Report Summary:
- Date of the Report: October 7, 2024.
- Financial Year: The report covers the first nine months of the fiscal year ending November 30, 2024 (December 1, 2023 – August 31, 2024).
Key Financial Highlights:
- Revenue: ¥69,419 million, a 4.1% increase compared to the same period in the previous year.
- Operating Profit: ¥17,055 million, up by 18.0% year-on-year.
- Profit Before Tax: ¥16,090 million, a 17.6% increase from the previous year.
- Profit Attributable to Owners of the Parent: ¥11,234 million, marking a 20.0% year-on-year growth.
- Total Assets: As of August 31, 2024, total assets stood at ¥260,038 million, with total equity at ¥90,767 million.
Dividend Information:
- Dividends for the Fiscal Year Ending November 30, 2024: A forecasted dividend payment of ¥77.00 per share, indicating an increase from the ¥66.00 per share paid in the fiscal year ending November 30, 2023.
Business Segment Analysis:
-
Revitalization Business:
- Revenue: ¥33,498 million (down 19.5% year-on-year).
- Profit: ¥5,931 million (down 27.3%).
- Sold 33 properties and 89 pre-owned condominium units.
-
Development Business:
- Revenue: ¥14,975 million (up 113.5% year-on-year).
- Profit: ¥5,061 million (up 307.2%).
- Sold a logistic facility, commercial facility, and 18 detached houses.
-
Rental Business:
- Revenue: ¥5,826 million (up 20.9%).
- Profit: ¥2,906 million (up 21.2%).
- Focused on leasing activities with an increase of 9 rental properties.
-
Fund and Consulting Business:
- Revenue: ¥5,282 million (down 6.0%).
- Profit: ¥3,101 million (down 14.9%).
- Balance of assets under management reached ¥2,453,212 million.
-
Property Management Business:
- Revenue: ¥5,279 million (up 9.2%).
- Profit: ¥933 million (up 38.1%).
- Increased the total number of properties under management to 960.
-
Hotel Business:
- Revenue: ¥4,557 million (up 61.2%).
- Profit: ¥1,565 million (up 176.8%).
- Recovery in domestic and inbound travel demand led to improved performance.
Investor Considerations and Recommendations:
- Currently Holding the Stock:
- The company has shown strong growth in operating profit and overall profitability, particularly in its Development and Hotel businesses. Investors holding the stock may consider keeping it in their portfolio due to the upward revision in earnings forecasts and a projected increase in dividends.
- Not Holding the Stock:
- The positive financial trends and business expansion, along with the upward revision in earnings forecasts, indicate potential for future growth. Investors not currently holding the stock may consider investing, especially in light of the company’s stable dividend policy.
Special Actions to Note:
- The company is engaging in steady purchasing activities for future sources of income.
- The upward revision of the full-year earnings forecast reflects confidence in the company’s performance and market conditions.
Disclaimer:
The above recommendations are based solely on the financial report provided. Actual investment decisions should consider broader market conditions, individual investment goals, and risk tolerance. This analysis does not guarantee any specific investment outcome.
