Likely to achieve profit growth by passing on higher costs to wealthy customers

研报英文原文证据摘录

Likely to achieve profit growth by passing on higher costs to wealthy customers

% for FY3/29. We revise up our OP estimate for the membership business

to reflect the penetration of price hikes for hotel memberships and greater-

than-expected buyback of existing memberships in FY3/26. On the other

hand, we lower our assumed real estate profit margin at the time of new hotel

openings in light of rising construction material costs mainly stemming from

the situation in Iran. While not factored into our forecasts, we see significant

potential for profit growth on the back of hikes to annual membership fees for

Himedic and hotel memberships.

WATCH: Membership business short term, medical business longer

termAnalyst Yuki Kuwana

+81 3 6202 8597 yuki.kuwana@mizuho-sc.com Our short-term focus is on Resorttrust’s 1Q FY3/27 earnings. The company

Senior Analyst Yoshihiro Hashimoto bought back memberships for popular hotels such as Tokyo Baycourt in+81 3 6202 8157 yoshihiro.hashimoto@mizuho-

sc.com 4Q FY3/26, and we expect 1Q FY3/27 OP to rise 28% YoY, assuming

the company resells some of those memberships during the quarter. Our

Click here for ESG on medium/long-term focus is on profit contributions from new fields under the

our entire coverage medical business, which the company is currently investing in.

MEASURE: Applying a fair-value PBR of 2.6x

Our price objective is based on a PBR of 2.6x our end-FY3/27 BPS estimate,

revised down from 2.8x previously to reflect the decline in valuations for

service-related stocks and the rolling forward of our valuation base year from

FY3/26 to FY3/27 as we are now in a new fiscal year.

Consolidated results and forecasts Share Price: ¥1,687.5 (10 Jun) 52wks: H ¥2,074 L ¥1,590.5

Term Sales YoY OP YoY RP YoY NP YoY EPS PER EV/EBITDA