Nihon M&a Center Holdings Stock Earnings Reports

Company delivered a strong first-half performance with sales of JPY 22.5 billion (+21.5% YoY) and ordinary profit of JPY 8.1 billion (+43.1%), prompting an upward revision to the first-half forecast. Closed transactions rose to 488 (+7.5% YoY) and average M&A sales per transaction improved to JPY 44.6 million (+12.6%), helped by a larger number of big-ticket deals (46, +58.6%). Accounting reclassification shifted JPY 943 million from cost of sales to SG&A, but the cost-of-sales ratio improved to 38.1% (from 40.4% prior year) while SG&A as a percent of sales declined to 24.7%. Leading indicators show declines in new sell-side and buy-side mandates and new negotiations (selectivity increased to prioritize higher-probability deals), prompting a company campaign to boost mandate acquisition—targeting experienced staff and newer consultants—to restore pipeline. Headcount: modest net increase in M&A consultants (+10) amid turnover rising to 18.7% (driven mainly by shorter-tenure hires); proportion of consultants with ≥3 years rose to 45.3%. Balance sheet remains strong: total assets JPY 60.52 billion, net assets JPY 48.34 billion, ROE ~22.9%. Dividend guidance unchanged at JPY 29/share (payout ratio ~83.6%); company maintains policy of 60%+ payout in midterm plan. Management guidance: target sustainable double-digit growth but has minimum targets to secure at least ~7% (with aim to exceed 10%) going forward.