovery and whether there are signs by 2Q that the full-year plan needs to be revised.