Hulic (3003) Q3 2024 earnings summary

Executive summary

• FY2024 annual guidance and year-end dividend plan were raised, with record-high profit items expected for the year.

• Operating revenue rose 13.0% year-over-year to ¥314,985 million for 3Q FY2024, driven by stable leasing income and steady real estate sales.

• Operating profit declined 2.3% year-over-year to ¥88,810 million, and profit attributable to owners of parent fell 6.9% to ¥54,596 million.

• Segment operations progressed as planned, with notable growth in Hotels/Ryokans and Others segments.

• Tender offer for Raysum underway, to be consolidated as a 100% subsidiary from FY2025.

Financial highlights

• FY2024 operating revenue forecast revised to JPY590.0 bn, up from JPY446.3 bn in FY2023.

• Operating profit forecast raised to JPY157.0 bn (up JPY4.0 bn from initial), ordinary profit to JPY150.0 bn (up JPY6.0 bn), and profit attributable to owners to JPY98.5 bn.

• 3Q FY2024 operating revenue rose 13% YoY to JPY314.9 bn; operating profit fell 2.3% YoY to JPY88.8 bn; profit attributable to owners declined 6.9% YoY to JPY54.6 bn.

• EPS for 3Q FY2024 was ¥71.72, down from ¥77.14 in 3Q FY2023.

• Annual dividend per share revised up to 54.00 yen (+4.00 yen YoY).

Outlook and guidance

• FY2024 profit targets expected to be achieved one year ahead of the medium-term plan.

• Full-year FY2024 forecast: Operating revenue ¥590,000 million (+32.1% YoY), Operating profit ¥157,000 million (+7.4% YoY), Ordinary profit ¥150,000 million (+9.1% YoY), Profit attributable to owners of parent ¥98,500 million (+4.0% YoY), EPS ¥129.38.

• New medium-term management plan to start from FY2025.

• Target for FY2029 ordinary profit set at JPY180.0 bn.