Nihon House Holdings Revises H2 FY2027 Forecast on Hotel Divestiture
Nihon House Holdings Co., Ltd. (TSE:1873) has revised its earnings guidance for the second half of fiscal 2027 ending April, citing lower housing demand and gains from strategic hotel asset sales.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 15.4bn | JPY 14.9bn | -3.1% |
| Operating Profit | JPY 500M | JPY 320M | -36.0% |
| Ordinary Income | JPY 340M | JPY 630M | +85.3% |
| Net Profit | JPY 160M | JPY 2.90bn | +1712.5% |
| EPS | JPY 4.00/share | JPY 72.50/share | +1712.5% |
The company attributed revenue declines to prolonged Middle East tensions dampening housing orders and the impact of hotel portfolio optimization. Operating profit fell 36.0% to JPY 320M as housing sales contracted. However, ordinary income (keijo rieki), a Japan-specific metric capturing non-operating financial items, surged 85.3% to JPY 630M. The company is divesting four underperforming hotel properties, generating approximately JPY 4.5bn in fixed asset gains while recording JPY 800M in disposal losses, resulting in net special gains that drove net profit to JPY 2.90bn from JPY 160M.
For the full fiscal year, the company lowered revenue guidance by 6.9% to JPY 32.5bn and operating profit by 27.7% to JPY 1.91bn, reflecting sustained housing market headwinds. Full-year net profit, however, is projected at JPY 3.61bn, up 163.5% from prior guidance, buoyed by the same hotel divestiture gains. Management intends to redeploy sale proceeds into housing business growth investments and balance-sheet strengthening. While core operating performance deteriorates, the strategic asset restructuring underscores management’s pivot toward higher-margin residential operations and improved financial stability.
Source: Original filing (TDnet) | 日本語版
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