A-tie Co.,Ltd.
369A・Growth Market・Services
A-tie Co.,Ltd.
369A・Growth Market・Services
Business
Etai Co., Ltd. operates under its corporate philosophy of "supporting the emotional connections between people and enriching the hearts of society," running a Temple Consulting Business (single segment) centered on Eternal Memorial Grave Recruitment Agency Services for eternal memorial graves offered by temples. Its main customers are both partner temples (BtoB) and middle-aged to older individuals considering purchasing eternal memorial graves (BtoC). The company has built a business model that simultaneously resolves the challenges faced by temples struggling with a lack of successors and declining parishioner numbers, as well as those faced by users grappling with issues in cemetery maintenance and management. The company listed on the Tokyo Stock Exchange Growth Market in June 2025. As of the end of FY2025 (ending August 2025), the number of temples with operating memorial grounds reached 92, and the cumulative number of contracted clients reached 32,726.
Business Model
Enters into long-term (10-20 year) recruitment agency contracts with temples, providing a one-stop service covering the planning, construction, advertising, on-site guidance, and contract administration of eternal memorial graves. By having Eitai bear the full cost, the company secures a high fee rate. Revenue is recognized as a recruitment agency fee, calculated as the contract value from grave users less the offering (shino-ryo) paid to the temple. In FY2025 (ending August 2025), the contract value was ¥4,058 million and net sales (fees) were ¥2,929 million, resulting in a fee rate of approximately 72%.
Company Strengths
Concluding contracts with temples requires navigating the unanimous decision-making process unique to religious corporations, as well as thorough familiarity with cemetery laws and regulations that vary by region and local government. Since entering the eternal memorial grave business in 2007, the company has accumulated know-how through its track record of 92 temples and a cumulative total of 32,726 contracted clients, forming a competitive advantage that is difficult to imitate.
By selecting areas mainly in the Greater Tokyo area based on age-specific population analysis and other data, and by concentrating deployment while preventing cannibalization, the company has improved the efficiency of its advertising expenses. In FY2025 (ending August 2025), the operating profit margin reached 24.3% (¥713 million / ¥2,929 million), achieving operating profit growth of 40.9%, which exceeded the sales growth rate of 23.3%.
Through long-term recruitment agency contracts of 10 to 20 years and expansions of eternal memorial graves based on contract status (39% of opened temples had implemented at least one expansion as of the end of FY2025 (ending August 2025)), the company has maintained revenue per temple at ¥34 million (FY2025, ending August 2025). This has remained stable without significant decline from ¥35 million in FY2021 (ending August 2021).
ENVALITH's Perspective
Performance Trend
For the nine months ended May 2026 (September 2025 to May 2026) of FY2026 (ending August 2026), net sales were ¥2,596 million (up 19.5% year-on-year), operating profit was ¥646 million (up 7.7% year-on-year), and ordinary profit was ¥698 million (up 17.1% year-on-year). Quarterly net profit was ¥405 million (down 2.5% year-on-year), falling below the prior-year period due to the impact of an impairment loss of ¥110 million recorded in the interim accounting period. For reference, full-year results for FY2025 (ended August 2025) were net sales of ¥2,929 million, operating profit of ¥713 million, and net income of ¥457 million. The contribution of 12 newly opened temple gardens and an improved contract conversion rate drove net sales, while increases in selling, general and administrative expenses and depreciation expenses restrained growth in operating profit. As for the external environment, risks continue whereby rising prices, increased import costs due to exchange rate fluctuations, and sluggish growth in real wages affect personal consumption.
Growth Strategy
Deepening the dominant strategy through continued expansion of newly opened temples and improved conversion rates via service site renewal
During the cumulative nine-month period from October 2025 to May 2026, a total of 12 new temples were opened, contributing to an increase in company-wide net sales. While deepening the dominant strategy in the Kanto region, the company is also promoting expansion into new areas such as Osaka Prefecture (Kansai region).
The company renewed its service site to optimize customer acquisition channels, aiming to increase the number of guided visits and improve conversion rates. Following a period affected by upfront investment, improved conversion rates and appropriate cost control have taken effect, with net sales trending generally above targets.
By adding eternal memorial graves at existing temples, the company is increasing net sales while limiting additional construction costs. The balance of long-term prepaid expenses stood at ¥1,643 million as of the end of May 2026, an increase of ¥205 million from the end of the previous fiscal year, reflecting continued accumulation of upfront investment.
In addition to the dominant strategy centered on the Kanto region, the company has begun expanding into new areas such as Osaka Prefecture (Kansai region). Expansion into Kyushu and other areas is also positioned as part of the growth strategy, but results outside the Kanto region remain limited at this stage, and future progress will be closely watched.
Last updated: July 17, 2026