Hulic (3003) Q4 2024 earnings summary

Executive summary

• Achieved record-high operating profit (JPY163.4 bn, +11.7% YoY), ordinary profit (JPY154.3 bn, +12.2% YoY), and profit attributable to owners (JPY102.3 bn, +8.1% YoY), surpassing revised forecasts and driven by stable leasing and robust real estate sales.

• ROE maintained at 12.8%; annual dividend per share increased to 54.0 yen (+4.0 yen YoY), marking the 16th consecutive year of record profit and dividend growth.

• Net invested amount reached JPY460.5 bn (+JPY283.3 bn YoY), with significant acquisitions and project completions in Ginza and other focus areas.

• Continued execution of Medium- to Long-term Management Plan, focusing on innovation, portfolio reshuffling, and sustainable value improvement.

• Secondary offering resolved overhang concerns, expanded shareholder base, and increased stock liquidity.

Financial highlights

• Operating revenue rose 32.5% YoY to JPY591.6 bn; operating profit up 11.7% YoY to JPY163.4 bn; ordinary profit up 12.2% YoY to JPY154.3 bn; profit attributable to owners increased 8.1% YoY to JPY102.3 bn.

• EPS: 141.81 yen for FY2024; BPS: 1,093.78 yen; all profit items at record highs.

• Total assets: JPY3,048.9 bn (+23% YoY); Net assets: JPY856.3 bn (+11% YoY); Equity ratio: 27.3%.

• Segment growth driven by real estate (+JPY118.6 bn revenue), hotels/ryokans (+JPY11.7 bn), and Riso Kyoiku (+JPY17.8 bn).

• Extraordinary income included a JPY5.9 bn gain on sale of investment securities.

Outlook and guidance

• FY2025 targets: operating profit JPY178.0 bn (+8.9% YoY), ordinary profit JPY164.0 bn (+6.2% YoY), profit attributable to owners JPY108.0 bn (+5.5% YoY), annual dividend per share 57.0 yen (+3.0 yen YoY), EPS 141.81 yen.

• Aims for 17th consecutive year of record profit and dividend, with continued growth from consolidated subsidiaries and international investments.

• The new Medium-term Management Plan (2025–2027) targets high profit growth, stable core profit, and enhanced sustainability.