Nihon M&A Center (2127) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026/FY2027 were ¥9,104 million (JPY 9.1 billion), up 0.9% year-over-year, with strong contributions from the fund business, notably a ¥800 million gain from AtoG Capital.

• Ordinary profit declined 11.1% year-over-year to ¥2,252 million, while pre-tax profit rose 24.6% to ¥3,156 million, driven by extraordinary gains.

• Profit attributable to owners of parent increased 33.8% year-over-year to ¥2,027 million; comprehensive income rose 71.2% to ¥2,301 million.

• Leading indicators, such as new sell-side mandates (+20.1% YoY) and transactions under negotiation, reached record highs, supporting a positive outlook.

• The company is advancing Vision 300 Next Genesis, targeting ¥30 billion ordinary profit by FY2032.

Financial highlights

• Sales: ¥9,104 million (+0.9% YoY); M&A sales per transaction: ¥46.3 million (+13.4% YoY).

• Ordinary profit: ¥2,252 million (-11.1% YoY); pre-tax profit: ¥3,156 million (+24.6% YoY); net profit: ¥2,206 million (+46.5% YoY).

• 188 transactions closed (-11.3% YoY); interim fees received up 17% YoY; large transactions (success fees >¥100mn) rose 35.7% YoY.

• Personnel costs for M&A consultants rose 6.5% YoY; IT and advertising expenses increased 22.5% and 62.5% YoY, respectively; SGA expenses up 9.5% YoY.

• Basic earnings per share for the quarter were ¥6.39, up from ¥4.78 in the prior year.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2027, is ¥52,800 million (+5.1% YoY); operating profit projected at ¥19,300 million (+2.9% YoY).

• Ordinary profit target for FY2032 set at ¥30 billion, with growth expected from domestic, fund, and overseas businesses.

• Strong pipeline and record-high transactions under negotiation (+17% YoY) expected to drive solid results in Q2 and Q3.

• Dividend per share forecast maintained at ¥29, with a payout ratio above 60%, including a special dividend of ¥4 per share.

• Confident in achieving first-half and full-year targets, with a focus on accelerating progress and maintaining momentum.