HASEKO (1808) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥602,347m, up 1.2% YoY; operating profit rose 34.2% to ¥55,485m, ordinary profit 37.9% to ¥54,266m and parent-attributable profit 47.2% to ¥35,647m.

• Net sales were below the ¥630.0bn interim forecast, while ordinary profit exceeded the ¥47.0bn forecast; improved construction contract profitability, earlier income-property sales and lower SG&A supported profit.

Financial highlights

• Gross profit increased 21.2% to ¥101,688m from ¥83,889m; completed construction contracts contributed ¥54.0bn, up 26.6%, and real estate sales ¥31.8bn, up 22.5%.

• Net sales included completed construction contracts of ¥307.3bn (+0.9%), real estate sales of ¥228.3bn (+0.3%) and leasing and management of ¥49.8bn (+6.0%).

• SG&A rose 8.6% to ¥46.2bn; profit before income taxes was ¥54,069m, up 38.2% YoY.

• Completed construction contract gross margin was 17.6%, up 3.6 percentage points; operating margin was 9.2%, up 2.3 points, and ordinary profit margin was 9.0%, up 2.4 points.

Outlook and guidance

• FY2027 forecasts remain unchanged: net sales ¥1,380bn, operating profit ¥110bn, ordinary profit ¥105bn and parent-attributable profit ¥66bn.

• H1 progress against full-year forecasts was 43.6% for sales, 50.4% for operating profit, 51.7% for ordinary profit and 54.0% for parent-attributable profit.

• FY2027 basic EPS forecast is ¥249.16; full-year non-consolidated orders forecast is ¥730bn, with H1 orders of ¥383.9bn representing 52.6% progress.

• Forecasts are based on information and assumptions available at release; actual results may differ due to various factors.