Jibannet Holdings Co., Ltd.

Business Details

Based on requests from homebuilders and other contractors, this segment provides analysis and judgment of housing ground survey data (issuance of ground analysis judgment reports and ground quality certificates), ground surveys, and partial compaction construction. It also provides ground warranty services, under which damages are compensated for 10 or 20 years from the delivery date if a ground-related accident occurs in a home that has received a ground quality certificate. Through the consolidation of Housewarranty Co., Ltd. as a subsidiary, the group's combined market share has expanded to approximately 20%, and the business scope has expanded beyond the housing-related domain into ground consulting for the construction of grid-scale battery storage sites.

Recent Overview

Revenue up 85% due to Housewarranty consolidation effect, though margin declined

In FY2026 (ending March 2026), the consolidation of Housewarranty Co., Ltd. as a subsidiary (shares acquired on April 22, 2025, for a consideration of ¥250 million) significantly increased the number of client customers, driving segment revenue up sharply to ¥2,924 million (up 85.1% year on year). On the other hand, segment profit margin declined from 21.5% to 12.3% due to the impact of goodwill amortization expenses (¥497 million recorded, amortized equally over 8 years) and integration-related costs. Ground services for grid-scale battery storage site construction received orders exceeding initial expectations, beginning to function as a new growth area. In addition, following the conclusion of a new insurance contract effective December 31, 2025, a reversal of the provision for damage compensation was made, resulting in the recognition of extraordinary income of ¥251 million.

Key Products

Growth Drivers

• A significant increase in the number of client customers and realization of scale merits through the consolidation of Housewarranty Co., Ltd. as a subsidiary (expanding the group's combined market share to approximately 20%)
• Improved operational efficiency and prevention of recurring ground accidents through accelerated PMI (post-merger integration), including system standardization, business process redesign, and unification of housing ground analysis standards
• Expansion of the revenue base into the non-housing domain through the full-scale rollout of ground consulting and services for grid-scale battery storage site construction (orders received exceeding initial expectations)
• Capturing new demand through the energy-saving and structural calculation outsourcing service in response to the revised Building Standards Act (effective April 2025)
• Reduction in ground subsidence accidents and damage compensation costs through improved analysis technology and revised design/construction review standards for ground improvement work

Risks

• Risk of demand contraction due to the declining trend in new housing starts in Japan (310,311 units in FY2026, down 10.2% year on year)
• Risk of impairment of goodwill (¥497 million) associated with the Housewarranty integration
• Risk of increased damage compensation costs due to recurrence of ground accidents (partially hedged by new insurance contracts)
• Risk of fluctuation in the estimated amount of the provision for damage compensation due to changes in earthquake risk or revisions to insurance contract terms
• Medium- to long-term risk of contraction in the domestic housing market due to the declining birthrate and aging population
• Risk of prolonged sluggishness in segment profit margin due to integration costs and prolonged PMI with Housewarranty