JAFCO Group (8595) Q1 2026 earnings summary

Executive summary

• Capital gains reached ¥3.2 billion in 1Q FY March 2026, up from ¥2.5 billion year-over-year, driven by one IPO in Japan amid a sluggish IPO market and sales of listed shares.

• Net sales rose 40.9% year-over-year to ¥7,158 million, with operating income up 67.6% and profit attributable to shareholders up 84.8%.

• Shift in investment focus to domestic opportunities, with ongoing sale procedures for Asian and US subsidiaries to enhance capital efficiency.

• Sustainability initiatives advanced, including new Human Rights Policy, ESG Investment Policy, and becoming a PRI signatory.

• Shareholder returns prioritized with a forecast annual dividend of ¥133 per share and up to ¥5 billion in share buybacks, increasing treasury shares by ¥1,977 million.

Financial highlights

• Operating income for 1Q was ¥2,737 million, up 67.6% year-over-year; ordinary income at ¥2,986 million.

• Profit per share increased to ¥38.74 from ¥20.87 year-over-year; profit attributable to shareholders was ¥2.1 billion, with ROE at 6.9%.

• Gross profit improved to ¥4,050 million from ¥3,724 million year-over-year.

• Net assets per share at ¥2,549.52, down from ¥2,586.26 at the previous fiscal year-end.

• Management fees and SG&A expenses remain balanced, with admin expense coverage at 73%.

Outlook and guidance

• Focus on growing domestic fund size and external capital commitments to achieve target ROE of 15–20%.

• No quantitative financial forecasts provided due to earnings volatility; quarterly results will be disclosed in a timely manner.

• Annual dividend policy set at the greater of 6% DOE or 50% payout ratio; minimum annual dividend forecast at ¥133 per share.

• Share buybacks up to ¥5 billion planned for FY March 2026.