From a first-half loss to a full-year profit, requiring more collections and sales in the second half than ever before

FY2026-H1 revenue was ¥906 million, representing progress of approximately 34.9% against the full-year forecast of ¥2,598 million. Using 50% as a simple benchmark at the interim stage, revenue was approximately 15.1 percentage points below that level. Operating loss was ¥178 million, ordinary loss was ¥165 million, and interim net loss attributable to owners of the parent was ¥167 million, leaving all major profit measures in the red.

The company, however, has not revised its full-year forecasts of revenue of ¥2,598 million, operating profit of ¥235 million, ordinary profit of ¥237 million, and net profit attributable to owners of the parent of ¥143 million. On this basis, the second half will need to generate revenue of ¥1,692 million, operating profit of ¥413 million, ordinary profit of ¥402 million, and net profit of ¥310 million. FY2025-H2, calculated from the FY2025 results, recorded revenue of ¥1,346 million and operating profit of ¥202 million. This means that the second half of the current fiscal year will require revenue growth of approximately 25.7% and operating profit growth of approximately 104.5% year on year.

The recovery in the second half depends on collections from collateral-backed cases, settlements of real estate transactions, and an increase in dispatched personnel. In FY2026-H1, some collections from collateral-backed cases were pushed back to the second half or later, while settlement of contracted land-with-leasehold-rights properties was also moved to Q3. The latest disclosure does not show the amount by which these factors will affect operating profit or the schedule for collections and settlements by project. Accordingly, although the full-year forecast remains unchanged numerically, it assumes that several large projects will be recognized simultaneously in Q3.

For FY2026-Q3, the key checks will be whether cumulative revenue progress has risen materially from at least 34.9% and whether the operating loss has narrowed. Particular focus will be on the breakdown of collections, sales, and dispatch operations supporting the ¥413 million of operating profit required in the second half, the feasibility of achieving a profit margin above that of the previous second half, and whether the full-year forecast is revised. The annual dividend forecast remains unchanged at ¥10.00, but no quantitative shareholder return criteria, such as a payout ratio or DOE, have been provided. Attention will therefore also focus on the explanation for maintaining the dividend despite losses.