Toubujyuhan Co.,Ltd.

Business Details

Comprising two pillars: the Proprietary Real Estate Sales Business, which purchases used detached houses, renovates them, and sells them, and the Real Estate Sales Brokerage Business for properties owned by others, based in the Chugoku and Kyushu regions. This remains the core business, accounting for approximately 95.6% of consolidated net sales in FY2026 (ending May 2026). Although net sales decreased 6.0% year on year, segment profit increased 5.0% year on year owing to an improvement in the cost of sales ratio.

Recent Overview

Net sales decreased, but profit increased on improved cost ratio, and brokerage transactions also expanded.

In the Real Estate Sales Business for FY2026 (ending May 2026), the number of proprietary properties sold decreased by 38 units year on year to 422, resulting in net sales of ¥7,405 million (down 6.0% year on year). Meanwhile, the average selling price rose ¥236 thousand year on year to ¥16,418 thousand, and together with an improvement in the cost of sales ratio, this contributed to segment profit of ¥1,050 million (up 5.0% year on year). In the Real Estate Sales Brokerage Business, the number of brokerage transactions increased, centered on lower-priced properties, and brokerage commissions exceeded the prior fiscal year's level. Contracted sales of used detached houses declined 4.8% year on year in the Chugoku region while increasing 2.2% in the Kyushu region, showing diverging regional trends.

Key Products

Growth Drivers

• Continuation of the increasing trend in contracted sales of used detached houses in the Kyushu region (up 2.2% year on year according to a Nishi-Nihon REINS survey)
• A shift in demand toward the used housing market driven by a decline in new housing starts (FY2025 levels fell below the post-Lehman Shock historical low)
• Expansion of brokerage commission income driven by an increase in real estate sales brokerage transactions, centered on lower-priced properties
• Refinement of the business model centered on improving purchase-and-resale profit margins and inventory turnover (Third Medium-Term Management Plan)
• Improved real estate information-gathering capability through enhanced marketing via social media operations
• Expected increase in units sold in other regions toward FY2027 (ending May 2027) (full-year forecast of 450 units, up 6.6% year on year)

Risks

• Risk of buyers holding back purchases due to increased mortgage burden from rising interest rates (particularly the combined impact of soaring real estate prices and rising interest rates in the Fukuoka metropolitan area)
• Risk of deteriorating cost of sales ratio due to rising renovation costs and labor costs (operating profit for FY2027 (ending May 2027) is forecast to decrease 3.0% year on year)
• Risk of a decline in units sold due to soaring real estate prices in the Fukuoka metropolitan area (the impact of buyers holding back purchases has become apparent)
• Risk of increased inventory costs due to rising purchase prices (real estate for sale in process increased by ¥531 million year on year)
• Risk of market contraction due to a decline in contracted sales of used detached houses in the Chugoku region (down 4.8% year on year)
• Intensifying competition and difficulty in procurement in the purchase-and-resale market due to an increase in competitors