Mitsubishi HC Capital (8593) Q1 2025 earnings summary

Executive summary

• Net income for 1Q FYE3/2025 rose 11.6% year-over-year to ¥39.1 billion, driven by strong Aviation segment performance and a one-time gain from the change in JSA's fiscal period, despite the absence of large gains in Real Estate seen last year.

• Gross profit increased 20.0% year-over-year to ¥113.6 billion, with recurring income up 30.4% to ¥49.2 billion.

• Revenues increased 11.1% year-over-year to ¥529.9 billion, and operating income rose 34.9% to ¥48.9 billion.

• Comprehensive income surged 51.9% year-over-year to ¥146.1 billion, reflecting significant gains in foreign currency translation and hedges.

• Major developments included investments in renewable energy, new business launches, and progress on medium-term management plan targets.

Financial highlights

• Operating income for the quarter was ¥48.9 billion, up 34.9% year-over-year.

• Recurring income reached ¥49.2 billion, a 30.4% increase from the prior year.

• Earnings per share rose to ¥27.32 from ¥24.44 year-over-year.

• Total assets reached ¥11,763.2 billion, up 5.5% from the previous year-end.

• Shareholders’ equity rose to ¥1,822.1 billion, with an equity ratio of 15.3%.

Outlook and guidance

• Full-year net income forecast remains at ¥135.0 billion, with 1Q progress at 29.0% (23.3% excluding JSA fiscal period effect); no change to full-year guidance.

• ROA and ROE targets for FYE3/2025 are 1.2% and 8.0%, respectively.

• Dividend per share forecasted at ¥40, up ¥3 year-over-year, with a payout ratio target of 40% or more.

• Medium-term plan targets net income of ¥160.0 billion and ROE of ~10% by FYE3/2026.