Logos Holdings <205A>, which operates a custom order residence business utilizing digital marketing customer acquisition and efficient operations through DX, announced its first quarter (1Q) earnings for the fiscal year ending in May 2025 on October 15th. Sales decreased by 38.0% year-on-year to 2890 million yen, with an operating loss of 776 million yen (compared to a loss of 489 million yen in the same period last year). Despite a decrease in the number of units delivered this quarter due to a rebound concentrated in the fourth quarter of the fiscal year before going public in May 2024, the number and value of orders are progressing as planned, and there is no change in the full-year outlook.

For the full fiscal year ending in May 2025, sales are expected to increase by 17.2% to 37164 million yen, and operating profit is expected to increase by 51.6% to 2108 million yen, anticipating increased revenue and profit. With the addition of new stores and strengthening of sales personnel, the company plans for a double-digit increase in sales.

Since the earnings report, the stock price has significantly declined. The P/E ratio is 6.7 times, and the dividend yield is 5.93%. If the full-year forecast is met, the gap between stock price and performance is expected to be significant.

The company group consists of the company itself and 5 consolidated subsidiaries, with about 60% of consolidated sales coming from Logos Home and about 30% from Toyosaka Construction. Logos Home and Toyosaka Construction jointly operate Hokkaido Clasiam with actual experience facilities like temperature experience rooms and earthquake experience rooms, as well as a lodging experience model house with 6 buildings. The company group expands businesses related to housing and real estate in the Hokkaido, Tohoku, and North Kanto areas, ranking No. 1 in housing construction applications in Sapporo City in 2023. The main housing sales business has three main features: product development capability (developing energy-efficient and CO2-reducing homes), digital marketing (centered on web strategies without participating in housing comprehensive exhibitions), and efficient operations through DX. The company's MCB construction method (method of manufacturing in a factory, transporting by truck, and building on-site) is currently pending patent approval.

In the future, the company aims to expand its area through an increase in the number of locations, promote operational efficiency, improve profitability through price transfer, and strengthen its revenue base by creating innovative business models utilizing digital technologies. In the second half of the fiscal year ending in May 2025, the company plans to open multiple stores in the Kanto, Tokai, and Hokuriku regions, aiming for 50 locations. Furthermore, with the establishment of the Rampart Semiconductor Factory, land development has begun in Chitose City, Hokkaido, with completion scheduled for the summer of 2025 as a large-scale residential area. With successful recruitment of personnel and expansion of sales areas, sustained double-digit growth in the medium to long term is on the horizon.