A-tie Co.,Ltd.

Business Details

The company provides full support on a one-stop basis for the planning, construction, customer acquisition, contract execution, and management of eternal memorial graves offered by temples, earning revenue as agency fees equal to the contract amount less the offering fee (shino-ryo) paid to temples. Against the backdrop of the social challenge of a lack of successors and difficulty in grave succession amid the advancing super-aging society, the company offers proprietary eternal memorial graves that are open to any religious sect, require no management fee, and have clear, transparent pricing. In the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), the company achieved net sales of ¥2,596 million (up 19.5% year on year).

Recent Overview

Net sales and ordinary profit grew by double digits year on year, but net profit declined slightly due to recording an impairment loss of ¥110 million

In the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), the company achieved net sales of ¥2,596 million (up 19.5% year on year), operating profit of ¥646 million (up 7.7%), and ordinary profit of ¥698 million (up 17.1%), representing an increase in both revenue and profit. On the other hand, because an impairment loss of ¥110 million was recorded as an extraordinary loss in the interim period, quarterly net profit declined slightly to ¥405 million (down 2.5%). A total of 12 new temples opened between October 2025 and May 2026, contributing to the boost in overall net sales. Following the renewal of the service site, improvements in the contract conversion rate and cost control efforts have been successful, and net sales have generally trended above target. There has been no change to the full-year earnings forecast (net sales of ¥3,415 million, operating profit of ¥859 million), and the progress rate for the cumulative third quarter stood at 76.0% for net sales and 75.3% for operating profit.

Key Products

Growth Drivers

• Structural expansion of demand for eternal memorial graves driven by the increasing annual number of deaths and lack of successors amid the advancing super-aging society
• Active opening of new temples (a total of 12 new temples opened during the cumulative third-quarter period from October 2025 to May 2026)
• Improvement in the number of inquiries and contract conversion rate through renewal of the service site, and optimization of customer acquisition channels
• Expansion into a new area in Osaka Prefecture (Kansai region) in addition to development centered on the Kanto region based on a dominant strategy
• Maintenance and improvement of net sales per temple through the addition of more eternal memorial graves at existing opened temples

Risks

• Risk that the difficulty of concluding contracts with new temples (due to the unanimous decision-making process unique to religious corporations) may make it difficult to achieve planned increases in the number of opened temples
• Compliance risk arising from inconsistencies in the interpretation and judgment of the Act on Cemeteries, Burials, etc. and related municipal ordinances
• Upward pressure on cost of sales and selling, general and administrative expenses due to rising prices and labor costs (selling, general and administrative expenses for the cumulative third quarter amounted to ¥1,122 million, up 24.5% year on year)
• Risk of recording impairment losses on fixed assets (an extraordinary loss of ¥110 million was already recorded in the interim period of FY2026, ending August 2026)
• Risk of rising customer acquisition costs and declining fee rates due to expanding entry by competitors