Revenue forecast sharply cut, requiring high-margin earnings in the second half to maintain the profit plan

FY2026-H1 revenue was ¥12.720 billion, down 42.6% from ¥22.155 billion in the same period of the previous year. Real estate transaction revenue was particularly weak, at ¥6.958 billion, down 58.5% year on year, while ADVANTAGE CLUB revenue also fell 61.7% to ¥6.179 billion. In contrast, property consulting revenue rose 6.8% to ¥5.761 billion, partly absorbing the decline in revenue.

In its interim earnings presentation, the company explained that ADVANTAGE CLUB sales were subdued because the details of the tax reforms would not become clear until autumn or later. Against this backdrop, the full-year revenue forecast was cut by ¥10.280 billion, or 26.4%, from the initial ¥39.000 billion to ¥28.720 billion. The breakdown is ¥12.660 billion for property consulting and ¥16.060 billion for real estate transactions, meaning that the revenue downgrade was concentrated almost entirely in real estate transactions.

By contrast, the initial forecasts for gross profit of ¥8.800 billion, SG&A expenses of ¥4.800 billion, operating income of ¥4.000 billion, ordinary income of ¥3.850 billion and net income attributable to owners of the parent of ¥2.650 billion were unchanged. At the interim stage, progress rates were 44.3% for revenue, 44.0% for operating income, 44.2% for ordinary income and 43.0% for net income, with profit progress broadly keeping pace with revenue. In Q3, we will assess the feasibility of the plan to offset a revenue shortfall through margin improvement by checking when ADVANTAGE CLUB sales resume, the progress of inventory sales and the accumulation of property consulting revenue.