ENVALITH
株式会社東武住販 logo

Toubujyuhan Co.,Ltd.

3297・Standard Market・Real Estate

Official website
株式会社東武住販 logo
Toubujyuhan Co.,Ltd.3297

Business

Toubu Jyuhan Co., Ltd. was established in 1984 and operates 19 stores across 17 municipalities in Yamaguchi, Fukuoka, Hiroshima, Oita, Saga, and Kumamoto Prefectures as a community-based real estate company. Guided by its management philosophy of "making the most of what exists," the company's core business is the Proprietary Real Estate Sales Business, in which it purchases used detached houses aged 20 to 40 years, refreshes and renovates them, and resells them. It also engages in the Real Estate Sales Brokerage Business, Real Estate Leasing Brokerage Business, Real Estate Management Contracting Business, Insurance Agency Business, and the Other Business (Nursing Care & Welfare Business). Its primary customers are first-time homebuyers in their 20s to 30s with annual incomes of around ¥3 million, and its average sales price per unit is approximately ¥16,182 thousand. The company holds the No. 3 position nationwide in the buy-and-resell business for used detached houses.

Business Model

In the Proprietary Real Estate Sales Business, which accounts for approximately 94.8% of net sales, the core earnings driver is a purchase-renovate-resell model in which used homes are acquired, renovated to add value, and then sold. Part of the acquisition funding is covered by financial institution borrowings, and inventory turnover management is a key factor determining profit margins. In addition, multiple fee income streams—including sales brokerage commissions (approximately 5.2% of net sales), fire insurance agency commissions, and leasing management fees—supplement earnings stability. As of FY2025 (ended May 2025), the equity ratio stood at 72.1%, indicating a high level of financial soundness.

Company Strengths

According to market data from the Reform Industry Newspaper, the company ranks 19th overall in the purchase-and-resale business, but ranks 3rd nationwide when limited to its core detached-house business. In FY2025 (ending May 2025), the number of proprietary real estate sales rose to 460 units (up 47 units year on year), with the average unit sales price increasing to ¥16,182 thousand (up ¥255 thousand year on year), as both volume and unit price increased, and Real Estate Sales Business revenue reached ¥7,874 million (up 13.4% year on year).

The equity ratio at the end of FY2025 (ending May 2025) improved to 72.1% (from 66.6% at the previous fiscal year-end). Total net assets stood at ¥4,428 million, and the company achieved a substantial reduction in interest-bearing debt (short-term borrowings down ¥438 million, long-term borrowings down ¥229 million) while operating cash flow improved significantly to ¥1,051 million. The company maintains financial discipline, setting a management target of keeping the equity ratio at 60% or above.

Following the July 2024 increase in the cap on brokerage commissions for low-priced used homes, the number of contracted transactions for used detached houses rose 14.9% year on year in the Chugoku region and 12.5% year on year in the Kyushu region (according to a survey by Nishi-Nihon REINS). The company's Real Estate Sales Brokerage Business revenue increased substantially to ¥408 million (up 19.0% year on year), directly benefiting from the legal revision.

ENVALITH's Perspective

In FY2026 (ending May 2026), despite a decline of 38 units in the number of properties sold (460 units → 422 units), a significant improvement in the cost-of-sales ratio (73.3% → 69.4%) enabled double-digit growth in operating income, ordinary income, and net income alike. It is commendable that ordinary income of ¥589 million exceeded the final-year target of the Third Medium-Term Management Plan (ordinary income of ¥450 million) by over 31%. However, the forecast for FY2027 (ending May 2027) anticipates a shift to declining profit, with operating income of ¥570 million (down 3.0% year on year), and increases in renovation costs and personnel expenses could hinder the continuation of the cost-ratio improvement.

As an external factor, in the Fukuoka metropolitan area, the surge in real estate prices in the city center has spread to the suburbs, and combined with rising loan interest rates, a decline in the number of properties sold due to buyer restraint is expected. The forecast for the FY2027 (ending May 2027) average unit price for Proprietary Real Estate Sales is ¥15.96 million (down 2.8% year on year), anticipating a decline in unit price, with the strategy of covering this through an increase in unit numbers in other regions (full-year 450 units, up 6.6% year on year). It will be necessary to closely monitor the impact of changes in the regional mix on profit margins. The Bank of Japan's continued policy of raising interest rates also poses a risk of pushing up financial costs through increased interest expense (¥8 million in FY2026 (ending May 2026)).

Cash flow from operating activities in FY2026 (ending May 2026) worsened significantly to ¥(25) million, down from ¥1,051 million in the previous fiscal year. The main causes were an increase in inventory of ¥374 million (real estate for sale in process surged from ¥941 million at the end of the previous fiscal year to ¥1,473 million) and income tax payments of ¥216 million. Cash and cash equivalents stood at ¥806 million at fiscal year-end, a level that can nearly offset interest-bearing debt, but the risk of deteriorating cash flow if the stagnation of work-in-process inventory becomes prolonged warrants continued monitoring. The forecast for the number of properties purchased in FY2027 (ending May 2027) of 488 units (up 8.9% year on year) could further accelerate the build-up of inventory.

Growth Strategy

Following the completion of the Third Medium-Term Management Plan, the company is strengthening its sales structure and promoting expansion into other regions in preparation for the transition to the Next Stage

A core initiative of the Third Medium-Term Management Plan (formulated in July 2024). In FY2026 (ending March 2026)... [Note: fiscal year end month adjusted below]. In FY2026 (ending May 2026), the cost of sales ratio improved to 69.4% (from 73.3% in the previous period), expanding operating profit in the Real Estate Sales Business to ¥1,050 million (up 5.0% year on year). For FY2027 (ending May 2027), the company plans 488 property acquisitions (up 8.9% year on year), with maintaining inventory turnover as a key challenge.

A strategy to expand brokerage fee income by increasing the number of brokerage transactions, primarily for lower-priced properties. In FY2026 (ending May 2026), brokerage fee income exceeded the previous period's level. The company plans to continue improving profitability through enhanced brokerage activity in FY2027 (ending May 2027) as well.

Strengthening the development of sales personnel through a review of the compensation system, improvements to the goal management system, and restructuring of the training system. In FY2026 (ending May 2026), salaries and allowances increased to ¥621 million (from ¥586 million in the previous period), reflecting ongoing investment in personnel. This is already factored in as a cost increase factor for FY2027 (ending May 2027), alongside renovation costs.

A strategy to offset overall sales volume against the risk of buyer hesitation caused by soaring real estate prices and rising loan interest rates in the Fukuoka metropolitan area, by increasing sales volume in other regions. The company plans 450 units for the full year FY2027 (ending May 2027) (up 6.6% year on year). The average unit price is expected to decrease 2.8% year on year to ¥15.96 million.

Aiming to curb SG&A expenses and improve sales productivity through improved utilization of sales support systems and greater efficiency and labor-saving in the sales back office. SG&A expenses increased to ¥1,780 million in FY2026 (ending May 2026) (from ¥1,725 million in the previous period), making the realization of efficiency gains a key challenge for the next period.

Last updated: July 17, 2026