HASEKO (1808) Q1 2025 earnings summary

Executive summary

• Net sales rose 7.9% year-over-year to ¥284.8B, driven by growth in construction contracts and real estate sales.

• Ordinary profit fell 31.8% year-over-year to ¥15.5B due to absence of large bulk transactions and Private REIT sales.

• Operating profit fell 41.2% year-over-year to ¥13.3B due to lower gross margins and a decline in high-margin real estate sales.

• Profit attributable to owners of parent dropped 27.7% year-over-year to ¥10.8B.

• Orders received increased 7.4% year-over-year to ¥119.4B, in line with annual forecasts.

Financial highlights

• Gross profit declined 19.6% year-over-year to ¥32.7B, with operating profit down 41.2% to ¥13.3B.

• Basic earnings per share dropped to ¥39.73 from ¥54.99 year-over-year.

• Comprehensive income was ¥15.1B, down from ¥18.4B year-over-year.

• Total assets decreased to ¥1,219.4B from ¥1,351.2B at the previous fiscal year-end.

• Net assets increased to ¥514.1B from ¥511.2B at the previous fiscal year-end.

Outlook and guidance

• Orders received are progressing as planned toward the FY2024 annual forecast of ¥580B.

• Full-year net sales forecast at ¥1,180.0B, up 7.8% year-over-year.

• Full-year operating profit forecast at ¥82.0B, down 4.4% year-over-year.

• For-sale condominium deliveries and related profits are expected to concentrate in the second half of FY2024.

• No change in previously announced forecasts.