May 15, 2017
DAIKYO INCORPORATED
Summary of Consolidated Financial Results For the Year Ended March 31, 2017DAIKYO INCORPORATED announces financial results for the year ended March 31, 2017. For more details, please refer to Full Year Financial Results and Fact Sheets.
■Consolidated Statements of Operations (Millions of yen)
2016 2017 Change Forecast
Year ended March 31
334,853 | 325,360 | △ 9,492 | 340,000 |
18,318 | 20,523 | 2,204 | 20,000 |
17,093 | 19,967 | 2,874 | 19,000 |
12,628 | 14,044 | 1,416 | 14,000 |
Net sales Operating income Ordinary income
Profit attributable to
owners of parent
2017
Consolidated Financial Results SummaryDuring the fiscal year under review, net sales decreased ¥9,492 million, or 2.8% year on year, to ¥325,360 million, operating income increased ¥2,204 million, or 12.0%, to ¥20,523 million, and ordinary income increased ¥2,874 million, or 16.8%, to ¥19,967 million. Profit attributable to owners of parent increased ¥1,416 million, or 11.2%, to
¥14,044 million.
Sales in the real estate development business declined due to fewer plans for completed condominiums than in the previous fiscal year. However, this was offset by an increase in income due to a higher condominium gross profit margin over the previous fiscal year, and in addition, higher income and profit in both the real estate management segment and real estate brokerage segment.
■Results by Segment
Real Estate ManagementNet sales | Operating income | (Millions of yen) | ||||
Year ended | 2016 | 2017 | Year-on-year | 2016 | 2017 | Year-on-year |
March 31
162,821 163,339 518 9,664 10,684 1,020 Segment SummaryIn the real estate management segment, net sales increased ¥986 million year on year, due to gains in the number of management contracts for buildings and other facilities.
Although sales of planned repair and maintenance work and small-scale contract work on condominiums increased, in work related to buildings and facilities, sales fell for work related to solar power generation plants. As a result, contract work sales decreased by ¥690 million year on year.
As a result of these factors, net sales rose by ¥518 million and operating income increased by ¥1,020 million thanks to the success of cost-saving initiatives in each business.
The number of condominium units managed totaled 531,957 units (530,095 units at the end of the previous fiscal
year).
The volume of contract work orders received as of the end of the fiscal year was ¥28,339 million (compared with ¥
Real Estate Brokerage | ||||||
Net sales | Operating income | (Millions of yen) | ||||
Year ended March 31 | 2016 | 2017 | Year-on-year | 2016 | 2017 | Year-on-year |
54,904 | 62,249 | 7,345 | 3,233 | 3,449 | 216 | |
Segment Summary | ||||||
real estate brokerage income increased ¥358 million over the previous fiscal year. the previous fiscal year). | ||||||
Real Estate Development and Sales | ||||||
Net sales | Operating income | (Millions of yen) | ||||
Year ended March 31 | 2016 | 2017 | Year-on-year | 2016 | 2017 | Year-on-year |
122,211 | 104,684 | △ 17,526 | 8,667 | 8,987 | 320 | |
Segment Summary | ||||||
・The number of completed condominiums fell from 44 (2,830 units) in the previous fiscal year to 38 (2,601 units) in this fiscal year due to a rigorous property acquisition process in three metropolitan areas. As a result, the number of condominiums sold decreased by 415 over the previous fiscal year to 2,565. Net sales fell ¥14,105 million to ¥ 93,969 million. ・The condominium gross profit margin rose 2.8 pp year on year to 25.7% as a result of appropriate profit levels being made the top priority in sales activities, in parallel with monitoring market trends. ・As a result, net sales decreased ¥17,526 million year on year, and operating income increased ¥320 million. ・The number of completed new condominiums in inventory fell from 450 units as of the end of the previous fiscal year to 294 units at the end of the fiscal year under review. ・In condominium sales, the number of contracted units decreased by 306 units year on year to 2,169 units. Progress made in contracts as of the end of the fiscal year amounts to 45% of the full-year forecast of condominium sales for the fiscal year ending March 31, 2018. | ||||||
■State of Dividends | ||||||
The Company has decided to pay a year-end dividend of ¥6 per share, as announced on October 26, 2016. |
■Outlook for the Fiscal Year Ending March 31, 2018
(Millions of yen)
Year ended March 31
2017 Forecast 2018 Change Percentage
change
Net sales | 325,360 | 340,000 | 14,640 | 4.5% |
Operating income | 20,523 | 19,000 | △ 1,523 | △ 7.4% |
Ordinary income | 19,967 | 18,000 | △ 1,967 | △ 9.9% |
Net income attributable to parent company | 14,044 | 12,000 | △ 2,044 | △14.6% |
shareholders
Performance Forecast by Segment (Millions of yen)
Year ended March 31 | 2017 | Forecast 2018 | Change | |||
Net sales | Operating income | Net sales | Operating income | Net sales | Operating income | |
Real Estate Development and Sales | 163,339 | 10,684 | 177,000 | 11,300 | 13,660 | 615 |
Real Estate Management | 62,249 | 3,449 | 65,000 | 3,900 | 2,750 | 450 |
Real Estate Brokerage | 104,684 | 8,987 | 102,000 | 7,100 | △ 2,684 | △ 1,887 |
Adjustments (Eliminations or Corporate Assets/Expenses) | △ 4,913 | △ 2,598 | △ 4,000 | △ 3,300 | 913 | △ 701 |
Total | 325,360 | 20,523 | 340,000 | 19,000 | 14,639 | △ 1,523 |
・In the fiscal year ending in March 2018, we expect gains in sales and income in both the real estate management segment and the real estate brokerage segment, but forecast lower sales and income primarily due to a reduction in the number of completed condominiums in the real estate development and sales segment. As a result, we expect consolidated net sales to increase ¥14,639 million to ¥340,000 million and operating income to decrease ¥1,523 million to ¥19,000 million.
・We are making steady progress in acquiring sites, primarily in key outlying cities, and expect the number of
completed new condominiums at the end of the fiscal year ending in March 2019 to total about 2,650, exceeding levels in the fiscal years ended in March 2017 and ending in March 2018(2,256 units as planned).
・Based on our basic policies for shareholder returns-stability, continuity and enhancing sustainable returns-we have taken into account earnings forecasts as well as the balance between dividends and investments for profit growth and plan to pay dividends of ¥60 per share. (*1)
(*1) At the meeting of the Board of Directors held on May 15, 2017, a decision was reached to submit proposals to the 93rd Ordinary General Meeting of Shareholders of the Company, to be held on June 22, 2017, with respect to share consolidation. Shares will be consolidated at the ratio of 10 shares to 1 share and this change will be subject to approval at the 93rd Ordinary General Meeting of Shareholders, and will take effect on October 1, 2017. As a result, the dividends per share in the next fiscal year, taking into account this share consolidation, is noted here. We forecast dividends of ¥6 per share in the next fiscal year when not taking into account the share consolidation.
Reference: Percentage of completed new condominium units in each quarter in fiscal 2017 and fiscal 2018 (*2)
Percentage of completed condominium units in fiscal 2017
Percentage of completed condominium units in fiscal 2018 (forecast)
42%
57%
70%
60%
50%
40%
22%
17%
12% 8%
24%
18%
30%
20%
10%
0%
1Q 2Q 3Q 4Q
(*2) The percentage of completed new condominium units is calculated based on the first day of residence.
Daikyo Inc. published this content on 15 May 2017 and is solely responsible for the information contained herein.
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