ZENHOREN CO.,LTD.
5845・Standard Market・Other Financing Business
Business
ZENHOREN CO.,LTD. is a company specializing in rent guarantee services, established in 2001. It provides a scheme whereby, if a tenant defaults on rent or other payments, the company makes a subrogated payment to the landlord and subsequently seeks reimbursement from the tenant. Its main customers are real estate management and brokerage companies (partner companies) nationwide, and as of the end of March 2026, the cumulative number of partner company locations reached 58,524, with a cumulative total of 4,502 thousand guarantee contracts. The company listed on the Tokyo Stock Exchange Standard Market in October 2023, and in April 2025 became a consolidated subsidiary of the MUFG Group following a tender offer by Mitsubishi UFJ NICOS Co., Ltd. In addition to residential guarantees, the company is also expanding into new markets such as commercial use and services for the elderly.
Business Model
The company collects an initial guarantee commission fee (lump-sum at move-in) and an annual guarantee commission fee (recurring charge) from tenants. In the breakdown of revenue for FY2026 (ending March 2026), initial guarantee commission fee revenue was ¥12,034 million, annual guarantee commission fee revenue was ¥8,709 million, and other revenue was ¥5,444 million. The structure is such that annual guarantee fee revenue expands in a stock-like manner as the cumulative number of contracts builds up, with profitability supported by the suppression of the subrogation payment rate (0.45%) through advanced AI screening and a high collection rate (96.4%).
Company Strengths
Through advanced AI-based screening, the substitute payment rate (after early payment deduction, 30-day period) reached 0.45% (a 0.01pt improvement year-on-year), and the substitute payment recovery rate reached 96.4% (a 0.4pt improvement year-on-year). The company positions its indemnity receivables-to-sales ratio of 22.5% as the No.1 in the industry, and the reduction in credit costs directly contributes to the improvement in operating margin.
As a result of proactive sales activities through 19 sales offices nationwide, the number of partner company locations reached 58,524 as of the end of March 2026 (an increase of approximately 13% compared to three years ago), and the cumulative number of guarantee contracts reached 4,502 thousand. This scale of customer base forms an entry barrier that is difficult for competitors to replicate in a short period of time.
In April 2025, the company became a consolidated subsidiary of the MUFG Group and concluded a capital and business alliance with Mitsubishi UFJ NICOS and MUFG Bank. In February 2026, the company released the "Mitsubishi UFJ Card Plan," and expansion of the customer base is also progressing through introductions of quality real estate companies from MUFG Group companies. This enables differentiation by leveraging the Group's creditworthiness and brand power.
ENVALITH's Perspective
Performance Trend
Revenue rose for three consecutive fiscal years, hitting new record highs each time: ¥24,510 million in FY2024 → ¥25,658 million in FY2025 → ¥26,188 million in FY2026 (up 2.1% year on year in FY2026). Operating profit improved at an accelerating pace, from ¥2,224 million in FY2024 to ¥2,548 million in FY2025 and ¥3,173 million in FY2026, with operating margin rising 2.2 percentage points from 9.9% in FY2025 to 12.1% in FY2026. The main driver of the margin improvement was a reduction in cost of sales, achieved through lower credit costs resulting from more sophisticated AI-based screening. As an external factor, a decline in newly started rental housing units (down 13.5% year on year) constrained revenue growth, while the MUFG synergy and partnerships with regional banks helped expand the customer base. Operating cash flow increased substantially to ¥5,143 million (versus ¥3,063 million in the previous fiscal year), and the cash and cash equivalents balance at fiscal year-end grew to ¥9,435 million.
Growth Strategy
Pursuing record performance for FY2027 (ending March 2027) through four pillars: MUFG synergy, regional bank strategy, DX, and new market development
The "Mitsubishi UFJ Card Plan," released in February 2026, is positioned as a growth driver for residential rent guarantee. The customer base is being expanded through introductions of high-quality real estate companies by MUFG group companies. Concrete initiatives are being implemented across four areas: credit card products, business partner referrals, administrative efficiency improvements, and payment solutions.
Expanding the customer base by leveraging the strong sales networks of regional banks in areas where the Company has no sales branches. In FY2026 (ending March 2026), new partnerships were established with two companies: Kagoshima Hosho Service Co., Ltd. and Ryugin DC Co., Ltd. The Company will continue to promote its partnership strategy with regional banks to strengthen nationwide coverage.
The number of locations using Z-WEB2.0 expanded to 20,617 (+8,036 from the previous fiscal year-end), achieving an electronic application rate of 41.4%. Through "YUIPASS," a portal for tenants released in December 2025, a new revenue business has been established involving referral revenue for housing-related services. The Company aims to eventually transform into a platformer.
Began a strategic approach to Commercial Rent Guarantee leveraging the MUFG group's customer network. Guarantee services for logistics facilities, a large market, have also been launched to reach customer segments where guarantee utilization has not yet advanced. Services for the elderly are also being promoted as a promising growth market amid a declining population.
Following MUFG's consolidation of the Company as a subsidiary in April 2025, the long-term management plan was revised upward in the FY2026 (ending March 2026) earnings presentation materials. The Company is pursuing non-continuous growth across five pillars: MUFG strategy, regional bank strategy, elderly strategy, commercial strategy, and DX strategy. For FY2027 (ending March 2027), the Company expects record highs across all metrics: net sales, operating income, ordinary income, and net income.
Last updated: July 19, 2026