Can Q1's strong performance reach the 50% mark against the full-year plan in H1?

Q1 revenue was ¥380,523 million and operating profit was ¥25,743 million, representing year-on-year increases of 16.7% and 81.3%, respectively. Calculated simply against the full-year forecasts, progress was approximately 22.9% for revenue (¥380,523 million ÷ ¥1,663,000 million) and approximately 24.8% for operating profit (¥25,743 million ÷ ¥103,600 million), meaning that profit progress was approximately 1.9 percentage points ahead of revenue progress.

The benchmark for achieving half of the full-year plan in H1 is ¥831,500 million in revenue and ¥51,800 million in operating profit. Q1 results alone do not indicate the seasonality of the second half or the timing of sales, so in H1 it will be necessary to assess not only whether these results reach the 50% level, but also whether operating profit continues to lead revenue progress. As of Q1, there had been no revision to the earnings forecasts, and the full-year operating profit forecast remained unchanged at ¥103,600 million.

By segment, Q1 revenue was ¥102,924 million for the 一建設 group, ¥76,988 million for the 飯田産業 group, ¥57,747 million for the 東栄住宅 group, ¥43,187 million for the タクトホーム group, ¥73,902 million for the アーネストワン group and ¥17,048 million for アイディホーム. Year-on-year growth was 19.3%, 21.4%, 15.1%, 6.5%, 16.3% and 22.5%, respectively. All segments recorded higher revenue, although growth ranged from 6.5% to 22.5%.

The company attributes the performance to the employment and income environment, personal consumption and a maintained supply-demand balance amid low market inventories, as well as appropriate inventory levels, its area strategy, and land purchases and sales. However, the Q1 disclosure does not provide the contribution of each factor, selling prices, inventory turnover, or orders and order backlogs. In H1, in addition to progress toward ¥831,500 million in revenue and ¥51,800 million in operating profit, it will be important to determine whether growth across the 6 segments was driven by unit sales or prices, and whether any additional information is provided that would warrant changing the full-year forecasts.