Nihon M&A Center (2127) Q1 2027 earnings summary

Executive summary

• Q1 FY2026/FY2027 sales rose 0.9% year-over-year to ¥9,104 million, with 188 transactions closed, down 11.3%, but higher M&A sales per transaction offset declines.

• Extraordinary gain of approximately ¥800 million from AtoG Capital contributed significantly to pre-tax profit.

• Leading indicators, such as new mandates and transactions under negotiation, reached record highs, supporting a positive outlook.

• Profit attributable to owners of parent rose 33.8% year-over-year to ¥2,027 million; comprehensive income increased 71.2%.

Financial highlights

• Sales: ¥9,104 million (+0.9% YoY); M&A sales per transaction: ¥46.3 million (+13.4% YoY).

• Ordinary profit: ¥2,252 million (-11.1% YoY); pre-tax profit: ¥3,156 million (+24.6% YoY, boosted by extraordinary gain).

• Net profit: ¥2,206 million (+46.5% YoY); profit attributable to parent: ¥2,027 million (+33.8% YoY).

• Interim fee received in Q1: ¥1,358 million (+17% YoY).

• Basic earnings per share for the quarter were ¥6.39, up from ¥4.78 in the prior year.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2027, is ¥52,800 million (+5.1% YoY); operating profit projected at ¥19,300 million (+2.9% YoY).

• Ordinary profit target for FY2032 set at ¥30 billion, with business domain expansion in fund, overseas, and PMI businesses.

• Confident in achieving first-half and full-year targets, supported by robust leading indicators and new mandates.

• Dividend per share forecast maintained at ¥29, with a payout ratio above 60%.