Full-year guidance disclosed, but first-quarter earnings progress lags revenue

First-quarter revenue for the fiscal year ending March 2027 was ¥35,278 million, down 4.9% year on year; operating profit was ¥2,035 million, down 19.2%; ordinary profit was ¥1,715 million, down 27.9%; and net profit attributable to owners of the parent was ¥1,116 million, down 30.4%. The decline in revenue and profit was mainly attributable to the reaction to the completion and handover of a large condominium project in the same quarter of the previous year.

This results release also disclosed full-year guidance for the fiscal year ending March 2027, which had been undecided at the start of the period, of ¥145,000 million in revenue, ¥9,100 million in operating profit, ¥7,000 million in ordinary profit and ¥4,600 million in net profit. First-quarter progress was 24.3% for revenue, 22.4% for operating profit, 24.5% for ordinary profit and 24.3% for net profit. Revenue, ordinary profit and net profit were close to the 25% implied by simple quarterly allocation, while operating profit was somewhat behind.

In the previous fiscal year, the year ended March 2026, revenue was ¥138,332 million and operating profit was ¥8,294 million. The current full-year forecast therefore targets year-on-year growth of 4.8% in revenue and 9.7% in operating profit. Although the company considers the first-quarter result broadly in line with plan, it is targeting full-year profit growth after falling below the high condominium sales recorded in the same quarter of the previous year. The extent to which handovers and profit can be accumulated in the second half will therefore be important.

For FY2027-H1, revenue of at least ¥72,500 million and operating profit of approximately ¥4,550 million would represent a benchmark equivalent to 50% of the full-year forecast. However, because property sales tend to see handovers concentrated in the second half, particularly at the fiscal year-end, performance should not be judged solely on whether it falls short of a simple 50% benchmark. The number of condominium handovers, growth in custom-designed homes, and the profit contributions from residential distribution, rental and property management should also be assessed.