FJ NEXT HOLDINGS CO., LTD.8935

Why the market may be pricing it low

• The company itself discloses that its asset-management condo product carries inherent risk of losses from falling rents or rising rates, a structural reason the market stays wary of this business.

  一般的にマンションによる資産運用には、入居率の悪化や家賃相場の下落による賃貸収入の低下、金利上昇による借入金返済負担の増加など収支の悪化につながる様々な投資リスクが内在しますRisk factors

• Management acknowledges litigation risk from customers who bought without fully understanding investment risk due to inadequate sales explanations, a trust issue typical of single-room investment condo sellers.

  一部営業職員の説明不足等が原因で投資リスクに対する理解が不十分なままマンションが購入されたこと等により、顧客からの訴訟等が発生した場合、当社グループの信頼が損なわれるRisk factors

What could close the gap

• The company added a special dividend on top of the ordinary dividend to raise annual dividends to 66 yen, and continued progressive dividends could shift how shareholder returns are perceived.

  普通配当１株当たり28円に特別配当10円を加えた38円とし、すでに実施済みの中間配当28円とあわせまして、年間配当は１株当たり66円を予定しておりますDividend policy

• The equity ratio rose from 69.1% to 71.2%, and if wariness about debt dependence eases, this could become a re-rating trigger.

  自己資本比率は71.2％（前連結会計年度末は69.1％）となりましたMD&A

• The company is focusing on expanding used-condo transactions, and a shift away from new-build-centric sales could change the risk image that weighs on the stock.

  所有物件における売却ニーズの増加に対応し、売却査定・買取りの体制を強化し、中古マンションの取引拡大を図ってまいりますManagement policy

How a buyer could still lose (value trap)

• Net income was 10.0 billion yen but operating cash flow only 7.1 billion yen, as inventory build-up in for-sale properties means profit is not fully backed by cash.

  Based on the figures below

• Since land purchases depend on bank borrowing, a rise in interest rates would increase interest expense and could shrink the earnings that currently look cheap.

  Based on the figures below

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

¥142.4bn

Operating profit

¥14.4bn

Net profit

¥10.0bn

Operating cash flow

¥7.1bn

Cash

¥25.7bn

Debt

¥14.8bn

Equity

¥81.1bn

Annual report for the year to 2026-03-31