Semba Research Memo (5): Interim period of the fiscal year ending December 2026 saw growth in the “Office, Leisure Facilities, etc.” segment, but earnings declined due to upfront investment in human resources (FISCO)

Semba's consolidated results for the interim period of the fiscal year ending December 2026 were revenue of ¥15,112 million, down 3.9% year on year, operating income of ¥616 million, down 48.0%, ordinary income of ¥704 million, down 39.0%, and interim net income attributable to owners of the parent of ¥455 million, down 40.2%, resulting in lower revenue and earnings. The Office and Leisure Facilities, etc. segment grew, while the Large-scale Stores and Complex Commercial Facilities segment posted lower revenue, and the company as a whole is expected to see a slight decline. Overseas, progress on projects in Taiwan and Singapore contributed to revenue of ¥1,958 million, up 13.7% year on year.

Gross profit declined to ¥2,766 million, while selling, general and administrative expenses were ¥2,150 million. As projects become larger and more value-added, the company is strengthening its workforce, and higher personnel expenses are expected to remain the main factor going forward. The equity ratio was 65.4%, and the company maintained debt-free operations. Cash and deposits were ¥12,779 million, and total assets declined to ¥21,658 million.

The full-year forecast for the fiscal year ending December 2026 remains unchanged at revenue of ¥37,000 million, operating income of ¥2,350 million, ordinary income of ¥2,350 million, and net income attributable to owners of the parent of ¥1,600 million. The order backlog in the Office and Leisure Facilities, etc. segment remains strong. Revenue is expected to be concentrated in the second half, with the order backlog up 23.9% from the end of the previous fiscal year to ¥10,049 million. Second-half revenue is expected to be approximately 2.2 times the order backlog.