Kyoritsu Maintenance (9616) investor relations material

Executive summary

• Achieved record operating profit of 4.8 billion yen in Q1 FY3/27, up 8.2% year-over-year, with net sales rising 7.6% to 61.1 billion yen, marking the sixth consecutive year of increased sales and profits, driven by strong dormitory and hotel performance.

• Ordinary profit declined 3.9% year-over-year due to lower equity method income, while net profit attributable to owners of parent fell 15.5% year-over-year to 3.0 billion yen, reflecting a rebound from prior period tax benefits.

• Dormitory business growth was supported by 13 new properties and high occupancy, while hotel and resort segments saw revenue gains but faced cost pressures from renovations and inflation.

Financial highlights

• Net sales: 61.1 billion yen (+7.6% YoY); Operating income: 4.8 billion yen (+8.2% YoY); Ordinary income: 5.0 billion yen (-3.9% YoY); Net income: 3.0 billion yen (-15.5% YoY, but +14.5% YoY excluding tax effects).

• EPS: 33.4 yen (-27.4% YoY), but 38.9 yen (-15.5% YoY) excluding new share issuance impact; gross profit increased to 15.2 billion yen from 14.0 billion yen YoY.

• Cash flow: 5.4 billion yen (-4.3% YoY); Capital investment: 12.1 billion yen (+87.8% YoY); total assets grew to 320.8 billion yen.

• Equity ratio stood at 45.7%, slightly down from 46.0% at the previous fiscal year-end.

Outlook and guidance

• FY3/27 forecast: Net sales 277.0 billion yen (+0.6% YoY), operating income 26.0 billion yen (+4.6% YoY), ordinary income 26.0 billion yen (-0.8% YoY), net income 18.0 billion yen (-3.8% YoY); annual dividend forecast maintained at 46 yen per share (23.2% payout ratio).

• Organic operating profit growth forecast at 12.7% YoY, targeting double-digit growth in hotel segment through dynamic pricing and new openings.