Randix Co., Ltd. Announcement of financial results for the second quarter of the fiscal year ending March 2025

[Randix Co., Ltd.] Announcement of financial results for the second quarter of the fiscal year ending March 2025 ​
Randix Co., Ltd. Press release: November 12, 2024 Announcement of financial results for the second quarter of the fiscal year ending March 2025 Highest quarterly profit ever! Profit progress 50%
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This is a new villa project with a panoramic view of Mt. Fuji that we are currently developing. “The Third Place” proposes a new style of owning a vacation home, earning income through rental when not in use. Monetization is next term! Please look forward to it! Today, we have announced the interim financial results for the fiscal year ending March 31, 2025. In the 1Q stage, the profit level decreased due to inventory sales that had a lower profit margin in the previous fiscal year’s purchases, but in the 2Q, the target profit level for the current fiscal year was recovered, and the probability of achieving this fiscal year’s performance forecast has increased. Ta. I would like to explain the details between the lines that cannot be fully conveyed in the financial results briefing materials. Click here for the financial results summary. Click here for the financial results briefing materials. Landix’s business I heard about our company for the first time! I think some of you may be interested in this, so I would like to give you a brief introduction to our business. To summarize our company Landix’s business in one word One-stop service for real estate business centered on housing business Characteristics: Mainly wealthy customers, with over 30% of all contracts being referrals and repeat customers It can be expressed as
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-31bc62cae97f4357aa1ca763943cdad0-1603×756.png Overview of Landix’s business model
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-00f5b6ed1ce72e8889a3f8a5b52003ae-1590×751.png With a large number of referrals and repeat customers, we are able to carry out highly efficient sales activities, and since our founding we have recorded increases in sales and profits.Since our listing in 2019, sales CAGR has increased by 20%, and the number of employees has increased to 3 by the end of this fiscal year. It has grown to the point where it is expected to double. Performance summary In 2Q results, profit margin improved significantly: Ordinary profit margin 2.5% (1Q) → 8.7% (2Q cumulative) Also Quarterly profit is record high (Operating income was 760 million yen, a record increase of 22%).
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-88d1ae70c4342e9fb2196abaac29f395-1586×835.png Summary of 2Q financial results Business performance was strong in the second quarter, and to put it simply, this is the main reason. Since the second half of the previous fiscal year, we have focused our purchasing efforts on areas in which we excel, and as a result, the profit level from properties we sell has been stable. Additionally, although we made disclosures during the period, one factor was that particularly large, high-quality properties were delivered. → (Reference) Kamiyama Town: Timely disclosure of delivery of large properties I will explain it below. 1. Performance progress Compared to the forecast for the fiscal year ending March 31, 2025, sales of 20 billion yen and ordinary income of 1.63 billion yen The progress rate for sales was 47.5%, and the progress rate for ordinary income was 50.7%, indicating a smooth turnaround at the halfway point.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-30231fb7ccaa1f30cafa4ae2de0a383c-1587×836.png P/L and performance forecast achievement rate as of 2Q
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-e6ec25ae028ee61fec8f0c794028b51b-1589×788.png Yearly progress and performance trends in sales and profits 2. Record-high quarterly profit
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-9ca9cf0af70eebc3de5842b71b1ce944-1603×809.png Quarterly performance trends In the second quarter, operating income reached a record high of 768 million yen. The cumulative total for 2Q was 24.3% yoy. 3. Recovery of profit margin Our forecast for this fiscal year was an operating profit margin of 8.8%, but it has recovered to 9.4% as of 2Q. 4. Forecast of business results for this fiscal year Regarding the fiscal year ending March 31, 2025, there are several large properties scheduled to be delivered in the fourth quarter (several contracts have been concluded), and large sales are expected, so quarterly results are expected to fluctuate
significantly. We disclose sales trends as a guideline.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-73485443a243a1d5c69dfa888110c612-1495×667.png Forecast of quarterly performance trends for the fiscal year ending March 31, 2025 We expect to break 6.5 billion yen in the 4th quarter (a record high for quarterly sales) and reach the annual forecast of 20 billion yen. Prospects for growth From here, I will briefly touch on our company’s growth potential. 1. Responding to the needs of wealthy people Our business development policy can be summarized in one word Developing a stock-type real estate business centered on wealthy customers At our company, we want to be a trusted real estate partner that has the value of relationships with wealthy customers that we have gained through our housing business, and that these customers use us over and over again! We place importance on this idea. By sincerely addressing the primary needs of purchasing a home and gaining their trust, we are able to attract important friends and family members who want to come back to us again, saying things like, “Okay, I’d like to buy an investment,” or “Okay, I’d like to use real estate.” We conduct our business activities with the desire to be introduced to you.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-d4e7a1accd7a869cf0ead6aeebf0c46d-1516×706.png Changes in real estate needs of wealthy customers This is what we think of as “business synergy.” 2. Construction company matching and track record One of our major strengths is our ability to match construction companies.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-be54e378a0e3b23a6ff87d019520febd-1547×603.png Construction company matching sumuzu Instead of the traditional vertical real estate consideration flow where “land is handled by real estate agents” and “buildings are handled by construction
manufacturers”, sumuzu matching provides comprehensive advice with an eye to the completed system from the land acquisition stage. • I don’t understand the specialized aspects of architecture • I don’t understand the contents of the estimates as they vary from company to company • Isn’t there a better design that’s cheaper? There are a lot of concerns and dissatisfaction from our customers, but we will answer each of these questions one by one, act as a conduit with the construction company, and work with you to complete the ideal home. By the way, this service is provided as part of our land brokerage value-added services and is operated without any particular cost. Over the past three years, the amount of buildings we have contracted has steadily increased.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-17b55ba2a394ce11b9d0db5609df4a31-1590×786.png 3. Improving added value by establishing a construction company We have decided to establish a new company and plan to obtain a construction license on October 11th. Actual operation and sales will not start from the next fiscal year (2026/3), but we view this as an important business that will add significant added value to our business. → Click here for the full disclosure Status of our company’s performance improvement for this fiscal year In the fiscal year ending March 31, 2024, profits fell below the previous year’s level due to cost increases. In the fiscal year ending March 31, 2025, we are planning to deliver a large income-generating property in the second half of the year (contracts have already been concluded during the fiscal year), and we have purchased the inventory necessary to achieve our performance forecast for this fiscal year.
https://prcdn.freetls.fastly.net/release_image/50149/74/50149-74-5f8608c8c20d627e966f57d98c7e72c6-1539×655.png Furthermore, as I mentioned in the beginning, we have “focused our purchasing efforts on our strong areas,” and as a result, the profit margin on property sales is also on a stable trend. At the stage of today’s 2Q financial results announcement (November 12, 2024), we are on track to achieve the performance forecasts announced at the beginning of the fiscal year (sales of 20 billion yen and ordinary income of 1.63 billion yen). Although there are some challenges due to soaring construction costs and rising real estate prices, we will continue to work together as a company to achieve business results! Please continue to watch Landix stock!