Sun Frontier Fudousan (8934) Q2 2026 earnings summary

Executive summary

• H1 FY2026/3 net sales rose 58.3% YoY to ¥58,232mn; operating profit increased 110.8% to ¥14,130mn and profit attributable to owners of parent rose 103.3% to ¥8,993mn.

• All segments exceeded initial H1 forecasts or progressed in line with plan; ordinary profit reached 60.5% of the FY forecast and set a first-half record.

• Long-Term Vision 2035 targets ¥300bn net sales and ¥60bn ordinary profit; the prior ¥100bn net-sales goal was achieved in the previous fiscal year.

Financial highlights

• H1 gross profit rose 74.3% to ¥20,078mn; ordinary profit rose 114.4% to ¥13,614mn and net income was ¥9,264mn.

• H1 forecast progress was 49.8% for net sales, 59.3% for operating profit, 60.5% for ordinary profit and 58.0% for profit attributable to owners of parent.

• Total assets were ¥237,768mn at September 2025, up ¥19,578mn from March; equity was ¥108,800mn and interest-bearing debt including lease liabilities was ¥106,254mn.

• Inventories rose to ¥146,468mn from ¥133,713mn, reflecting replanning-property purchases and hotel development.

Outlook and guidance

• FY2026/3 forecasts remain net sales ¥117,000mn, operating profit ¥23,840mn, ordinary profit ¥22,500mn and profit attributable to owners of parent ¥15,500mn.

• The FY2026/3 property-purchase target rose to ¥70bn from ¥55bn; ¥50bn had been purchased or contracted by H1, including ¥12.2bn contracted but unsettled.

• FY2028/3 targets are ¥135bn net sales and ¥27bn ordinary profit, with ROE above 14% and an equity ratio around 45%; the ordinary profit margin target is 20%.

• FY2026/3 annual dividend forecast is ¥76 per share, including the ¥38 interim dividend; stated payout ratio is 23.8%.