BROAD ENTERPRISE CO.,LTD.
4415・Growth Market・Information & Communication
Business
Broad Enterprise Co., Ltd. provides value-enhancement services for rental apartments, condominiums, detached houses, buildings, and lodging facilities, with real estate owners, management companies, and homebuilders as its principal customers. Its core services rest on four pillars: the whole-building bundled internet service "B-CUBIC," the IoT intercom "BRO-LOCK," interior renovation service "BRO-ROOM," and exterior wall painting/large-scale renovation service "BRO-WALL." By combining these with its proprietary receivables securitization scheme "BRO-ZERO" (zero initial installation cost), the company supports improvements in occupancy rates and rents for properties while reducing the financial burden on real estate owners. Against the social backdrop of the vacant-house problem affecting more than approximately 9 million homes, the company also positions itself as contributing to regional revitalization and vitalization, and it listed on the Tokyo Stock Exchange Growth Market in April 2022.
Business Model
Through its BRO-ZERO scheme utilizing receivables securitization, the company enables real estate owners to adopt its services with zero upfront cost burden, earning revenue via monthly billing and construction contracting. B-CUBIC's main revenue sources are the provision of internet equipment and monthly line usage fees; BRO-ROOM's main source is contracted interior renovation work; and BRO-WALL's main source is prime contracting for exterior wall painting and large-scale renovation work. The company is expanding its sales scale by improving the efficiency of order acquisition through the expansion of its sales agency network and collaboration with property management companies.
Company Strengths
Through BRO-ZERO, a proprietary financing scheme utilizing receivables securitization, the company has built a mechanism that eliminates the upfront investment burden for real estate owners. This low barrier to adoption serves as a differentiating factor versus competitors, enabling expansion of target properties to detached houses, buildings, lodging facilities, and more. A commitment line agreement totaling ¥2,000 million with MUFG Bank underpins the funding base.
The company can offer one-stop proposals combining B-CUBIC (internet), BRO-LOCK (IoT intercom), BRO-ROOM (interior renovation), and BRO-WALL (exterior wall repair). In FY2025 (ending December 2025), BRO-ROOM and BRO-WALL secured orders significantly exceeding the same period of the prior year, with BRO-WALL growing into one of the core businesses.
Revenue expanded roughly threefold, from ¥2,501 million in FY2021 to ¥7,414 million in FY2025, with FY2025 (ending December 2025) marking a record high, up 57.8% year on year. Operating profit also reached ¥978 million, up 32.4% year on year. Multiple social tailwinds—the vacant house problem, mandatory energy conservation measures, and rising inbound demand—are driving this growth.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has expanded at an accelerating pace: ¥2,501 million (FY2021) → ¥2,993 million (FY2022) → ¥3,958 million (FY2023) → ¥4,697 million (FY2024) → ¥7,414 million (FY2025). In Q1 of FY2026 (ending December 2026), the company achieved substantial growth in both revenue and profit, with revenue of ¥2,547 million (up 88.1% year on year), operating profit of ¥561 million (up 228.7% year on year), and quarterly net profit of ¥229 million (up 128.1% year on year). The main drivers were rising order unit prices for BRO-ROOM and expanding flow revenue from BRO-WALL. As an external factor, resilient demand for value-up work and repair/renovation work on existing properties, against a backdrop of persistently high new-build prices and rising construction costs, has served as a tailwind. On the other hand, it should be noted that the gap between operating profit and ordinary profit is widening due to a sharp increase in losses on receivable sales and commission expenses associated with the expansion of the BRO-ZERO scheme. There is no change to the full-year forecast (revenue of ¥10,000 million, operating profit of ¥1,700 million, net profit of ¥650 million).
Growth Strategy
Positioning BRO-ROOM and BRO-WALL as core offerings, the company is accelerating market expansion through BRO-ZERO and subsidiarization
In addition to acquiring and strengthening partnerships with sales agents, the company is expanding its target areas to include accommodation facilities, condominiums, and regional revitalization projects. In the first quarter of FY2026 (ending March 2026), orders significantly exceeded those of the same period last year, and order unit prices also continued to rise.
The company is promoting stronger collaboration with existing management companies and capturing renovation demand. In the first quarter of FY2026 (ending December 2026), orders trended favorably, driving flow revenue. The company will continue to expand orders at low cost by leveraging its network of management companies.
In addition to rental apartments, the company is promoting proposals combining BRO-ZERO with existing products for accommodation facilities, condominiums, and regional revitalization projects. It is accelerating new customer acquisition by leveraging BRO-ZERO's low barrier to adoption.
Based on a resolution of the Board of Directors on April 14, 2026, the company borrowed ¥1,100 million from The Kiyo Bank (executed on April 20, 2026) to promote making Japan Central Management Co., Ltd. a wholly owned subsidiary, thereby expanding its business scope and customer base.
Last updated: July 17, 2026