KATITAS (8919) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥89,987m, up 24.3% YoY; operating profit rose 27.1% to ¥11,454m and net income rose 27.1% to ¥7,608m.

• Homes sold increased 18.0% to 4,795 and purchases rose 16.4% to 5,515, supporting growth and higher inventory.

Financial highlights

• H1 gross profit was ¥20,915m, up 21.4%; gross margin was 23.2%, down 0.6pt YoY, while gross profit per property sold rose 2.9% to ¥4.36m.

• Ordinary profit reached ¥11,140m, up 26.8%; basic EPS was ¥97.21 versus ¥76.56 YoY.

• Q2 net sales increased 23.2% YoY to ¥46,025m; operating profit rose 25.9% to ¥5,891m and margin improved 0.3pt to 12.8%.

• SG&A rose 15.2% YoY, reflecting personnel and recruitment investment; a ¥36m extraordinary loss was recorded for the Kumamoto earthquake.

Outlook and guidance

• FY2027 guidance is unchanged: net sales ¥177,400m, operating profit ¥21,000m, ordinary profit ¥20,000m and net income ¥14,000m.

• H1 gross profit, operating profit, ordinary profit and net income reached 103.5%, 107.1%, 106.1% and 104.2% of H1 plans; full-year operating profit is expected to exceed plan.

• FY2027 basic EPS forecast is ¥178.93; annual dividends are forecast at ¥90 per share, split ¥45 interim and ¥45 year-end.

• The tender offer's impact on consolidated forecasts remains under review; any forecast revision will be announced promptly.