26/12 H1 results: Working to diversify into areas peripheral to real estate: Solid real estate market, proactive about M&A too

Research evidence excerpt

26/12 H1 results: Working to diversify into areas peripheral to real estate: Solid real estate market, proactive about M&A too

Global Markets Research

28 July 2026Hulic

3003.T 3003 JP / EQUITY: JAPAN HOUSING & REAL ESTATE

Rating26/12 H1 results: Working to diversify into areas

Remains Neutralperipheral to real estate

Target price

Increased from 1,870 JPY 1,890Solid real estate market, proactive about M&A too

Closing price JPY 1,835.0We nudge up earnings forecasts and target price, retain Neutral rating 27 July 2026

Hulic released 26/12 H1 results at 11:30 JST on 28 July, posting operating profits of

Implied upside +3.0%¥80.3bn (up 7% y-y), ¥1.8bn higher than our forecast, as although it incurred additional

costs of ¥5.1bn based on the share price of consolidated subsidiary Riso Kyoiku Group

[4714], its real estate leasing and sales businesses performed well. In view of this, we

raise our forecasts for full-year 26/12 onwards, primarily for real estate operations, nudge

Relative performance chartup our target price, and retain our Neutral rating. However, we continue to calculate our

target price using our 27/12 NAV per share forecast, and the upward revision to our target

price is to reflect changes to our earnings forecasts.

Investing aggressively, including via M&A

While real estate remains at its core, Hulic is aiming for longer-term profit growth while

also preparing for downturns in the real estate market by investing in new businesses and

peripheral areas likely to see synergies with real estate. In 26/12 H1, the company

invested a total of ¥400bn in real estate in Japan and overseas, and in new businesses,

including via M&A. It is also on track to invest around ¥120bn in Japanese real estate from

Q3 onwards.