Ichigo (2337) Q2 2027 earnings summary

Executive summary

• H1 business profit rose 2.6% to ¥15.5bn; net income fell 1.9% to ¥8.5bn, while cash net income increased 9.8% to ¥12.1bn.

• SRE, Ichigo Owners and AM growth offset weaker Hotel and Clean Energy earnings; acquisitions and existing-asset NOI growth helped cushion lower stock earnings.

• FY27/2 guidance remains unchanged, targeting record business profit of ¥34bn, net income of ¥18bn and a ¥15.5 per-share dividend.

Financial highlights

• H1 revenue fell 22.0% to ¥39.8bn, reflecting lower real estate sales after prior-year bulk residential sales; gross profit was ¥15.3bn versus ¥16.0bn.

• Operating profit declined 5.7% to ¥10.6bn; recurring profit fell 1.0% to ¥9.0bn and net income fell 1.9% to ¥8.5bn.

• Extraordinary gains rose to ¥4.9bn, including ¥3.0bn from affiliate-share sales and ¥1.9bn from SRE asset sales.

• Business profit increased 2.6% to ¥15.5bn; cash earnings rose 2% to ¥22.6bn, comprising ¥12.5bn stock earnings and ¥10.0bn flow earnings.

• Operating cash flow was -¥16.9bn, mainly reflecting a ¥22.9bn increase in real estate for sale; period-end cash was ¥39.2bn.

Outlook and guidance

• FY27/2 forecasts: business profit ¥34.0bn (+21.2%), net income ¥18.0bn (+8.2%), EPS ¥45.13 (+12.5%) and cash net income ¥24.0bn (+30.1%).

• Full-year cash EPS is forecast at ¥60.17 (+35.3%); record cash earnings of ¥47.8bn are expected, with flow earnings accelerating in H2.

• FY27 stock earnings are forecast at ¥25bn, above the prior-year record ¥24.3bn and the ¥23.8bn embedded forecast.

• H2 asset sales, including contracted transactions, support the outlook; the ¥400bn AUM target is aspirational and difficult to reach in H2.