Daito Trust Construction (1878) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 3.0% YoY to ¥988.7bn; operating profit increased 14.3% to ¥79.3bn, ordinary profit rose 10.1% to ¥78.6bn and parent-attributable profit grew 28.6% to ¥64.2bn.

• FY2027 guidance was raised to ¥2,080bn sales and ¥150bn operating profit, respectively ¥30bn and ¥8bn above prior forecasts.

Financial highlights

• Gross profit rose 9.6% YoY to ¥179.0bn; SG&A increased 6.1% to ¥99.7bn, with the SG&A ratio up 0.3 points to 10.1%.

• H1 parent-attributable profit included a ¥9.87bn gain on the Solasto share transfer and a ¥4.38bn investment-securities valuation loss.

• Comprehensive income was ¥63.9bn versus ¥45.3bn a year earlier; basic EPS was ¥196.79 versus ¥150.41.

• Cash and cash equivalents reached ¥338.7bn at period-end, up ¥80.6bn during H1; operating cash flow was negative ¥31.8bn.

Outlook and guidance

• Revised FY2027 forecasts: sales ¥2,080bn, operating profit ¥150bn, ordinary profit ¥148bn, parent-attributable profit ¥109bn and EPS ¥329.

• Forecast increases versus prior guidance: sales +¥30bn, operating profit +¥8bn, ordinary profit +¥8bn and parent-attributable profit +¥1bn; higher leasing revenue and sustained occupancy supported the revision.

• FY27/3 segment sales plans: construction ¥525bn, leasing ¥1,250bn, development ¥210bn and other businesses ¥95bn; planned year-end dividend ¥84 per share and 50% payout ratio target.