Kyoritsu Maintenance (9616) Q2 2025 earnings summary

Executive summary

• Achieved record-high first half profit for FY ending March 2025, with net sales up 12.9% year-on-year to ¥111.3 billion and net income up 64.2% to ¥7.7 billion, driven by strong inbound tourism and robust hotel and dormitory performance.

• Both hotel and dormitory segments contributed to growth, with notable gains from new properties, affiliated company earnings, and record inbound tourism.

Financial highlights

• Operating income reached ¥10.6 billion, up 26.5% year-on-year; ordinary income was ¥11.2 billion, up 36.6%.

• EPS for H1 was ¥99.00, up from ¥60.30 year-on-year, reflecting a two-for-one stock split in April 2024.

• Net income grew 64.2% year-on-year to ¥7.7 billion, partly due to the absence of last year's extraordinary loss from business withdrawal in Thailand.

• Cash flow improved 43.3% year-on-year to ¥11.3 billion; capital investment more than doubled to ¥19.8 billion.

Outlook and guidance

• Full-year forecast maintained, expecting record-high operating income of ¥18.5 billion and net sales of ¥226 billion, with recovery anticipated in Q3 based on strong reservation trends.

• Dividends planned to increase by 30.6% year-on-year to ¥32 per share (post-split basis), with enhanced shareholder benefits.