MBK Co.,Ltd.
3121・Standard Market・Services
Business
Merchant Bankers, Inc. traces its roots to a textile manufacturer founded in 1947 and changed to its current company name in 2009; it is an independent investment company listed on the TSE Standard Market. Its core business centers on domestic and overseas real estate investment (capital gains from leasing and sales), alongside money lending secured by stocks, real estate, and accounts receivable, as well as project investment in the renewable energy sector. The company has five consolidated subsidiaries (three domestic, two overseas) and one equity-method affiliate (Life Innovation Holdings Co., Ltd.), and operates as a single segment: the merchant banking business. It invests not only within Japan but also in overseas companies, including those in China.
Business Model
The main revenue sources are capital gains from the sale of held rental properties and rental income. In addition, the company accumulates interest income from its money-lending business, which is secured by shares, real estate, and accounts receivable, as well as investment returns from renewable energy projects. The target yield for real estate investment is a net 5%. Fundraising is centered on borrowings from financial institutions, while also utilizing equity finance such as share issuance through third-party allotments. The company has set financial soundness management policies targeting a current ratio above 200% and an equity ratio above 40% as management indicators.
Company Strengths
In FY2025 (ending October 2025), the company sold 6 rental properties, securing net sales of ¥3,383 million and operating cash flow of ¥2,357 million. Through the real estate sales, it simultaneously achieved a reduction in interest-bearing debt (long-term borrowings decreased by ¥1,335 million) and maintained on-hand liquidity (cash and cash equivalents of ¥1,445 million).
Through a third-party allotment capital increase (capital stock and capital reserve each increased by ¥383 million) and reduction of interest-bearing debt, the equity ratio improved from 25.5% at the end of the previous fiscal year to 30.1% at the end of the current fiscal year. Total net assets increased to ¥4,652 million, reflecting steady improvement in financial soundness.
The balance of operating loans expanded roughly ninefold, from ¥69 million at the end of the previous fiscal year to ¥611 million at the end of the first quarter of FY2026 (ending March 2026). The money lending business, which is secured by stocks, real estate, and accounts receivable, is expected to offer higher profitability than real estate investment, contributing to the diversification and stabilization of revenue sources.
ENVALITH's Perspective
Performance Trend
Revenue expanded to the ¥4,000 million range in FY2023 and FY2024 before falling back to ¥3,383 million in FY2025. In the interim period of FY2026 (ending October 2026), revenue remained subdued at ¥1,628 million (down 2.2% year on year). On the other hand, reductions in cost of sales and SG&A expenses improved the gross profit margin, and operating profit increased substantially to ¥253 million (up 93.4% year on year). However, as an external factor, a valuation loss on crypto assets of ¥94 million due to the decline in Bitcoin prices was recorded as non-operating expenses, limiting ordinary profit to ¥24 million. In terms of the external environment, rising real estate prices and interest rate increases stemming from the Bank of Japan's rate hikes are affecting the business environment. Interim net income attributable to owners of the parent turned positive at ¥29 million, versus a net loss of ¥1 million in the same period of the previous year.
Growth Strategy
Shifting cash generated from real estate sales toward high-return investments in M&A, AI, and money lending
The company continues to sell rental real estate properties, reducing tangible fixed assets to ¥11,720 million at the end of the current interim period (down ¥988 million from the end of the previous fiscal year). It continues to execute its strategy of reallocating sale proceeds into higher-return investments such as M&A, money lending, and renewable energy.
The balance of operating loans receivable expanded approximately 8.7-fold, from ¥69 million at the end of the previous fiscal year to ¥601 million at the end of the current interim period. The company is diversifying earnings away from reliance on real estate while working to accumulate stable interest income.
At the Board of Directors meeting on May 18, 2026, a resolution was passed to increase the total amount for treasury stock repurchases from ¥500 million to ¥820 million. The upper limit on the number of shares to be repurchased was also expanded from 2,500,000 shares to 4,100,000 shares (13.37% of shares issued). The use of the funds for M&A acquisitions was explicitly stated.
The company plans to acquire a 21.0% stake in TIGEREYE (capital of ¥214 million, founded in 2023), a company with AI control technologies such as facial recognition and interactive avatars, in July 2026. Through this equity participation in an AI company that has a collaborative framework with Kokuyo, KDDI, SoftBank Robotics, and others, the company aims to capture growth in the AI sector.
The company continues to seek out renewable energy and M&A opportunities that are expected to offer higher profitability than real estate investment. In parallel, it is also advancing the cultivation of AI startups in Estonia through its NASDAQ BALTIC-listed subsidiary, Estonian Japan Trading Company AS.
Last updated: July 17, 2026