Hulic (3003) Q1 2025 earnings summary

Executive summary

• Operating revenue for 1Q FY2025 rose 45.5% YoY to JPY156.6 bn, driven by robust real estate, hotel/ryokan, and stable leasing performance.

• Operating profit increased 34.0% YoY to JPY31.8 bn, ordinary profit up 31.8% to JPY28.0 bn, and net income grew 8.3% to JPY17.1 bn.

• Over JPY140.0 bn invested in 1Q, with an additional JPY200.0 bn pipeline for 2Q onward; refinancing of JPY120.0 bn hybrid bond arranged.

• Hotels/ryokans and child education businesses showed strong growth, with new openings and significant media coverage.

• Segment operations progressed as planned, with significant growth in the "Others" segment and no direct impact expected from U.S. tariffs.

Financial highlights

• Operating revenue: JPY156.6 bn (+45.5% YoY); operating profit: JPY31.8 bn (+34.0% YoY); ordinary profit: JPY28.0 bn (+31.8% YoY); net income: JPY17.1 bn (+8.3% YoY).

• EPS for 1Q FY2025 was JPY22.57, up from JPY20.84 in 1Q FY2024.

• Real estate business contributed JPY38.8 bn to revenue growth; hotels/ryokans added JPY1.6 bn.

• SGA expenses increased by JPY7.2 bn, mainly due to business expansion.

• Comprehensive income decreased to JPY19.6 bn from JPY26.9 bn in the prior year.

Outlook and guidance

• 1Q operating and ordinary profits progressed 17% toward annual targets; net income progressed 15%, in line with plan.

• FY2025 targets: operating revenue JPY178.0 bn, ordinary profit JPY164.0 bn, net income JPY108.0 bn, annual dividend JPY57.0 (payout ratio 40.1%).

• Net investments planned at JPY930.0 bn over three years (2025–2027) for sustained profit growth.

• No changes to previously announced forecasts as 1Q performance proceeded according to plan.