Japan Investment Adviser (7172) Q1 2025 earnings summary

Executive summary

• Operating Lease Business drove strong Q1 FY2025 results, with record-high equity sales and robust deal structuring, supporting high progress rates toward annual targets.

• Net sales for Q1 FY2025 rose 22.3% year-over-year to ¥11,024 million, with operating profit up 45.0% to ¥6,977 million and ordinary profit up 4.6% to ¥5,931 million.

• Profit attributable to owners of parent was ¥4,030 million, a slight decrease of 1.3% year-over-year.

• Non-operating exchange loss of ¥448 million due to yen appreciation impacted Q1, but overall business performance remains resilient.

• Real Estate and Renewable Energy businesses are being expanded, though real estate fractional sales lag behind annual targets.

Financial highlights

• Gross profit increased from ¥6,774 million to ¥9,063 million year-over-year.

• Net profit per share for Q1 FY2025 was ¥66.59.

• Shareholders' equity ratio improved to 27.9% from 27.3% at the end of the previous fiscal year.

• Total assets grew to ¥246,626 million, up ¥1,720 million from December 2024.

• Gross profit margin improved to 82.2% from 75.1% in Q1 FY2024.

Outlook and guidance

• FY2025 forecasts remain unchanged despite currency volatility, with net sales projected at ¥36,870 million and net income at ¥10,500 million.

• Mid-term plan targets net income of ¥25 billion by FY2026.

• Dividend payout ratio policy revised to 50% or higher, with stable and performance-linked dividends planned.

• Dividend forecast for FY2025: ¥87.0 per share (full year).

• No revisions to previously announced forecasts; actual results may differ due to uncertainties.