JINUSHI | 3252 (TSE Prime)
Company Report

Strategy Advisors,

August 26, 2024

Keita Fujino

Inc.

Stock Price and Volumes

H1 Results Shows Strong Progress inBoth Sales and Profit, Compared toFull-Year Forecasts
JINUSHI (hereafter "the company") reported their H1 FY12/2024 results with a
333.1% YoY rise in net sales and a 339.3% YoY rise in net profit attributable toowners of the parent entity. The increase in revenue was driven by the flowbusiness, off the back of which, net income for the interim period also increased
significantly.

Source: Strategy Advisors

The percentage of progress toward the company's full-year forecasts for FY12/2024
was high with 81.7% in sales and 104.8% in net profit attributable to owners of theparent entity. Net profit in H1 exceeded the net profit forecast for the full-year due
to the strong performance of the business, a lower effective tax rate as a result of
the liquidation of a subsidiary and foreign exchange gains due to the depreciation of
the yen.
Purchases, which are important in predicting future trends in earnings, areconsidered to remain strong, with 44 agreements in H1, nearly the same level as 45
agreements in 1H of last year. One of the company's growth strategies is todiversify its clients in its business sectors and it has recently increased the numberof tenants from businesses that play a role in social infrastructure. As a result of thisstrategy, about 60% of its agreements are with social infrastructure companies.
The company's full-year forecasts for FY12/2024 remain unchanged. Although net
profit in H1 has already exceeded the full-year forecast, partly due to foreignexchange gains, the company has retained the full-year forecasts unchanged
because of the uncertainty surrounding the exchange rate at the end of the year.
Even excluding the foreign exchange gains, the company's performance in H1
showed strong progress to meet the initial full-year forecasts, and we therefore
believe that the probability of the company achieving the initial forecasts has
increased.

Key Indicators
Stock Price (2024/8/23)

2,041

YTD High (24/7/4)

2,802

YTD Low (24/8/4)

1,642

52-Week High (2024/7/4)

2,80252-Week Low (2024/8/4)

1,642

Number of Shares Issued

21.1

Market(mn) Capitalization (\bn)

41.0

EV (\bn)

78.0

Equity Ratio (12/2023, %)30.9

ROE (FY12/2023

15.1

Source:Advisors
Actual, Strategy%)

The company's relative stock price has been significantly underperforming the
TOPIX due to a major round of financing implemented in July. The financing was
conducted because the company has greater confidence that current strong
purchases would lead to good future performance and we expect the strong
performance to be factored into the stock price in the future.
Japanese GAAP - Consolidated
FY End

Sales

YoY

OP

YoY

RP

YoY

NP

YoY

EPS

DPS

(\ mn)(%)(\ mn)(%)(\ mn)(%)(\ mn)

(%)

(\)

(\)

FY12/2023 H1

10,373

-61.7

693

-81.5

711

-81.8

1,193

-53.6

65.3

ー

FY12/2024 H1

44,929

333.1

6,962

903.6

7,100

898.2

5,242

339.3

318.2

ー

FY12/2021

56,177

ー

5,475

ー

5,002

ー

3,124

ー

170.9

50.0

FY12/2022

49,887

-11.2

6,411

17.1

5,943

18.8

3,641

16.5

199.2

55.0

FY12/2023

31,597

-36.7

6,154

-4.0

5,718

-3.8

4,709

29.3

267.8

55.0

FY12/2024 CoE

55,000

74.1

8,200

33.2

7,300

27.7

5,000

6.2

277.3

85.0

Note: Due to a change in fiscal year end, FY12/2020 is a nine-month period, so YoY comparisons for FY12/2021 are not available.
Source: Strategy Advisors. Based on Company Data.

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JINUSHI | 3252 (TSE Prime)
Table of Contents
1. H1 FY12/2024 Results Show Strong Progress in Sales & Profits Compared to Full-Year Forecasts .......... 3
2. Recent Trends in the JINUSHI Business .......................................................................................... 7(1) Buying (Purchasing) Land ........................................................................................................ 7(2) Leasing Land ....................................................................................................................... 10(3) Sales .................................................................................................................................. 10
3. Recent Trends of JINUSHI REIT .................................................................................................. 11
4. Significant Financing.................................................................................................................. 12
5. Outlook for FY12/2024 .............................................................................................................. 13
6. Stock Trends and Valuations ....................................................................................................... 14

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JINUSHI | 3252 (TSE Prime)
1. H1 FY12/2024 Results Show Strong Progressin Sales & Profits Compared to Full-Year
Forecasts
Strong Progress in BothSales & Profits Comparedto the Company’s Full-Year
Forecasts

In H1 FY12/2024, sales increased 333.1% YoY to \44.92 billion, operating
income increased 903.6% YoY to \6.96 billion and net income attributable toowners of the parent increased 339.3% YoY to \5.24 billion. The percentage
of progress toward the company's full-year forecasts for FY12/2024 was
81.7%, 84.9% and 104.8% respectively, showing strong progress in bothsales and profits. Net income attributable to owners of the parent exceeded
the full-year forecasts of \5.0 billion due to an increase in profit (\350 million)
resulting from 2 reasons; a lower effective tax rate following the liquidation of
a subsidiary and foreign exchange gains (\410 million) resulting from a loan
to a US subsidiary.

Figure1 . Summary of H1 Results for FY12/2024(\ mn)

FY12/2024 H1

YoY

(A)

Progress

FY12/2024 Full-Year(A)/(B)

CoE (B)Sales

44,929333.1%

81.7%

55,000Operating Income

6,962

903.6%

84.9%

8,200

Recurring Income

7,100

898.2%

97.3%

7,300

5,242

339.3%

104.8%

5,000

Net Income Attributable to
Owners of the Parent

Source: Strategy Advisors. Based on Company Data.

Significant YoY Increasein Sales Due to an
Increase in the Number ofSales Deals

The great rate of progress in sales was due to an increase in the number ofsales deals. This was result of the steady progress of sales to JINUSHI REIT,
whose AUM increased as a result of the 8th capital increase in January 2024,
and sales through the use of bridge schemes by leasing companies proceedingsmoothly.

Decline in Gross Profit
Margin was Mainly Due toan Increase in Sales ofLeased Land

Gross profit grew 3.4 times YoY to \9.41 billion, but the gross profit margin
declined 6.0 percentage points YoY to 20.9%.
The company's revenues can be categorized into flow business, stock businessand others. The size of others is exceedingly small, so the flow business andthe stock business account for the majority of the company's total revenue.
There is a large difference in gross profit margin between flow business andstock business; and the change in the composition of flow business and stockbusiness has had a significant impact on the overall gross profit margin.

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JINUSHI | 3252 (TSE Prime)
81.8% of gross profits in H1 FY12/2024 was derived from the flow businessrevenue, while 18.1% was from the stock business revenue and just 0.1%
was from others. The main reason for the overall decline in gross profit
margin was the increase in revenues from the flow business, which has arelatively low gross profit margin, due to the significant increase in sales ofleased land.
Gross profit margin for H1
raised from Q1, even if
only flow businessrevenues were considered

Flow business revenues are equal to real estate sales revenues. They arehighly variable, depending on status of sales of leased land and the
profitability of individual properties that are sold. The gross profit margin of
the flow business was 17.9% in H1 FY12/2024, up from 16.4% in H1
FY12/2023. The gross profit margin of the flow business is highly dependent
on the individual deals. The gross profit margin of the flow business was low
at 15.3% in Q1, but the profit margin increased in H1 as the company
gradually added deals for sale, as the company had planned.
The stock business is categorized by business segment into leasing income
from Real Estate Investment Business (leasing income while holding), Real
Estate Leasing Business and the Asset Management Business. The
composition of stock business revenues also rises and falls as they areaffected by increases and decreases in ones of flow business. However, thecompany's long-term policy is to improve earnings stability by using stable
stock revenues to cover fixed costs and it is significant that the amount ofstock business revenues continues to increase.

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JINUSHI | 3252 (TSE Prime)
Figure 2. Gross Profit by Business Type
Others（¥ mn, LHS）

Flow Business（¥ mn, LHS）
Stock Business（¥ mn, LHS）

10,857
11,00010,000

9,263

9,100

10,49910

100%
Composition of Stock Business（RHS）
9,411
6

9,000
7,000
5,000
4,000
3,000

7,032

5,019

3,874
22.7% 22.8%

8,469

0

2,068

1,144

7,722

16.3%
1,509

60%

48.1%
7,698

7,753

50%
40%

22.0%

2,000
1,000

80%
70%

8,000
6,000

90%

2,388

26.3%

2,766

FY3/20 FY12/20FY12/21FY12/22FY12/23

2,793
9

18.1%

20%

1,439
1,344

30%

1,706

10%
0%

FY12/23 FY12/24
H1

H1

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Segment classifications have been changed from FY12/24; figures for FY12/23
are based on the new classifications. Prior to FY12/22, "Others" in the newclassification is included in "Flow Business".
Source: Strategy Advisors. Based on Company Data.

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JINUSHI | 3252 (TSE Prime)
Figure 3. Gross Profit Margin Trends
100%

86.2%

90%

86.1%

82.0%

85.3%

87.4%

80%
70%
Whole
60%
Stock Business
50%
Flow Business
40%

33.2%
26.9%

30%
20%

21.8%
16.8%

16.5%

13.6%

14.3%

27.2%

12.3%

10%
9.8%

20.9%

18.0%

16.4%

17.9%

0%
FY3/20 FY12/20 FY12/21 FY12/22 FY12/23

FY12/23 FY12/24
H1

H1

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Segment classifications have been changed from FY12/24; figures for FY12/23
are based on the new classifications. Prior to FY12/22, "Others" in the newclassification is included in "Flow Business".
Source: Strategy Advisors. Based on Company Data.

Operating Profit Margin
Increased Due to an
Increase in Total
Revenues

Selling, general and administrative (SG&A) expenses increased 16.6% YoY to\2.44 billion, but the SG&A-to-sales ratio declined 14.7 percentage points YoY
to 5.5% due to a significant increase in gross profit and the operating profit tosales ratio rose 8.8 percentage points YoY to 15.5%.
In addition, there was no corresponding extraordinary profit in H1 FY12/2024,
while an extraordinary profit of \1.2 billion was posted in H1 FY12/2023. As aresult, the net profit margin rose only 0.2 percentage points. However, due inpart to a lower effective tax rate following the liquidation of a subsidiary andin part to foreign exchange gains on a loan to a U.S. subsidiary due to a
weaker yen in non-operating income, net profit attributable to owners of theparent rose 339.3% YoY.

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JINUSHI | 3252 (TSE Prime)
2. Recent Trends in the JINUSHI Business
The JINUSHI Business is a model based on increasing real estate holdings
while maintaining a continuous turnover of funds by taking the following four
steps: buying (purchasing) land, leasing land, selling leased land andmanaging investors' funds.
Of the four steps, the "managing investors' funds" process is handled by
JINUSHI REIT which JINUSHI Asset Management, a wholly owned subsidiary,
manages and will be described in the following chapter, "Recent Trends of
JINUSHI REIT”.

(1) Buying (Purchasing) Land
Purchases in the Volume
Was Down YoY. But the
Number of Purchases Wasat the Same Level as
Previous Year and is
Judged to be Steady

Purchases (agreement basis) in H1 fell 13.9% YoY to \29.8 billion, while thebalance of real estate for sale at the end of H1 was \60.6 billion, increased by
27.5% over H1 previous year.
The decrease in purchases from H1 previous year was due to the large
purchase in H1 previous year. The number of purchases, 44, was at almost
the same level as 45 in H1 of the previous year and is considered to havebeen strong in terms of purchases.
Figure 4. Purchases
60,06058,80060,00050,00040,00046,00041,99543,49335,50060,61838,38829,80028,19230,00020,40020,00016,00010,0000FY 3/20

FY12/20

FY12/21

Purchases（Agreement base）（¥ mn、LHS）

FY12/22

FY12/23

FY12/24H1

Real Estate Held for Sale（¥ mn、LHS）

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Source: Strategy Advisors. Based on Company Data.

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JINUSHI | 3252 (TSE Prime)
Figure 5. Number of Agreements for Purchases and Value of Purchases
Per Agreement (Quarterly)

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Source: Strategy Advisors. Based on Company Data.

Social Infrastructure
Tenants Supporting Robust
Procurement Agreements

The company's solid procurement is largely supported by an increase in thenumber of properties dealing with social infrastructure tenants. The company
has been working to diversify the business sectors of its tenants and has beensteadily converting the ardent desire of social infrastructure tenants to open
new stores. Already, more tenants are being acquired in areas such as
hospice Facilities, nursing homes and funeral halls. Of the 44 contracts
purchased during H1 of FY12/2024 with a total purchase amount of \29.80
billion, 24 were for social infrastructure tenants with a total purchase amountof \7.30 billion. This represents 54.5% of the total number of contracts and24.5% of the total purchase amount.

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JINUSHI | 3252 (TSE Prime)
Figure 6. Percentage of Deals for Social Infrastructure Tenants in
Procurement: By Number of Agreements
53.0%

54.5%

100

60%
50%

90

83

80

40%

27.3%

30%

70
39

60

20%

10.8%

50
0.0%

40

37

44
33
20

24

30

33

20
10

24

0

0
FY12/2024

4FY12/21

9

-20%
-30%

FY12/22

Necessities（LHS）
Diversification of Infrastructure（RHS）

0%

-10%

44

24

10%

FY12/23

FY12/24 H1Infrastructure（LHS）

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Source: Strategy Advisors. Based on Company Data.

Figure 7. Percentage of Social Infrastructure Tenant Deals in
Procurement: Based on Purchase Price
22.4%

19.6%

80,00058,8007.4%

60,0000.0%

10%46,0000%40,00045,50030,00020,00010,000030%
20%70,00050,00024.5%

16,00042,500-10%

20,40022,50016,40016,0000FY12/20

29,800

3,400

4,000

FY12/21

FY12/22

Necessities（¥ mn, LHS）
Diversification of Infrastructure（RHS）

13,200FY12/23

7,300

-20%
-30%

FY12/24 H1Infrastructure（¥ mn, LHS）

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Total amounts do not match due to rounding.
Source: Strategy Advisors. Based on Company Data.

9

JINUSHI | 3252 (TSE Prime)(2) Leasing Land
Number of Tenants
Increased by 10, Versus
the End of FY 12/2023

The number of tenants with long-term fixed-term lease agreements with thecompany increased by 10 companies from the end of FY12/2023 to 134 at theend of H1. The company's tenants include supermarkets, which accounted for
25 of the 134 tenants at the end of H1, which is then followed by drugstores(12), restaurants (10), automobile dealers (10), funeral halls (9) and home
improvement stores (8). The company is currently expanding its tenant baseto include businesses that serve social infrastructure, expanding thatcategory’s presence.
Figure 8. Number of Tenants (Companies)

134

140
124
120
100

87

93

100

80
60
40
20
0
FY12/20

FY12/21

FY12/22

FY12/23

FY12/24 H1

Note: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Source: Strategy Advisors. Based on Company Data.

(3) Sales
The company has been relentlessly buying land and then leasing it out totenants, turning it into a real estate financial product that generates long-term
stable cash flows, which it then sells to funds such as JINUSHI REIT and otherinvestors. As of the end of H1 FY12/2024, the company has cumulatively
been involved in 410 projects worth roughly \505.7 billion. Although manytenants have historically come from the retail industry, esp. supermarkets,
which have been the most common type of tenant, they still account for lessthan 25% of the total tenant base.

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JINUSHI | 3252 (TSE Prime)
In terms of region, about 84% of the company's development projects are in
the Tokyo, Nagoya and Osaka areas, but there is no concentration ofdevelopment in any one area.
The percentage of sales by JINUSHI REIT and group companies (sponsor
pipeline support ratio) is 64.6%. Of these, 31.1% were directly incorporated
into JINUSHI REIT and 33.5% were sold through bridge schemes. A bridge
scheme is a "sale of properties by JINUSHI and group companies where thebuyer is a third party designated by JINUSHI Asset Management (usually
JINUSHI REIT, but not always)" and it grants preferential negotiation rights
for acquisition to a third party designated by JINUSHI Asset Management (ineffect, presumably the JINUSHI REIT). Leasing companies such as SMFL Mirai
Partners, a wholly owned subsidiary of Sumitomo Mitsui Finance and Leasing
and M.L. Estate, a wholly owned subsidiary of Mizuho Lease, stand in
between.
In addition, the company sets the approximate time from land purchase tosale at 1 to 1.5 years, emphasizing the extent of the turnover of the funds.

3. Recent Trends of JINUSHI REIT
JINUSHI REIT
Low-Risk, Low-Volatility

JINUSHI REIT, managed by wholly owned subsidiary JINUSHI AssetManagement, is the only private REIT in Japan specializing in leased land. The
product concept is based on an LTV level of approximately 20-40%, with anemphasis on financial stability and a distribution yield of approximately 3.5%
per annum. As for its track record, since the start of operations, the fund has
operated at an LTV level of about 30% and a distribution yield of about 4.0%
per annum, and as of January 10, 2024, after the 8th offering, both the LTV
and distribution yield have remained at these levels. As of the same date, thefixed loan ratio was 100% and the average remaining loan term was 5.3
years.

JINUSHI REIT's AUM
Expands to \221.6 billion

No other REITs, both listed and private, specializes in leased land. As ofJanuary 10, 2024, after the completion of the 8th capital increase, thebalance of assets under management (AUM) had increased to \221.6 billion.

11

JINUSHI | 3252 (TSE Prime)
Figure 9. JINUSHI REIT (Private REIT for Leased Land) AUM GrowthNote: Due to a change in the fiscal year end, FY12/20 is a 9-month accounting period.
Source: Strategy Advisors. Based on Company Data.

As of January 10, 2024, after the completion of the 8th capital increase, thenumber of properties under management is 154 and 76.0% of the portfolio in
AUM is derived from business sectors of tenant as follows: supermarkets(31.2%), home improvement stores (27.4%) and drugstores (17.4%). The
portfolio is highly concentrated in these top three sectors.

4. Significant Financing
The company announced on July 11, 2024 (closing price: \2,737) that it
would conduct a financing mainly through a public offering. The details werethat the firm would issue 2,865,300 new shares, dispose of 700,000 treasury
shares and conduct and conduct a secondary offering of 418,600 shares by
way of overallotment (OA).
The financing was then conducted at an offering price of \2,168, which was
calculated by multiplying the closing price of \2,236 yen on July 23 by adiscount rate of 3.04%.

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JINUSHI | 3252 (TSE Prime)
This round of financing had the following three purposes.
1. Future growth. The total amount raised (including the secondary offering)
was \8.28 billion, which will be used entirely for purchasing new development
lands during FY12/2024. The timing of the financing was due to thecompany's growing confidence with its current strong purchases that would
lead to future earnings.
2. Strengthening the financial condition. Shareholders' equity was \30.94
billion at the end of FY12/2023 and \35.53 billion at the end of H1
FY12/2024, and increased to \43.81 billion after the financing. Accordingly,
the equity ratio is expected to increase to about 38.5% after the financing,from 30.9% at the end of FY12/2023 and 33.7% at the end of H1 FY12/2024.
3. Improvement of stock liquidity. The number of shares with liquidation after
the financing is estimated to increase by more than 30% from the end of H1
FY12/2024. The company expects that the increase in liquidity of its stocks
will lead to an increase in investment from institutional investors, who had
previously been reluctant to invest in the company.

5. Outlook for FY12/2024
Company’s Forecasts for
FY12/2024 Remain
Unchanged

For FY12/2024, the company projects sales of \55.0 billion (+74.1% YoY),
operating profit of \8.2 billion (+33.2% YoY) and net profit attributable toowners of the parent of \5.0 billion (+6.2% YoY).

Expect a Large Increase in
Profit in FY12/2024. But a
Decline in Profit Margin

As shown in Figure 4, the balance of real estate for sale at the beginning of
FY12/2024 is expected to increase 113.0% from the beginning of the previous
period and the strong purchasing conditions of the previous period are
expected to continue into FY12/2024, resulting in a significant increase inrevenue. On the other hand, gross profit margin is expected to decline fromthe previous year due to the absence of property purchased around 2018 that
correspond to high-margin, large-scale transactions, which occurred in theprevious year and hence operating profit margins for FY12/2024 are projected
to decline 4.6 percentage points YoY to 14.9%.

Net Profit is Expected to
Increase Despite theAbsence of Extraordinary
Gains from the Previous
Fiscal Year

Furthermore, the company expects to lose the extraordinary gains from thesale of fixed assets in the previous fiscal year, but still expects to secure an
increase in net profit attributable to owners of the parent, driven by asignificant increase in sales. In addition, the \350 million added by the lower
effective tax rate due to the liquidation of a subsidiary, which was notincluded in the initial full-year forecasts, increases the probability of anincrease in profit. The \410 million foreign exchange gain recorded in
H1FY/2024 was due to the exchange rate of \161 per dollar at the end of H1,
compared to the assumed exchange rate of \140 per dollar at the end of
FY2024. The final full-year foreign exchange gain will depend on the exchange
rate at the end of FY12/2024.

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JINUSHI | 3252 (TSE Prime)
Maintain our judgment
based on verification ofcertainty of significant
revenue increase in ourprevious reports

Increased Certainty ofAchieving the Initial
Operating Income forecasts

In our previous report（issued on April 9, 2024）, we verified the certainty ofa significant increase in sales, which will be the focus of FY12/2024 results, by
simulating the ratio of the sum of the amount of real estate for sale at the endof the previous period and purchases (on a recorded basis) in the current
period to the cost of sales in the current period. As a result, Strategy Advisors
judged that \55.0 billion in net sales for FY12/2024 is fully achievable and ourjudgment is maintained based on the high rate of progress in H1.
Strategy Advisors expects SG&A expenses to increase 8.2% YoY to about \4.7
billion in FY12/2024. But to achieve the company's forecasts of \8.2 billion in
operating profit, it is necessary for sales to exceed the level of the simulation
calculated using conservative conditions, or for the cost of sales ratio todecline. In addition to the high rate of progress in H1, the recent favorable
purchasing situation and the reduction in the cost of sales ratio from Q1 to Q2
have increased the certainty of achieving the company's projected operating
profit.

6. Stock Trends and Valuations
To see how the company's stock price has changed over the years, Figure 10
shows an index of the stock prices of major real estate finance companies andthe TOPIX (Tokyo Stock Exchange Stock Price Index) when the stock price atthe end of 2023 is set at 100.
Overall Stock Market Fell
Sharply in August 2024

In the Japanese stock market, after the Nikkei Stock Average reached the\40,000 level for the first time in history in February 2024, it once again
began to rise after a period of sluggish growth and the Nikkei Stock Average
hit \42,000 on July 11, 2024. The Nikkei Stock Average then turned to adowntrend, and after a sharp drop and a comeback driven by the sharp
appreciation of the yen in August 2024, the Nikkei Stock Average is currently
hovering around \38,000.

Relative Stock Prices
Remained Well Below TOPIX
Due to the Impact of Major
Financing in July 2024

In this process, the company's stock price fell because of the announcementof FY12/2023 full-year results on February 13, 2024. The relative stock pricefell below TOPIX, probably due to the fact that FY12/2023 results showed ayear-on-year decline in sales and profits and the company was seen as facinga high hurdle in achieving its full-year forecasts in FY12/2024. The stock pricesubsequently began to rise in March, with the Q1 earnings announcement on
May 10 confirming that the company was on track to meet its full-year
forecasts, and Daiwa Securities initiating coverage of the company with a buy
recommendation on June 17, leading the stock price to move higher and evenexceed TOPIX at times.
The situation changed after the announcement of the large financing on July11, when the company's stock price fell sharply and the relative stock pricealso fell below TOPIX. Even after the subsequent large plunge in the overall

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JINUSHI | 3252 (TSE Prime)
stock market in August, the effect of the dilution caused by the public offering
appears to have remained.
The sharp decline in the overall stock market in August ended the overall
inflow of funds into the stock market, and going forward, investors are likely
to select stocks based on fundamentals such as corporate performance.
Although there will be a time lag due to the large volatility of the overall stock
market, the strong performance shown by H1 earnings results is expected to
be factored into stock prices going forward.
The company's current valuations, which are 7.4 times PER and 1.1 times
PBR, with the stock price having adjusted to a level where it is undervalued interms of valuation. In particular, only Sun Frontier Fudosan (8923 TSE Prime)and Hoosiers Holdings (3284 TSE Prime) have lower P/E ratios than thecompany.
Figure 10. Stock Price Trends: Real Estate Finance Companies(End of 2023=100)

Note: Samty Holdings has been in the market since June 2024. Before May 2024,
stock price of Samty (3244) is substituted for one of Samty Holdings.
Source: Strategy Advisors

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JINUSHI | 3252 (TSE Prime)
Figure 11. Comparison with Other Real Estate Finance Companies
Code

Acct
PeriodNet Sales

Net
Income

(\mn)

(\mn)

Company NameNet
IncomeMargin
(%)

ROE

ROIC

(%)

(%)

JINUSHI3252

12/2023

31,597

4,709

14.9

15.1

4.6

Samty Holdings

187A

11/2023

198,660

10,306

5.2

10.1

3.7

Sun Frontier Fudosan

8934

03/2024

79,868

11,917

14.9

13.9

7.9

Tosei

8923

11/2023

79,446

10,507

13.2

13.6

5.4

Hoosiers Holdings

3284

03/2024

88,418

4,806

5.4

13.1

4.8

Ichigo2337

02/2024

82,747

12,108

14.6

11.6

2.2

ES-CON Japan8892

03/2024*

118,861

10,050

8.5

ー

ー

Net
D/E Ratio(Times)DCR(%)

Net Worth
Ratio
(%)

Code
Company Name
JINUSHI

3252

1.26

163.9

30.9

Samty Holdings

187A

2.09

205.7

25.5

Sun Frontier Fudosan

8934

0.34

113.3

48.0

Tosei

8923

1.30

120.5

33.4

Hoosiers Holdings

3284

1.28

157.8

23.6

Ichigo

2337

1.60

93.4

28.8

ES-CON Japan

8892

3.46

222.6

18.1

Note: Samty Holdings has been in the market since June 2024. Most recent results represent ones of Samty (3244) in
FY11/2023.
Due to a change in its fiscal year-end, Nippon ES-CON Corporation's FY03/2024 was a 15-month period. Therefore,
ROE and ROIC using the company's actual results were not applied.
Source: Strategy Advisors. Based on Company Data.

16

JINUSHI | 3252 (TSE Prime)
Figure 12. Comparison of Valuations with Peers
Code

Acct
PeriodCompany Name

Stock
PricesMarketCap

Company
Forecasts(24/8/23)(\mn)

JINUSHI
Samty Holdings
Sun Frontier Fudosan
Tosei
Hoosiers Holdings
IchigoES-CON Japan

3252
187A
8934
8923
3284
2337
8892

12/23
11/23
03/24
11/23
03/24
02/24
03/24

2,041
2,610
1,821
2,358
1,047
378
1,043

PER

41,066
133,917
88,414
114,271
37,223
165,463
99,629(Times)
7.4
10.7
6.3
10.2
7.3
11.8
10.0

PBR
Most
RecentResults(Times)
1.1
1.2
1.0
1.4
1.0
1.6
1.4

Dividend
Yield

ROE

(%)

Most
RecentResults
(%)

4.2
3.6
3.6
3.1
5.5
2.6
4.6

15.1
10.1
13.9
13.6
13.1
11.6
ー

Company
Forecasts

Note: Market cap is calculated using the number of shares outstanding excluding treasury stock.
Market cap of JINUSHI is calculated using the number of shares after the financing. It does not include the sharesfrom the secondary offering by way of overallotment (OA).
Samty Holdings has been in the market since June 2024. Until May 2024, Samty (3244) was in the market. Samty
Holdings has changed in its fiscal year end to December.
Due to a change in its fiscal year end, Nippon ES-CON Corporation's FY03/24 was a 15-month period. Therefore, ROE
using the company's actual results was not applied.
Source: Strategy Advisors. Based on Company Data.

17

JINUSHI | 3252 (TSE Prime)
Figure 13. Semiannual/Quarterly Performance Trends(\ mn)
Consolidated Statements ofIncomeNet Sales
Cost of Sales
Gross Profit
Gross Profit Margin Ratio
SG&A Expenses
SG&A to Sales Ratio
Operating Profit
Operating Profit Margin
Non-Operating Income and Expenses
Financial Balance
Equity in Earnings /Losses ofAffiliates
Other
Recurring Profit
Recurring Profit Margin
Extraordinary Income/Loss
Pretax Profit
Total Income Taxes(Corporate Tax Rate)
Net Profit Attributable to Ownersof the Parent
Net Profit Margin(\ mn)
Consolidated Statements ofIncomeNet Sales
Cost of Sales
Gross Profit
Gross Profit Margin Ratio
SG&A Expenses
SG&A to Sales Ratio
Operating Profit
Operating Profit Margin
Non-Operating Income and Expenses
Financial Balance
Equity in Earnings /Losses ofAffiliates
Other
Recurring Profit
Recurring Profit Margin
Extraordinary Income/Loss
Pretax Profit
Total Income Taxes(Corporate Tax Rate)
Net Profit Attributable to Ownersof the Parent
Net Profit Margin

22/12
H1

H2

23/12
H1

H2

24/12
H1

27,06921,105
5,964
22.0%
2,215
8.2%
3,749
13.8%
157
-276

22,81817,925
4,893
21.4%
2,231
9.8%
2,662
11.7%
-625
-305

10,373
7,580
2,793
26.9%
2,100
20.2%
693
6.7%
17
-177

21,224
13,518
7,706
36.3%
2,244
10.6%
5,461
25.7%
-453
-217

44,92935,518
9,411
20.9%
2,449
5.5%
6,962
15.5%
137
-181

173

-181

40

0

0

260
3,906
14.4%
-197
3,709
1,139
30.7%

-139
2,037
8.9%
-1,134
903
-172
ー

154
711
6.9%
1,207
1,918
700
36.5%

-236
5,007
23.6%
282
5,250
1,730
33.0%

318
7,100
15.8%
0
7,099
1,856
26.1%

2,569

1,072

1,193

3,516

5,242

9.5%

4.7%

11.5%

16.6%

11.7%

23/12
Q1

Q2

Q3

Q4

24/12
Q1

Q2

8,130
6,118
2,012
24.7%
1,098
13.5%
914
11.2%
-36
-72

2,243
1,462
781
34.8%
1,002
44.7%
-221
-9.9%
53
-105

14,837
8,416
6,421
43.3%
1,072
7.2%
5,349
36.1%
-70
-126

6,387
5,102
1,285
20.1%
1,172
18.3%
112
1.8%
-383
-91

29,72924,377
5,352
18.0%
1,225
4.1%
4,126
13.9%
165
-38

15,20011,141
4,059
26.7%
1,224
8.1%
2,836
18.7%
-28
-143

40

0

0

0

0

0

-4
879
10.8%
1,207
2,086
711
34.1%

158
-168
-7.5%
0
-168
-11
ー

56
5,277
35.6%
0
5,238
1,751
33.4%

-292
-270
-4.2%
282
12
-21
ー

203
4,292
14.4%
0
4,292
1,531
35.7%

115
2,808
18.5%
0
2,807
325
11.6%

1,350

-157

3,485

31

2,758

2,484

16.6%

-7.0%

23.5%

0.5%

9.3%

16.3%

Source: Strategy Advisors. Based on Company Data.

18

JINUSHI | 3252 (TSE Prime)
Figure 14. Consolidated Statements of Income (Full-Year Basis)(\ mn)

12/24
CoE

3/18

3/19

3/20

12/20

12/21

12/22

12/23

Net Sales
Cost of Sales
Gross Profit
Gross Profit Margin Ratio
SG&A Expenses
Operating Profit
Operating Profit Margin
Non-Operating Income
Interest and Dividend Income
Equity in Earnings of Affiliate
Profit on Currency Exchange
Other
Non-Operating Expenses
Interest Expense and DiscountEquity in Losses of Affiliates
Foreign Exchange Loss
Financing Costs
Other

31,26024,402
6,858
21.9%
3,174
3,684
11.8%
229
27
30
ー
172
869
542
ー
127
178
22

39,834
31,662
8,172
20.5%
3,725
4,447
11.2%
703
27
303
88
285
822
613
ー
ー
167
42

74,18765,087
9,100
12.3%
3,856
5,244
7.1%
403
12
166
79
146
1,049
729
ー
ー
272
48

29,88624,868
5,019
16.8%
2,599
2,420
8.1%
637
7
130
ー
500
900
392
ー
377
120
11

56,177
46,914
9,263
16.5%
3,788
5,475
9.7%
285
5
ー
138
142
758
457
83
ー
212
6

49,88739,03010,857
21.8%
4,446
6,411
12.9%
435
17
ー
296
122
903
598
8
ー
267
30

31,59721,098
10,499
33.2%
4,344
6,154
19.5%
227
15
40
84
88
663
445
ー
ー
186
32

55,000Recurring Profit
Recurring Profit Margin
Extraordinary Income
Extraordinary Loss
Pretax Profit

3,044
9.7%
ー
70
2,974

4,327
10.9%
333
829
3,831

4,599
6.2%
130
102
4,628

2,157
7.2%
ー
ー
2,157

5,002
8.9%
ー
73
4,927

5,943
11.9%
ー
1,331
4,612

5,718
18.1%
1,489
40
7,168

7,300
13.3%

992

1,312

1,538

612

4,006

1,423

2,268

Corporate, Inhabitant andEnterprise Taxes
Income Taxes-Deferred

8,200
14.9%

-30

-165

-87

-100

-2,203-456

162

Total Income Taxes(Corporate Tax Rate)
Net Profit Attributable to Ownersof the Parent
Net Profit Margin

962
32.3%

1,146
29.9%

1,451
31.4%

512
23.7%

1,803
36.6%

967
21.0%

2,430
33.9%

1,958

2,684

3,177

1,644

3,124

3,641

4,709

6.3%

6.7%

4.3%

5.5%

5.6%

7.3%

14.9%

9.1%

EPS (\)
Investment in Tangible andIntangible Fixed Assets
Depreciation and Amortization of
Goodwill
Cash Flow
CFPS (\)
ROE
ROIC (Capital Invested)
ROIC (Business Assets)
Dividend (\)
Average Number of Shares During
the Period (mn Shares)
Number of Shares at End of Period(mn Shares)

109.61149.30174.5989.94

170.90199.16267.76277.26

72

338

197

2,954

14,142

500

723

159

166

116

72

148

148

206

2,118
118.6
10.4%
4.8%
7.5%
55.00

2,850
159.5
12.8%
4.2%
5.9%
55.00

3,293
182.5
14.0%
4.6%
6.5%
55.00

1,716
93.8
6.8%
2.8%
4.4%
25.00

3,272
178.9
11.9%
5.0%
7.2%
50.00

3,789
207.2
12.4%
7.5%
10.3%
55.00

4,915
268.8
15.1%
4.6%
6.2%
55.00

17.0

17.0

18.0

18.0

18.0

18.0

17.0

17.8

18.0

18.2

18.2

18.2

18.2

16.4

5,000

85.00

Source: Strategy Advisors. Based on Company Data.

19

JINUSHI | 3252 (TSE Prime)

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20