■Future Outlook LeTech <3497> expects an increase in sales and ordinary income of more than 20%, with sales of 2.14 billion yen (+33.8% YoY), operating income of 150 million yen (+7.7% YoY), ordinary income of 100 million yen (+21.7% YoY), and net income of 1.03 billion yen (-11.4% YoY) for the July 2024 term, and has maintained its initial forecast (announced in September 2023).
1. Performance Outlook for March 2025
Yamada Consulting Group's performance forecast for the fiscal year ending March 2025 expects revenue to decrease by 4.8% compared to the previous year, reaching 210,000,000 yen, operating profit to increase by 1.8% to 37,300,000 yen, recurring profit to increase by 0.1% to 37,300,000 yen, and net income attributable to the parent company's shareholders to increase by 0.2% to 28,700,000 yen. Although existing employees' salaries are scheduled to increase by an average of 9.7% due to salary revisions in June 2024, the projected operating profit is at an all-time high.
(1) Consulting business: For the fiscal year ending March 2025, the performance forecast for the consulting business is expected to have revenue of 18.87 billion yen, an increase of 8.6% compared to the previous year. Operating profit is expected to decrease by 6.3% to 2.77 billion yen.
The 'Management Consulting Business' has solid demand due to the decline in the working-age population and the progress of DX (digital transformation), and supports the formulation of medium-term management plans, human capital and sustainability management of listed companies. In addition, since the fiscal year ending March 2024, the business also responds to the support of the business revitalization and core business improvement of companies suffering from excessive debt due to the expansion of the novel coronavirus infection in the 'Business Revitalization Consulting Business' included in the same business. In the 'M&A Advisory Business', we have acquired Pinnacle, which has overwhelming expertise, specialist skills, and recognition in domestic M&A and cross-border M&A business, and Takenaka Partners, a pioneer in M&A and strategic partnership support for Japanese companies in the US, with the aim of strengthening the network of domestic companies to maintain and expand their international competitiveness, given the increased demand for delisting and carve-out cases, as well as business-revitalizing M&A. In the 'Succession Consulting Business', we respond to consultations on sustainable growth, real estate utilization in Japan and abroad, and overseas expansion while solving problems related to business succession with management. With an increasing number of companies considering M&A as an option for business succession, we are also focusing on developing personnel with specialist knowledge to provide high-quality support. In the 'Real Estate Consulting Business', we aim to increase the number of high-priced properties and selectively accept high-priced cases for low-priced properties, as the market becomes increasingly polarized.
(2) Investment business: The performance forecast for the investment business for the fiscal year ending March 2025 expects revenue to decrease by 53.7% to 2,230 million yen compared to the previous year, and operating profit to increase by 35.6% to 960 million yen. We expect an increase in profit despite the decrease in revenue due to the sale of fund investment stocks with high investment yields (IRR). The company's investment business consists of two pillars: 'Unlisted Stock Investment Business' and 'Real Estate Investment Business.' In the 'Unlisted Stock Investment Business,' we support the sustainable development of client companies through rebuilding capital structure and funding. In this business, we explore new cases closely with management, and provide comprehensive support using regular monitoring and management consulting functions for existing investment cases to improve corporate value. On the other hand, the 'Real Estate Investment Business' started in full swing in 2023, focusing on low-liquidity real estate such as shared ownership and solving funding issues. There has been a steady increase in new investment destinations introduced by financial institutions and real estate brokerage companies, and we are strengthening our information dissemination activities to increase recognition. We invest capital in carefully selected investment destinations while also working to enhance personnel involved in sales.
(1) Consulting business
For the fiscal year ending March 2025, the performance forecast for the consulting business is expected to have revenue of 18.87 billion yen, an increase of 8.6% compared to the previous year. Operating profit is expected to decrease by 6.3% to 2.77 billion yen.
The 'Management Consulting Business' has solid demand due to the decline in the working-age population and the progress of DX (digital transformation), and supports the formulation of medium-term management plans, human capital and sustainability management of listed companies. In addition, since the fiscal year ending March 2024, the business also responds to the support of the business revitalization and core business improvement of companies suffering from excessive debt due to the expansion of the novel coronavirus infection in the 'Business Revitalization Consulting Business' included in the same business. In the 'M&A Advisory Business', we have acquired Pinnacle, which has overwhelming expertise, specialist skills, and recognition in domestic M&A and cross-border M&A business, and Takenaka Partners, a pioneer in M&A and strategic partnership support for Japanese companies in the US, with the aim of strengthening the network of domestic companies to maintain and expand their international competitiveness, given the increased demand for delisting and carve-out cases, as well as business-revitalizing M&A. In the 'Succession Consulting Business', we respond to consultations on sustainable growth, real estate utilization in Japan and abroad, and overseas expansion while solving problems related to business succession with management. With an increasing number of companies considering M&A as an option for business succession, we are also focusing on developing personnel with specialist knowledge to provide high-quality support. In the 'Real Estate Consulting Business', we aim to increase the number of high-priced properties and selectively accept high-priced cases for low-priced properties, as the market becomes increasingly polarized. The 'Investment Business' expects revenue of 2,230 million yen in the fiscal year ending March 2025, a decrease of 53.7% compared to the previous year, and operating profit to increase by 35.6% to 960 million yen. We expect an increase in profit despite the decrease in revenue due to the sale of fund investment stocks with high investment yields (IRR). The company's investment business consists of two pillars: 'Unlisted Stock Investment Business' and 'Real Estate Investment Business.' In the 'Unlisted Stock Investment Business,' we support the sustainable development of client companies through rebuilding capital structure and funding. In this business, we explore new cases closely with management, and provide comprehensive support using regular monitoring and management consulting functions for existing investment cases to improve corporate value. On the other hand, the 'Real Estate Investment Business' started in full swing in 2023, focusing on low-liquidity real estate such as shared ownership and solving funding issues. There has been a steady increase in new investment destinations introduced by financial institutions and real estate brokerage companies, and we are strengthening our information dissemination activities to increase recognition. We invest capital in carefully selected investment destinations while also working to enhance personnel involved in sales.
(Reported by FISCO guest analyst Hiroshi Nakayama)