Ichigo FY27/2 H1 slides: mixed results, record profit forecast

On October 14, 2026, Ichigo Inc. (TSE:2337) announced its first-half fiscal year 2027/2 results, showcasing a mixed performance amid a strategic focus on generating cash flow over accounting earnings. Business profit increased by 3% year-over-year, while cash EPS rose by 17%, whereas net income decreased by 2%. Ichigo's shares closed at $386, down 1.03%, hovering near the lower range of their 52-week trading band of $347 to $529.

Despite this, management argued the stock remains undervalued relative to its true asset worth. With a market cap of $964.81 million and a P/E ratio of 9.29, Ichigo trades at a notable discount to its intrinsic value according to analysts. The company's profitability model relies on stock earnings like rental income and power generation, which significantly outpace fixed costs.

In the first half, business profit hit JPY 15.5 billion, marking 45.6% progress toward the full-year target of JPY 34 billion. Cash EPS climbed 17% year-over-year to JPY 30.75, surpassing traditional EPS, which grew 4% to JPY 21.47. This disparity is attributed to Ichigo's strategic depreciation strategies to bolster cash flow for future growth and shareholder returns.

Management reiterated a record business profit forecast for the full year, anticipating JPY 34 billion, with net income expected to climb to JPY 18 billion (8% YoY growth), EPS to JPY 45.13 (13% YoY growth), and cash net income to JPY 24 billion (30% YoY growth). Target return metrics focus on ROE of 15.0% and cash ROE of 20.0%.

Segment performance highlights include Sustainable Real Estate (SRE) revenue projected at JPY 18.5 billion, more than doubling prior results, and Ichigo Owners reaching JPY 7.6 billion. The Hotel segment faced a 57% drop, attributable to lower Chinese inbound tourism and higher operational costs.