ENVALITH
香陵住販株式会社 logo

Koryojyuhan Co., Ltd.

3495・Standard Market・Real Estate

Official website
香陵住販株式会社 logo
Koryojyuhan Co., Ltd.3495

Business

Koryo Jyuhan Co., Ltd. was founded in 1981 and is headquartered in Mito City, Ibaraki Prefecture, operating as a regionally focused comprehensive real estate company. The company operates 20 stores in total—18 in Ibaraki Prefecture and one each in Chiba Prefecture and Tokyo—running its business as a two-company group together with its subsidiary Just Service Co., Ltd. Its two core segments are the Real Estate Distribution Business, which handles real estate sales, leasing brokerage, and sales, and the Real Estate Management Business, which handles rental management, the Coin Parking Business, and the Solar Power Sales Business. The company's strength lies in its end-to-end model, through which it plans, sells, and receives management contracts for its in-house planned investment rental real estate, the Rega Bene Series (in-house planned investment real estate). It listed on the JASDAQ market of the Tokyo Stock Exchange in 2018.

Business Model

The company handles everything from land acquisition, construction, tenant recruitment, and sales to investors for its in-house planned investment real estate, the Rega Bene Series (in-house planned investment real estate), and after sales, it takes on management operations, continuously building up the number of units under lease management (24,481 units at the end of FY2025 (ending September 2025)). By combining flow revenue (real estate sales of ¥6,818 million) with stock revenue (Management Business Revenue (Property Management) of ¥1,545 million and Leasing Business Revenue (Company-owned & Leased Properties) of ¥587 million), the structure achieves both revenue stability and growth potential.

Company Strengths

The in-house planned investment real estate "Rega Bene" Series sold 12 buildings (142 units) in FY2025 (ending September 2025), securing a pipeline of 18 buildings (203 units) under construction. Management contracts obtained after sales have accumulated leasing management units to 24,481 units as of the previous fiscal year-end, forming a stable recurring revenue base.

Revenue grew for five consecutive fiscal periods, from ¥7,799 million in FY2021 (ending September 2021) to ¥11,533 million in FY2025 (ending September 2025). ROE stood at 17.7% (FY2025 results), substantially exceeding the company's own target of 10% or higher, while maintaining financial soundness with an equity ratio of 34.7% and achieving high capital efficiency.

The company operates a total of 20 stores, centered on 18 stores within Ibaraki Prefecture, and through regionally rooted sales activities achieves information gathering on land for product development, expansion in the number of brokerage transactions, and improved occupancy rates for managed properties. Since its founding in 1981, over 40 years of community-based sales operations have underpinned its competitive advantage in property information networks.

ENVALITH's Perspective

In the first half of FY2026 (ending March 2026), sales rose 11.1% year-on-year to ¥7,772 million, a strong performance. However, operating profit fell 4.3% to ¥721 million, and interim net profit declined 14.3% to ¥682 million. The main causes were a rise in the cost-of-sales ratio (from 67.5% to 68.5%) combined with SG&A expenses swelling 13.5% year-on-year to ¥1,725 million. Net profit was also pushed down by the shrinkage of gain on sale of fixed assets (solar power generation facilities) from ¥411 million in the same period of the prior year to ¥256 million in the current period. Achieving the full-year forecast (operating profit of ¥1,203 million, up 12.3% year-on-year) will require a substantial profit recovery in the second half, and given the progress rate of 60.0%, it is necessary to confirm the second-half-weighted structure of earnings.

In the current interim period, inventory (real estate for sale) decreased by ¥2,153 million, causing operating cash flow to expand to ¥3,257 million, more than double the ¥1,483 million recorded in the same period of the prior year. Cash and cash equivalents accumulated to a robust level of ¥3,045 million. On the other hand, the balance of real estate for sale remains high at ¥4,298 million, and real estate for sale in process stands at ¥3,705 million, meaning that purchasing and development trends from the second half onward will determine sales in subsequent periods. As external factors, expectations of higher mortgage rates going forward and surging material prices are affecting both acquisition costs and consumer sentiment, making continuous monitoring of inventory turnover important.

The equity ratio improved to 40.0%, and net assets per share also rose to ¥2,461.54. The interim dividend was set at ¥31, up ¥4 year-on-year, and the full-year dividend forecast of ¥61 (an increase from ¥55 in the prior fiscal year) is maintained. On the other hand, the total of short-term and long-term borrowings (current and fixed combined) remains high at ¥5,275 million, and as an external factor, the increase in interest expense amid rising interest rates (from ¥22 million in the same period of the prior year to ¥37 million in the current period) is beginning to weigh on ordinary profit. While the direction of financial improvement can be evaluated positively, continued attention is needed regarding the absolute level of interest-bearing debt and changes in the interest rate environment.

Growth Strategy

Toward the KORYO2027 target (net sales of ¥13,000 million or more), the company is advancing the expansion of the Rega Bene Series along with fund business and construction contracting.

The company continues to supply properties centered on the Rega Bene Series (in-house planned investment real estate), expanding into areas such as Kashiwa City, Chiba Prefecture. In the first half of FY2026 (ending March 2026), 9 properties were sold, and the sale of "Rega Bene Kashiwanoha I," which accounts for over 10% of net sales, was completed in February 2026. The company continues to build up management contracts after sale, accumulating 24,984 units under leasing management.

The company is promoting product development for real estate funds utilizing the anonymous partnership (tokumei kumiai) scheme. In the current interim period, it received ¥330 million in capital contributions from anonymous partnership investors, and is building a system linking fundraising with product development. The aim is to diversify revenue sources and improve asset turnover.

The company is focusing on order-taking activities for rental property construction contracting, aiming to build a new pillar of revenue. This is positioned as a key initiative of the medium-term management plan "KORYO2027," and the company seeks to strengthen its integrated end-to-end service through coordination with the management business.

The company aims to improve occupancy rates while maintaining 1,587 operated coin parking units. In the current interim period, the occupancy rate exceeded plan, achieving results significantly above the previous year's performance. The company continues to maximize revenue by leveraging its management base of 9,792 parking units.

Last updated: July 17, 2026