ENVALITH
株式会社イントランス logo

INTRANCE CO.,LTD.

3237・Growth Market・Real Estate

Official website
株式会社イントランス logo
INTRANCE CO.,LTD.3237

Business

INTRANCE CO., LTD. is a company listed on the TSE Growth Market, founded in 1998. It has built a stable earnings base through its founding-era Real Estate Business (real estate revitalization) and Property Management Business, and since 2019 has been actively expanding into the Hotel Operation Business to capture inbound demand. The company handles hotel operation via Master Lease-Based Lodging Facility Operation and Management Contract-Based Operation Outsourcing, as well as operation outsourcing/consulting and Hotel Investment Fund Planning & Formation. Its main customers are domestic and overseas real estate investors, business corporations, and inbound tourists visiting Japan. The group consists of 7 consolidated subsidiaries and 1 equity-method affiliate, with "Urban Apartment Hotel Development & Operation" and "Regional Revitalization Hotel Investment & Operation" positioned as core strategies.

Business Model

In the real estate business, the company builds up stock-type recurring revenue through value-up renovation and resale of used properties, as well as management contracting (property management). In the hotel operations business, it secures operating rights through master leases and management contracts, monetizing inbound accommodation demand. As a synergy between the two businesses, it also engages in the real estate sale, development, and resale of lodging facilities, positioning the entire inbound cycle (pre-trip, during-trip, and post-trip) as its business domain.

Company Strengths

Since its founding in 1998, the company has built a system enabling it to complete a full range of real estate-related total services—brokerage, leasing management, property management, asset management, sales brokerage, and development/sales—within its own group. Real estate segment sales for FY2026 (ending March 2026) expanded to ¥379 million (up 55.4% year on year), with recurring stock-type revenue from property management forming a stable earnings base.

The company holds multiple government licenses, including a real estate brokerage license (license from the Minister of Land, Infrastructure, Transport and Tourism), Type II Financial Instruments Business registration, investment advisory and agency business registration, rental housing management business registration, and travel service arrangement business registration. It has the legal foundation to handle everything end-to-end, from hotel operation outsourcing to fund formation and investment advisory, creating an entry barrier that is difficult for competitors to replicate in a short period.

In February 2026, the company raised a total of ¥1,303 million, comprising ¥1,297 million in convertible bond-type bonds with stock acquisition rights and ¥6 million in stock acquisition rights. Cash and deposits at the end of FY2026 (ending March 2026) stood at ¥1,505 million, securing investment funds for acquiring urban-type apartment hotel operating rights and expanding the real estate business. The company has a track record of achieving agile fundraising even during a sustained period of losses.

ENVALITH's Perspective

In FY2026 (ending March 2026), net loss attributable to owners of the parent expanded to ¥501 million from ¥432 million in the prior period, marking four consecutive years of losses. The equity ratio declined to 9.4% (from 66.5% in the prior period), and the accumulated deficit in retained earnings reached ¥2,440 million. If conversion of convertible bonds with subscription rights to shares (¥1,309 million) does not progress, the financial burden will persist. The company projects a return to profitability in FY2027 (ending March 2026) (net income forecast of ¥34 million), but given that the company has revised its earnings downward for four consecutive periods, the feasibility of this forecast must be carefully assessed.

Revenue in the hotel operations business reached ¥695 million (up 19.5% year on year), achieving revenue growth, but segment loss was ¥62 million (versus ¥61 million in the prior period), remaining roughly flat and continuing to post a loss. The company has not yet secured operating rights for new resort hotels or ryokan, and fixed-cost absorption through scale expansion has not progressed. As an external factor, the number of inbound visitors to Japan (excluding those from China) has been trending favorably, and the market environment is favorable, but the pace at which the company itself secures operating rights remains a constraint on earnings recovery.

Segment profit in the real estate business remained positive at ¥38 million (a slight decline from ¥41 million in the prior period), but the scale is insufficient to cover companywide selling, general and administrative expenses (¥1,176 million) and non-operating expenses (including a derivative valuation loss of ¥41 million and interest expense of ¥19 million, among others). The adjustment amount for head office expenses and other items (a loss of ¥370 million) weighs heavily, creating a structure in which improvements in segment earnings are not readily reflected in companywide profit and loss. Achieving the FY2027 (ending March 2026) revenue forecast of ¥3,344 million (up 211.5% year on year) will depend significantly on the success of new businesses and M&A.

Growth Strategy

Real Estate Business revenue stabilization and Hotel Operation Business scale expansion / turnaround to profitability as the two pillars

While aiming to increase Property Management revenue, the company is shifting human resources toward the resale of lodging facilities and the development and sale of detached-house lodging facilities. Through the acquisition of new real estate personnel, it seeks to accumulate short-to-medium-term, high-profit projects and expand the scale of the group's only profitable segment. In FY2026 (ending March 2026), revenue of ¥379 million and segment profit of ¥38 million were recorded, but some projects have experienced delays.

Centered on Intrance Hotels and Resorts, the company is promoting the acquisition of operating rights for urban apartment hotels and increasing the number of operation outsourcing and consulting deals. By acquiring personnel well-versed in hotel operation and development, it aims to expand the scale of the business and maximize profitability. In FY2026 (ending March 2026), the company failed to secure operating rights for new resort hotels and ryokan, and a segment loss of ¥62 million continued.

The company aims to expand group earnings by investing, through M&A, joint ventures, and business alliances, in businesses expected to generate synergies with its existing Real Estate Business and Hotel Operation Business. This is a key assumption underlying the significant revenue growth forecast for FY2027 (ending March 2027) (revenue of ¥3,344 million), but the company itself acknowledges that the success or failure of new businesses could cause the earnings forecast to fluctuate significantly.

The company aims to promote the conversion and exercise of the convertible bond-type bonds with stock acquisition rights (¥1,309 million) issued in February 2026 and the stock acquisition rights (10th series, equivalent to 21,428,500 shares of common stock), thereby strengthening shareholders' equity and cash position. If conversion and exercise do not progress, resolving the material doubt about going concern will be difficult, making a recovery in performance and a rise in the share price a precondition.

By resolution of the board of directors dated April 8, 2026, the consolidated subsidiary Yingchuang (Shanghai) Business Consulting Co., Ltd. will be dissolved and liquidated, reducing the fixed cost burden. Going forward, the policy is to continue the Domestic Inbound Customer Referral Business through partnerships with external companies. This is expected to reduce the segment loss (¥23 million) in Other Businesses.

Last updated: July 19, 2026