JK Holdings (9896) investor relations material

Executive summary

• Revenue increased 1.4% year-over-year to ¥398.8 billion, but net income declined 5.8% to ¥4.03 billion and operating profit fell 12.6%.

• Mainstay wholesale business achieved revenue growth despite a challenging environment with fewer housing starts.

• M&A activities and organizational restructuring contributed to maintaining sales scale and capital efficiency.

• The group launched a new three-year mid-term plan focused on strengthening core businesses, expanding business domains, and sustainable management.

Financial highlights

• Operating profit: ¥6.43 billion (down 12.6% year-over-year); ordinary profit: ¥7.15 billion (down 8.3%).

• Net income attributable to shareholders: ¥4.03 billion (down 5.8%).

• Dividend per share: ¥55 (payout ratio 36.9%).

• Cash and equivalents at year-end were ¥43.9 billion, down from ¥50.3 billion.

• EPS: ¥148.87; book value per share: ¥2,445.44.

Outlook and guidance

• FY2027 forecast: revenue up 2.1% to ¥407.0 billion, net income up 4.1% to ¥4.2 billion, operating profit ¥6.6 billion (+2.6%), EPS ¥160.15.

• Dividend forecast raised to ¥60 per share (payout ratio 37.5%).

• Focus on expanding existing business share, adjacent business growth, and further M&A.

• Management expects continued economic uncertainty due to geopolitical risks, commodity price volatility, and domestic inflation.

• Continued efforts to improve unprofitable businesses.