Sun Frontier Fudousan (8934) Q1 2027 earnings summary

Executive summary

• Q1 FY2027/3 net sales rose 9.6% YoY to ¥29,937m; operating profit increased 6.7% to ¥6,425m and ordinary profit rose 1.9% to ¥5,895m.

• Net profit attributable to owners of parent edged down 0.9% to ¥3,943m; results were described as a good start and generally on plan against full-year forecasts.

• Growth was led by Real Estate Revitalization, hotels and tourism, and Other Business; Real Estate Services declined slightly, while rental conference rooms grew.

Financial highlights

• Gross profit increased 7.1% YoY to ¥9,783m; SG&A rose 7.9% to ¥3,357m.

• Ordinary profit margin was 19.7%, down 1.5 percentage points YoY; full-year forecast progress was 23.0% for sales, 22.8% for operating profit and 22.7% for ordinary and net profit.

• Basic EPS was ¥68.96 versus ¥81.97 YoY; diluted EPS was ¥65.16 versus ¥72.32.

Outlook and guidance

• FY2027/3 forecasts remained unchanged: net sales ¥130,000m, operating profit ¥28,150m, ordinary profit ¥26,000m and parent-attributable profit ¥17,400m; planned dividend is ¥80 per share.

• FY2028/3 medium-term targets were raised to net sales ¥150bn and ordinary profit ¥30bn; target indicators include ordinary profit margin above 20%, equity ratio around 45% and ROE above 14%.

• Flow-type businesses reached 67.7% of full-year sales forecast and 60.0% of gross profit forecast, including contracted properties; stock-type Q1 sales and gross profit rose 21.2% and 8.5% YoY.

• Five hotels totaling 934 rooms were scheduled to open during FY2027/3; longer-term operations target is 10,000 rooms by 2033.