Can the FY2027 revenue and earnings growth plan be confirmed to accelerate from FY2027-Q1?

Revenue was ¥54,131 million and operating profit was ¥4,124 million in FY2026, increases of 3.4% and 4.5%, respectively, from the previous fiscal year. By contrast, ordinary profit was ¥3,508 million, down 0.5%, and net income attributable to owners of the parent was ¥2,045 million, also down. This means that growth at the top line and operating-profit level does not flow through directly to net income. For FY2027, the company expects revenue of ¥60,000 million, operating profit of ¥5,100 million, ordinary profit of ¥4,200 million and net income attributable to owners of the parent of ¥2,600 million. Operating profit is planned to grow 23.6%, well above the 10.8% planned growth in revenue.

For the next FY2027-Q1, the key comparison will be with the year-earlier revenue of ¥10,941 million, operating profit of ¥460 million, ordinary profit of ¥332 million and net income attributable to owners of the parent of ¥211 million. Cumulative FY2026-Q2 revenue was ¥23,965 million and operating profit was ¥1,351 million, while cumulative FY2026-Q3 revenue was ¥38,288 million and operating profit was ¥2,385 million. Because the timing of project recognition varies by quarter, it would not be appropriate to assess the full-year plan based solely on the standalone Q1 figures. However, it will be important to see whether the company provides specific explanations of progress at the end of Q1, planned sales and handovers in the second half, and profit plans by segment.

The increase in profit in FY2026 was driven substantially by growth in the Rental DX Property Management business, while in the Buy-Sell DX Invest business, the sale of properties held for sale was delayed relative to the plan. In FY2027-Q1, it will be necessary to confirm not only year-on-year revenue growth, but also which projects in the Buy-Sell DX Invest business will be recognized in revenue and profit, and when, as well as the impact of delays on inventory and borrowings. The earnings forecast discloses annual revenue and profit figures, but not the quarterly allocation of the forecast or the recognition assumptions for individual projects.

When assessing the ¥5,100 million operating-profit plan, it will be necessary to confirm whether the operating margin improves alongside revenue growth. The operating margin was 7.6% in FY2026, up 0.1 percentage point from 7.5% in the previous fiscal year. At the next earnings announcement, both operating profit and ordinary profit should be examined to determine whether the high profitability of the Rental DX Property Management business is being maintained, whether the cost burden of the rental brokerage and other businesses is increasing, and whether higher interest rates are depressing ordinary profit through higher non-operating expenses.