(7343) Broadmind - New Analyst Report 7/5

◆ Company Overview
・Broadmind mainly provides financial consulting services centered on life insurance for general income groups in their 20s to 40s with an annual household income of 3 million yen or more and less than 20 million yen.

◆ Financial results for the fiscal year ending March 24
・The financial results for the 24/3 fiscal year were net sales of 5,221 million yen (up 20.8% from the previous fiscal year) and operating profit of 722 million yen (up 16.7% from the same period). The company revised the company plan upward over two periods, 23/11 and 24/2, but it fell short of the level revised in February. However, to the point where the main life insurance agency business maintained an increase in sales on par with the previous fiscal year due to an increase in sales of savings insurance with high annualized insurance premiums, a drastic increase in sales in the real estate sales business contributed and maintained strong sales.

◆ Earnings forecast for the fiscal year ending 25/3
・Regarding financial results for the 25/3 fiscal year, Broadmind plans sales of 6,170 million yen (up 18.2% from the previous fiscal year) and operating profit of 820 million yen (up 13.5% from the same period).
・The Securities Research Center (hereafter, the Center) predicted sales of 6,159 million yen (up 18.0% from the previous fiscal year) and operating profit of 829 million yen (up 14.9% from the same period) for the 25/3 fiscal year, which is almost the same level as the company plan. We anticipated developments led by the life insurance agency business, where contributions from contracts taken over due to store transfers in the previous fiscal year were added to an increase in consultants and a favorable sales environment.

◆ Future highlights
・Our center predicted a 15.0% increase in sales compared to the previous fiscal year for the 26/3 fiscal year, a 9.0% increase in sales for the 27/3 fiscal year, and the operating profit margin on sales would rise to 15.8% for the 26/3 period and 16.7% for the 27/3 fiscal year.
・Broadmind has set up a medium-term management plan targeting sales of 8,000 million yen and operating profit of 1280 million yen for the 27/3 fiscal year. The essence of the medium-term management plan is to increase the number of consultants, and the policy of focusing on their recruitment and development remains unchanged. At our center, I would like to continue to pay attention to the progress of recruitment plans and personnel strength development.