Kyoritsu Maintenance (9616) investor relations material

Executive summary

• Net sales rose 20.2% year-over-year to ¥275.2 billion, with operating income up 21.2% to ¥24.8 billion and net income up 28.5% to ¥18.7 billion, reaching record highs across all major profit lines.

• Growth was driven by strong performance in Dormitory and Hotel businesses, supported by new facility openings and robust inbound tourism.

• EPS increased 18.9% to ¥221.8, or 28.4% to ¥239.6 excluding new share issuance from convertible bonds.

Financial highlights

• Ordinary income grew 22.3% year-over-year to ¥26.2 billion.

• Gross profit improved to ¥64.9 billion from ¥55.9 billion year-over-year.

• Cash flow (net income + depreciation) increased 24.5% to ¥27.7 billion.

• Total assets increased to ¥316.7 billion, up ¥15.2 billion from the previous year.

• Dividend per share increased to ¥46, with a payout ratio of 20.7%.

Outlook and guidance

• FY 3/27 forecast: net sales to rise 0.6% to ¥277.0 billion, operating income up 4.6% to ¥26.0 billion, and net income to decrease 3.8% to ¥18.0 billion.

• EPS projected to decline 10.8% to ¥198.0, or 3.8% to ¥213.4 on a comparable share basis.

• The company plans to maintain the annual dividend at ¥46 per share, targeting a payout ratio of 23.2%.

• Strategic focus includes enhancing membership programs, digital transformation, and sustainability initiatives.

• Capital investment expected to increase 28.0% to ¥54.0 billion.