Sun Frontier Fudousan (8934) Q2 2027 earnings summary

Executive summary

• H1 FY2027/3 net sales, operating profit, ordinary profit and parent-attributable profit all reached first-half records; ordinary profit achieved 59.5% of its full-year forecast.

• Strong property sales, rental conference room and hotel operations, and recent acquisitions supported results.

Financial highlights

• Net sales were ¥78,234M, up 34.3% YoY; gross profit was ¥24,127M, up 20.2%.

• Operating profit was ¥16,641M, up 17.8%; ordinary profit was ¥15,457M, up 13.5%; parent-attributable profit was ¥10,346M, up 15.1%.

• SG&A rose 25.9% to ¥7,485M; ordinary profit margin was 19.8%, down 3.6 percentage points YoY.

Outlook and guidance

• FY2027/3 forecasts were unchanged: net sales ¥130,000M, operating profit ¥28,150M, ordinary profit ¥26,000M, parent-attributable profit ¥17,400M and EPS ¥304.20.

• H1 progress was 60.2% for net sales, 59.1% for operating profit and 59.5% for ordinary and parent-attributable profit; flow-type businesses had covered 83.3% of forecast sales and 83.8% of forecast gross profit by Nov. 9.

• FY2028/3 medium-term targets were raised to net sales ¥150B and ordinary profit ¥30B, with ROE above 14%; the FY2026/3–FY2028/3 investment plan rose to ¥350B.

• Annual dividend forecast remained ¥80/share, including the ¥40/share interim dividend; stock-type revenue is targeted to reach 40% of total revenue in the plan’s final year.