JAFCO Group (8595) Q4 2025 earnings summary

Executive summary

• Net sales rose 21.4% year-over-year to ¥29.7 billion, with net income up 28% to ¥9.6 billion and ordinary income at ¥13.2 billion.

• Strategic shift to focus on domestic investment, ceasing new investments in US and Asia funds, and transferring overseas subsidiaries.

• Eight IPOs in Japan, including two buyouts, drove significant capital gains; notable exits include Astroscale Holdings and Timee, each with IPO market caps over ¥100 billion.

• Annual dividend of ¥88 per share (50% payout), plus up to ¥5 billion in share buybacks, resulting in a 102% total return ratio.

• New dividend policy from FY March 2026: greater of 6% DOE or 50% payout ratio, with projected minimum dividend of ¥133 per share.

Financial highlights

• Capital gains reached ¥12.7 billion, up 60% year-over-year; operating income increased 53% to ¥12.5 billion.

• ROE improved to 6.9% from 5.6% the previous year.

• Net assets rose to ¥141.1 billion, with net assets per share at ¥2,586.

• Cash and cash equivalents at period-end were ¥72.5 billion, up from ¥67.6 billion.

• Operating cash flow turned positive at ¥10.4 billion, compared to negative ¥9.6 billion the prior year.

Outlook and guidance

• Medium-term targets (2028–2030): ordinary income ¥20 billion, net income ¥14 billion, ROE 10–15%.

• Long-term targets (2031–2033): ordinary income ¥26 billion, net income ¥18 billion, ROE 15–20%.

• Only external capital commitments in new domestic funds will drive management fee growth from FY March 2026.

• No consolidated performance forecasts disclosed due to earnings volatility tied to market conditions.

• Dividend policy revised: for FY2026, annual dividends will be the greater of 6% DOE or a 50% payout ratio, with interim dividends based on 3% DOE.