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Real Estate Worth $165 Billion Puts Japan Companies in Spotlight
Wada Kousan Research Memo (9): Aiming to achieve a dividend payout ratio of 30% in the medium-term management plan.
■Shareholder return strategy Wadakoso Co., Ltd. <8931> is implementing dividends as a shareholder return strategy. The basic policy of dividends is positioned as an important management goal to maintain and expand the long-term interests of shareholders, considering returning to shareholders as the first priority, while aiming to improve profitability through business area expansion and efficient management, and strengthen governance. Efforts are being made to continue stable dividends. Regarding dividends per share, for the fiscal year ending February 2024, interim dividends are 26.0 yen, year-end dividends are 34.0 yen (including a commemorative dividend of 2.0 yen), totaling 60.
Wada Koso Research Memo (6): In the February 2025 period, with the increase in profits at each stage, the profit margin is expected to rise.
As of February 2025, the business environment is transitioning from a prolonged deflationary macro environment to an inflationary trend, driven by the depreciation of the yen and improvements in price levels and income situations. With the winding down of the COVID-19 pandemic, there has also been a recovery in service consumption and inbound demand, leading to favorable corporate performance. However, concerns remain regarding future interest rate trends, especially with the Bank of Japan easing negative interest rates.
Wadanoko Company Research Memo (5): The increase in inventory assets contributes to performance in the next 2-3 periods.
■ Wada Industries <8931> Performance Trends 3. Financial Situation and Management Indicators As of the intermediate period ending February 2025, the total assets increased by 4,205 million yen from the previous period to 105,433 million yen. Current assets increased by 3,178 million yen to 75,559 million yen. The main factors were an increase in inventory assets (real estate for sale) by 4,558 million yen due to the acquisition of business land and construction progress in the next period and a decrease in cash and deposits by 1,470 million yen. Real estate for sale is...
Wada Koso Research Memo (4): In the interim period of February 2025, there was a decrease in revenue and profit compared to the same period of the previous year, but significantly exceeded the initial financial estimates.
■ The performance trend of Wada Kousan <8931> 1. Performance overview for the interim period ending February 2025 In the interim period ending February 2025, the Japanese economy shows signs of recovery in economic activities due to increased inbound demand and growth in service consumption due to improved income conditions. However, uncertainty continues due to the instability of the international situation, including soaring resource prices and rising prices stemming from rapid fluctuations in exchange rates. In the real estate industry, the continuation of government support measures for residence acquisition and housing loan gold rates remains crucial.
Wada Koshin Research Memo (3): Condominium sales are the cornerstone of the business.
■Business Overview Wata Kousan <8931> discloses its business operations in four categories: condominium sales, detached housing sales, other real estate sales, and real estate rental income. In the interim period of the fiscal year ending February 2025, condominium sales account for 73.5% of revenue and 64.5% of gross profit, making it the company's main business. Additionally, detached housing sales represent 4.5% of revenue and 3.3% of gross profit, while other real estate sales constitute 13.5% of revenue and 16.8% of gross profit, with real estate rental income.