Kanachu's Q1 Operating Profit Rises 11% as a Fare Revision Lifts the Bus Business

One segment carries the quarter

Kanagawa Chuo Kotsu Co., Ltd. (TSE: 9081) — the bus operator known as Kanachu, whose network covers central and western Kanagawa Prefecture — published consolidated results for the three months to June 30, 2026 on July 27, 2026 under Japanese GAAP. Net sales rose 2.0% to ¥32,145 million, operating profit 11.4% to ¥2,907 million, ordinary profit 10.6% to ¥3,012 million and net profit 11.6% to ¥1,706 million, for earnings per share of ¥139.05 against ¥124.57.

The shape of the quarter is that profit grew five times faster than revenue, and one segment explains most of it. Passenger transport revenue rose 5.1% to ¥15,550 million and its profit 26.1% to ¥1,416 million. The company attributes the route-bus improvement to a fare revision implemented in April, and there was more traffic besides. Charter-bus revenue rose on higher unit prices, taxi revenue per vehicle increased, and the group expanded its AI-operated on-demand bus trial in the Fujisawa area while adding smartphone support for its "Kanachan Pass" subscription ticket in June.

Real estate falls back, cars hold, other businesses grow

Real estate was the weak spot: revenue fell 11.3% to ¥1,629 million and profit 22.5% to ¥521 million. Rental income actually grew, helped by the acquisition of Mizushima Shoji, but the condominium business sold fewer units than a year earlier and that swing dominated the segment.

Automobile sales saw revenue slip 1.1% to ¥9,840 million while profit rose 7.1% to ¥575 million — a better mix rather than a bigger book. Sales of Mitsubishi Fuso large trucks increased; imported-car sales decreased. Other businesses grew revenue 5.6% to ¥7,476 million and profit 23.8% to ¥447 million: the Doutor outlet at Times Station Kawasaki contributed for a full period against a partial one last year, while IT services fell back against a strong prior-year comparison and the hotel business declined after the closure of Tokoen.

A stronger balance sheet and guidance that points the other way

Total assets rose 1.2% from the March year-end to ¥187,697 million and net assets 4.8% to ¥72,976 million, lifting the equity ratio to 35.5% from 34.2%.

Guidance is unchanged, and it points in the opposite direction to the quarter just reported: for the full year, net sales of ¥129,700 million (+2.3%), operating profit of ¥6,200 million (−8.5%), ordinary profit of ¥5,630 million (−15.5%) and net profit of ¥3,730 million (+3.0%), for earnings per share of ¥303.97. So a quarter that grew operating profit 11.4% sits inside a year guided to shrink it 8.5% — the company has banked 46.9% of the full-year operating-profit target in the first quarter, which tells you the remaining nine months are expected to be materially weaker than the same months last year. The net line is guided up while the profit lines below revenue are guided down, a combination that normally reflects items below the operating level rather than trading. The annual dividend is held at ¥90.00, split ¥45.00 interim and ¥45.00 final.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.