AZUMA HOUSE Co., Ltd.
3293・Standard Market・Real Estate
Real Estate & Construction Business
Azuma House's core segment. Handles subdivided land and custom-built housing sales and construction.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (9-month cumulative) | ¥4,066 million | – | — |
| Segment profit (loss) (9-month cumulative) | -¥35 million | – | ↓ |
| Revenue (full year, prior-year actual) | ¥7,824 million | – | — |
| Segment profit (full year, prior-year actual) | ¥317 million | – | — |
| Order backlog (end of prior fiscal year) | ¥2,178 million | – | ↓ |
Business Details
With Wakayama Prefecture and Osaka Prefecture as its primary market areas, the segment's mainstay operations are subdivided land sales, ready-built housing sales, build-to-order housing sales, and custom-built construction. It operates a one-stop system that also handles renovation work, real estate brokerage, non-life insurance agency business, and loan administrative agency services. The company operates 3 branches in Wakayama City and one branch each in Iwade City and Osaka Sayama City, running community-focused store operations. It is focusing on proposing high-value-added housing such as IoT-enabled smart houses, ZEH-spec housing, and long-life quality housing, and is promoting new order acquisition centered on capturing child-rearing households.
Recent Overview
A correction to the earnings report revealed revised cash flow figures and a change in the estimate for asset retirement obligations.
Under a correction disclosure dated June 25, 2026, operating cash flow for FY2026 (ending March 2026) was revised from ¥1,357 million to ¥1,393 million, and investing cash flow was revised from -¥1,043 million to -¥1,080 million. The main causes were corrections to the decrease in inventory assets (from ¥261 million to ¥297 million) and expenditures for acquisition of property, plant and equipment (from ¥895 million to ¥931 million). In addition, the estimate for asset retirement obligations recorded as restoration obligations associated with real estate lease contracts was revised in light of rising prices and other factors, resulting in an increase of ¥47,598 thousand in the asset retirement obligation balance. The impact on the income statement is described as minor.
Key Products
Growth Drivers
- Increase in subdivided land sales and renovation work (the primary driver of revenue growth in the previous fiscal year)
- Demand for high-value-added housing such as IoT-enabled smart houses, ZEH-spec housing, and long-life quality housing
- Demand for home acquisition among child-rearing households, supported by housing acquisition support measures
- Expansion of coverage through community-focused multi-store development in Wakayama City, Iwade City, and Osaka Sayama City
- Efforts to improve profit margins through cost review and high-value-added proposals
Risks
- Risk of construction schedule delays and shifted sales timing due to delays in permits and approvals
- Risk of rising costs due to soaring construction material and land development costs (a change in the estimate for asset retirement obligations occurred against a backdrop of rising prices, suggesting continued cost-increase pressure)
- Decline in consumer sentiment due to rising mortgage interest rates associated with policy rate hikes
- Decline in housing purchase intent due to falling real wages
- Risk of future revenue decline due to a decrease in order backlog (¥2,178 million at the end of the previous fiscal year, 76.6% year-on-year)
- Inventory risk: risk of delayed inventory turnover associated with an increase in real estate for sale (¥2,999 million at the end of Q3)
- Risk of changes in estimates for asset retirement obligations: continued price inflation could lead to further increases in restoration costs
Last updated: June 29, 2026