CEL Corporation
5078・Standard Market・Construction
Rental Housing Business
Established an integrated in-house production system as a specialized apartment manufacturer targeting young people in the Tokyo metropolitan area
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers), Q1 cumulative FY2027 (ending March 2027) | ¥1,971 million | ¥2,144 million (Q1 cumulative FY2026 (ending March 2026)) | ↓ |
| Segment revenue (including internal, total), Q1 cumulative FY2027 (ending March 2027) | ¥2,088 million | ¥2,526 million (Q1 cumulative FY2026 (ending March 2026)) | ↓ |
| Segment profit, Q1 cumulative FY2027 (ending March 2027) | ¥125 million | ¥375 million (Q1 cumulative FY2026 (ending March 2026)) | ↓ |
| Segment profit margin (based on total revenue), Q1 cumulative FY2027 (ending March 2027) | approx. 6.0% | approx. 14.8% (Q1 cumulative FY2026 (ending March 2026)) | ↓ |
| Segment revenue (external customers), full year FY2026 (ending March 2026) | ¥8,359 million | – | — |
| Segment profit, full year FY2026 (ending March 2026) | ¥1,143 million | – | — |
Business Details
Specializing in the Tokyo metropolitan area, the company plans, designs, constructs, and undertakes apartments targeting young people aged 25 to 35. Centered on its flagship brand "My Style vintage," it operates an "apartment specialty manufacturer" model that handles everything from land utilization consulting to structural component manufacturing at its own factory (Chiba Factory) and in-house construction. From March 2026, a new Design Company was established, transitioning to a four-company structure comprising Asset Management, Construction, Design, and Chiba Factory. The company thoroughly manages quality through its proprietary construction method "CEL-Z (Z Construction Method)" and ISO9001-certified factories.
Recent Overview
Number of construction starts and handovers declined due to strategic product narrowing in the prior period, leading to a significant decline in revenue and profit
In the first quarter of FY2027 (ending March 2027), the Rental Housing Business saw a decline in construction starts and handovers due to the effects of the strategic narrowing of products sold in the prior period, resulting in revenue of ¥2,088 million (down 17.3% year on year) and segment profit of ¥125 million (down 66.6% year on year), representing a significant decline in both revenue and profit. Meanwhile, the company established a new Design Company effective March 1, 2026, aiming to strengthen design and technical capabilities, while working to speed up review processes and enable earlier construction starts through the establishment of design and specifications compliant with the revised Building Energy Efficiency Act. The number of new rental housing construction starts in Tokyo declined 7.5% year on year on a cumulative basis for the first quarter, reflecting a soft market environment overall.
Key Products
Growth Drivers
- Enhanced added value and higher per-building unit prices through product concentration on the flagship brand "My Style vintage"
- Improved unit prices through proposals of high-value-added products such as Tokyo Zero Emission Housing, ZEH specifications, and solar panel compatibility
- Strengthened order intake foundation through expansion of the referral network "CEL Expert Partners+" with professional advisors and financial institutions
- Strengthened design and technical capabilities and faster review/earlier construction starts through the establishment of the Design Company (March 2026)
- Improved productivity and cost control through multi-skilled talent development and operational standardization at the Chiba Factory Company
- Continued product and technology development through academia-industry collaboration (Kyoritsu Women's University, Chiba Institute of Technology, Tokyo University of Science)
- Promotion of appropriate rent pass-through and strengthened coordination with the Rental Management Business
Risks
- Risk of rising costs due to sustained high prices for construction materials, labor, and transportation
- Risk of market contraction due to declining trend in new rental housing construction starts (Tokyo: down 7.5% year on year cumulative for Q1)
- Risk of revenue fluctuation due to decreased number of construction starts and handovers resulting from strategic narrowing of products sold
- Risk of rising construction material prices and delivery delays due to escalating tensions in the Middle East
- Risk of construction delays due to difficulty securing construction partners and labor shortages
- Risk of decreased owner financing capacity and investment appetite due to rising interest rates
- Risk of demand decline following the conclusion of front-loaded demand associated with the revised Building Energy Efficiency Act
Last updated: June 19, 2026