ZENHOREN CO.,LTD.

Business Details

The company partners with real estate management and brokerage companies (partner companies) nationwide to provide a service guaranteeing tenants' rent payment obligations to landlords. Under this scheme, the company collects a guarantee commission fee from tenants, and in the event of delinquency, makes a subrogated payment on the tenant's behalf before seeking reimbursement from the tenant. In April 2025, the company became a consolidated subsidiary of Mitsubishi UFJ Financial Group (MUFG), and is pursuing a growth strategy leveraging brand strength and synergy effects. The company is also focusing on expanding adoption of its electronic application system "Z-WEB2.0" and enhancing AI-based screening to reduce credit costs.

Recent Overview

Net sales, operating profit, and net income all reached record highs, with MUFG synergies now taking concrete shape

In FY2026 (ending March 2026), the company recorded net sales of ¥26,188 million (up 2.1% year on year), operating profit of ¥3,173 million (up 24.5% year on year), and net income of ¥1,728 million (up 6.6% year on year), setting new record highs across all major indicators. The company achieved these record profits despite recording ¥600 million in retirement benefits for departing directors as an extraordinary loss. In February 2026, the company released the "Mitsubishi UFJ Card Plan," giving concrete form to MUFG synergies. It also newly concluded partnerships with two regional banks, Kagoshima Hosho Service and Ryugin DC. For FY2027 (ending March 2027), the company forecasts net sales of ¥27,416 million and net income of ¥2,524 million (up 46.0% year on year), and expects to continue setting new record highs.

Key Products

Growth Drivers

• Synergy effects from the capital and business alliance with the MUFG Group (Mitsubishi UFJ Card Plan, introductions to quality real estate companies, payment solutions, etc.)
• Improved electronic application and contract rates and greater operational efficiency through expansion of Z-WEB2.0 adoption locations (20,617 locations)
• Reduced credit costs through enhanced AI-based screening (subrogated payment rate of 0.45%, subrogated payment recovery rate of 96.4%)
• Expanded market share in non-branch regions through a partnership strategy with regional banks (two new partnerships concluded during the fiscal year)
• Expansion into new markets such as commercial rent guarantees (including logistics facilities) and services for the elderly
• Establishment of a new revenue business and transition toward becoming a platform operator through the tenant portal site "YUIPASS"
• Achievement of non-continuous growth based on the long-term management plan (FY2026–FY2029)

Risks

• Risk of market contraction due to a decline in new rental housing construction starts (down 13.5% year on year from April 2025 to March 2026)
• Risk of dumping pressure and deteriorating profitability due to intensifying competition in the rent guarantee industry
• Risk of increased rent delinquencies and higher credit costs due to rising trends in personal bankruptcy/rehabilitation and corporate bankruptcies
• Risk of long-term decline in rental housing demand due to Japan's declining population
• Risk of deteriorating tenant payment ability due to macroeconomic uncertainty, including rising crude oil and raw material prices stemming from the situation in the Middle East
• Costs associated with responding to more sophisticated governance and compliance requirements following consolidation as a subsidiary of the MUFG Group
• Risk of stagnating medium- to long-term guarantee demand due to a decline in new investment in rental housing (down 6.5% year on year)