JAC Recruitment (2124) Stovo IR Conference summary

Business model and financial strengths

• Focus on mid- to high-income professionals and specialist roles; a consulting-led model serves employers and candidates through 240 specialized teams.

• 2025 revenue was ¥46.0bn: domestic recruitment 90.4%, domestic job advertising 8.7%, overseas business 0.9%; ranked No. 9 among global direct-hire firms in SIA’s 2025 ranking.

• Over the 10 years to 2025, gross profit CAGR was 14.6%, average pretax margin 24.9% and average ROE 32.0%.

• Payout ratio has exceeded 60% every year since 2018; cumulative payout ratio was 69.5% and total return ratio 80.1% over 2015–2025.

2026 first-quarter results and outlook

• Q1 2026 revenue rose 14.8% YoY to ¥13.539bn, gross profit 15.1% to ¥12.587bn and operating profit 28.7% to ¥4.389bn; EBITDA margin expanded 3.6 points to 33.4%.

• Q1 net profit attributable to owners rose 28.5% YoY to ¥3.003bn; domestic recruitment revenue reached a record, rising 14.8% to ¥12.332bn, with segment profit up 28.6% to ¥4.297bn.

• Domestic recruitment revenue increased across all industries except medical and healthcare; consulting grew 94.7% YoY and IT/communications 38.5%.

• FY2026 guidance is unchanged: revenue ¥53.2bn (+15.4%), operating profit ¥12.6bn (+7.8%) and net profit attributable to owners ¥8.6bn (+2.4%).

• Guidance assumes limited effects from Middle East developments and generative AI, with no major geopolitical or economic shock; hiring trends will be monitored amid risks including higher oil prices.

Capital returns

• The payout policy changed to a target of at least 65%, while maintaining stable dividend increases as earnings grow; interim dividends begin in 2026, moving to twice-yearly payments.

• FY2026 DPS is forecast at ¥38, including ¥19 interim and ¥19 final, up ¥2 YoY; forecast payout ratio is 70.6%. FY2025 DPS was ¥36 and payout ratio 68.5%.