CEL Corporation
5078・Standard Market・Construction
Business
CEL Corporation is an apartment specialty manufacturer operating in Tokyo, Kanagawa, Chiba, and Saitama Prefectures, providing one-stop consulting, construction, and management services related to apartment management. Its main customers are divided into two segments: landowners who own land (Rental Housing Business) and affluent individuals who do not own land (Rental Development Business). The company develops high-value-added apartments targeting young people aged 25 to 35 under its flagship brand "My Style vintage." It manufactures structural components at its own factory (Chiba Factory) and has established a vertically integrated business model that handles everything in-house, from construction using its proprietary CEL-Z (Z Construction Method) to rental management after completion. The company listed on the Standard Market of the Tokyo Stock Exchange in March 2022.
Business Model
Revenue consists of three segments: (1) Rental Housing Business (net sales of ¥9,295 million): apartment construction contracting for landowning owners. (2) Rental Development Business (net sales of ¥4,614 million): sales to affluent customers of high-value-added apartment-attached land that the company itself procures and builds in the Jonan and Josai areas. (3) Rental Management Business (net sales of ¥10,011 million): stock income such as rental management fees based on 12,475 units under management. A notable feature is the structure whereby customers are acquired through the construction flow business, and long-term recurring revenue is accumulated through the management contract stock business.
Company Strengths
The company employs its proprietary CEL-Z (Z Construction Method), which has obtained certification for model conformity and manufacturer certification for model components from the Minister of Land, Infrastructure, Transport and Tourism, and manufactures structural components in-house at its ISO9001-certified Chiba plant. By establishing an integrated system covering design, construction, and management, the company achieves stable supply of high-value-added products without engaging in price competition with other companies.
As of the end of FY2025 (ending February 2025), the equity ratio stood at 82.1% (80.4% at the end of the previous fiscal year), with cash and cash equivalents of ¥18,561 million. The company maintains a policy of funding working capital with equity, sustaining extremely low reliance on interest-bearing debt and preserving strong financial soundness. This provides high financial resilience even in a downturn in real estate market conditions.
The number of managed units in the Rental Management Business reached 12,475 as of the end of February 2025 (an increase of 161 units from the end of the previous fiscal year). The occupancy rate remained at a high level of 98.5%, reflecting a structure in which recurring income such as rental management fees steadily accumulates. Revenue from the Rental Management Business was ¥10,011 million, accounting for approximately 42% of consolidated revenue.
ENVALITH's Perspective
Performance Trend
Revenue grew for four consecutive periods from ¥18,424 million in FY2022 to ¥23,922 million in FY2025, but fell back to ¥20,190 million in FY2026 (down 15.6% year on year). Operating profit also declined, from ¥2,018 million in FY2025 to ¥1,692 million in FY2026. In Q1 FY2027 (ending March 2028), revenue was ¥5,510 million (down 0.6% year on year) and operating profit was ¥378 million (down 36.6% year on year), continuing the trend of profit decline. The main cause was a decrease in the number of housing starts and handovers in the Rental Housing Business, resulting from the previous period's product line narrowing strategy. In terms of the external environment, persistently high construction material and labor costs, combined with a year-on-year decline in new rental housing starts, squeezed profitability. The full-year forecast calls for revenue of ¥23,580 million and operating profit of ¥2,016 million, anticipating a substantial recovery, but this is premised on a weighting toward the second half.
Growth Strategy
Toward Vision 2030, pursuing growth along three axes: enhancement of value-added offerings, expansion of stock revenue, and multifaceted management
Actively proposing high value-added products such as Tokyo Zero Emission Housing-Compliant Apartments, ZEH specifications, solar panel compatibility, and Fwin suite to owners in order to raise the per-building unit price. Continuing to promote appropriate rent price pass-through as well. The impact of the product narrowing carried out in the previous fiscal year became apparent in the first quarter, but the policy of enhancing value-added offerings continues.
In March 2026, established a Design Company by spinning off the design, materials management, and construction supervision departments as an independent unit. Aiming to achieve early construction starts by establishing design processes compliant with the revised Building Energy Efficiency Act and speeding up review processes, thereby working to recover the number of construction starts and handovers.
Building up managed units while maintaining a high occupancy rate (98.6%) through enhanced joint sales activities leveraging collaboration among the three businesses and collaboration with CEL Leasing Partners (16 companies) and CEL Maintenance Partners (9 companies). Also promoting improvement of owner returns through rent increase proposals utilizing an AI assessment system.
Starting from FY2027 (ending February 2027), which marks the halfway point of "Vision 2030," added a target market capitalization of ¥25.0 billion as a new target indicator. Promoting management with awareness of cost of capital through strengthened shareholder returns, including share buybacks (100,000 shares, ¥502 million this quarter) and increased dividends (annual forecast of ¥160, up ¥25 year on year).
Last updated: July 17, 2026