SHINNIHON CORPORATION1879

Why the market may be pricing it low

• Profits from the development business rely on continued Tokyo-area condo price gains, and fears that rate hikes will cool buyer demand weigh on the valuation.

  開発事業等では、首都圏マンション市場の販売価格の上昇が続くなか、今後は金利上昇と物価高騰による顧客の購入意欲の低下が懸念されます。Management policy

• Founder-linked holders Shinnihon.com and Union Site control about 45% combined, alongside regional-bank cross-holdings, leaving thin float and little outside pressure to re-rate.

  - 株式会社シンニホンコム 33.7% - 株式会社ユニオンサイト 11.6%Shareholders

• The company prioritizes building internal reserves over returning cash to shareholders, so its growing cash pile earns little credit from the market.

  財務体質のより一層の強化と今後の事業展開に備え、内部留保の充実に努める方針であります。Dividend policy

What could close the gap

• This year's dividend was raised by 11 yen to 67 yen from the prior year; continuation of this increase trend could change how the market values shareholder returns.

  中間配当30円と合わせて前期より11円増配し、67円としております。Dividend policy

• A clear shift 'from a construction-order business to a construction-sales business' could help the stock escape its low valuation as a pure contractor.

  従来の建設受注産業から建設販売産業への転換を目指しManagement policy

How a buyer could still lose (value trap)

• The nominated (non-bid) order ratio jumped from 54.6% to 80.0% in one year; if this reverses, the recent profit growth could unwind.

  建築工事54.645.4100.0土木工事―――当事業年度(自 2025年４月１日至 2026年３月31日)建築工事80.020.0100.0MD&A

• The company itself warns that a downturn could reduce buyer appetite and impair inventory value, directly hitting profits from its condo development business.

  当該リスクが顕在化した場合、顧客の購買意欲の減退や棚卸資産等の価値が下落する可能性があり、これらは当社グループの業績等に影響を与える可能性があります。Risk factors

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥138.4bn

Operating profit

¥20.4bn

Net profit

¥15.2bn

Operating cash flow

¥17.2bn

Cash

¥95.8bn

Debt

¥0.0bn

Equity

¥134.5bn

Annual report for the year to 2026-03-31