Investment Bridge Announces Investment Opinion: Bridge Report on Leopalace21
Issued: Highlights Focus Upon Measures to Improve Profitability and Full
Year Earnings Estimates
NOTE TO EDITORS: The following is an investment opinion issued by Investment
TOKYO -- January 7, 2013
Investment Bridge, one of Japan's leading independent IR services companies,
has released a "Bridge Report" on Leopalace21 Corporation (TOKYO:8848)
reviewing its first half fiscal year March 2013 earnings results and its
forecasts for full fiscal year March 2013.
*During the first half, Leopalace21's gross income rose by 18.0% despite a
decline in sales of 1.4% due to improvements in occupancy rates in the
leasing business and subsequent reversals in vacancy loss reserves, and
reductions in selling, general and administrative costs.
*Full year estimates were left unchanged and call for 1.0% and 74.4%
year-over-year increases in sales and operating income respectively.
*The Bridge Report also highlights the New Midterm Business Plan entitled
"Creating Future" and its goal of "establishing foundations for future
growth" and measures to realize large improvements profitability.
Leopalace21 Corporation was established in August 1973 and conducts
construction, leasing, and sales of apartments, condominiums, and residential
housing, in addition to development and operation of resort facilities, and
the operation of hotel business, broadband business, and elderly care
business. The Company was first listed on the JASDAQ Market in February 1989,
and moved its shares to the First Section of the Tokyo Stock Exchange in March
2004. Its headquarters are currently located in Tokyo.
During the first half of the current term, the Company's sales declined by
1.4% year-over-year to JPY219.9 billion but operating income recovered to
JPY1.8 billion, compared with the operating loss JPY2.1 billion recorded
during the previous first half. This improvement in profitability is
attributed to improvements in occupancy rates and subsequent reversals from
vacancy loss reserves, as well successful efforts to reduce administrative
costs. Both sales and operating income exceeded outstanding estimates.
Despite this better than expected earnings performance in the first half,
Leopalace21 maintains its outstanding earnings estimates for the full fiscal
year to March 2013 and calls for sales and operating and net incomes are
expected to rise by 1.0%, 74.4%, and 246.1% year-over-year to JPY463.9,
JPY8.0, and JPY5.5 billion respectively.
The Bridge Report calls attention to the New Midterm Business Plan entitled
"Creating Future" and measures designed to realize large improvements in
profitability. This Plan covers the period from fiscal year March 2013 to 2015
and calls for "operating income margin of 3.5% and ROE of 20%" to be achieved
in the final year of the plan. Furthermore, implementation of various measures
including the sales of solar power generation and security systems, and
expansion of offices in major metropolitan areas to raise occupancy rates are
also called for. In addition, the Bridge Report calls attention to
Leopalace21's ability to leverage its strengths in product and planning
capabilities to capture growing demand for residential properties from single
residents and for attended care services for elderly Japanese as important
factors for the Company's intermediate term growth.
To view the full report, please go to the following.
About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate
and objective information about the earnings, business strategies, and other
information of publicly traded Japanese companies.
Investment Bridge Co., Ltd.
Kaoru Hosaka for Leopalace21 Corporation
+81-3-5842-5765 (Japanese correspondence only)
email@example.com (English and Japanese correspondence)
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