ZENKOKU HOSHO (7164) Q1 2027 earnings summary

Executive summary

• Operating revenue rose 2.5% year-over-year to ¥11,772 million, driven by steady guarantee exposure and higher investment income.

• Profit attributable to owners of parent increased 9.4% year-over-year to ¥6,562 million, supported by gains from equity-method affiliates and investment income.

• Ordinary profit increased 7.9% year-over-year to ¥9,335 million, driven by improved asset management yields and equity-method gains.

• Operating profit was stable at ¥7,724 million, up 0.1% year-over-year, with higher operating expenses.

• Comprehensive income grew 24.0% year-over-year to ¥7,808 million.

Financial highlights

• Operating revenue: ¥11,772 million (+2.5% YoY); Operating profit: ¥7,724 million (+0.1% YoY); Ordinary profit: ¥9,335 million (+7.9% YoY); Net income: ¥6,562 million (+9.4% YoY).

• EPS for the quarter was ¥49.39, up from ¥44.53 a year earlier.

• Comprehensive income reached ¥7,808 million, up from ¥6,296 million in the prior year.

• Total assets decreased 1.4% to ¥493,710 million; net assets declined 0.9% to ¥242,970 million.

• Non-operating income surged 58.6% year-over-year, mainly from investment and equity-method gains.

Outlook and guidance

• FY2027/3 forecast: operating revenue to rise 3.2% to ¥60,600 million, operating profit up 1.5% to ¥42,000 million, and profit attributable to owners of parent up 0.5% to ¥32,700 million.

• Dividend per share forecast at ¥123, maintaining a 50% payout ratio.

• ROE target set at 14%.

• No revisions to the previously announced forecast.