Entrust Inc.

Business Details

A comprehensive guarantee service company operating the Guarantee Business (Rent Guarantee, Nursing Care Fee Guarantee, Medical Expense Guarantee, Child Support Guarantee), the Solution Business (C&O (Consulting & Operation) Service, Doc-on Service, Insurance Desk Service), and the IT Services Business (Carol System Co., Ltd.). Main customers include rental property management companies, nursing care facilities, and medical institutions. The company's policy is to expand the know-how cultivated in Rent Guarantee into other fields and to popularize guarantee schemes as social infrastructure. The parent company is the Prestige International Group.

Recent Overview

Both revenue and profit reached record-high levels, driven by increased revenue in the Guarantee Business and the consolidation of the IT Services subsidiary

In FY2026 (ending March 2026), the company achieved revenue of ¥12,283 million (up 16.2% year on year) and operating profit of ¥2,766 million (up 18.8% year on year). The Guarantee Business was the driver, reaching ¥11,050 million (up 16.0% year on year) due to growth in new and existing contracts. The Solution Business declined to ¥909 million (down 13.0% year on year) due to the impact of conversions to guarantee contracts. In January 2026, Carol System Co., Ltd. was made a consolidated subsidiary, adding the newly established IT Services Business (¥323 million). For FY2027 (ending March 2027), the company forecasts revenue of ¥14,200 million and operating profit of ¥3,000 million. The annual dividend was increased to ¥38.00 (from ¥25.00 in the prior period), with ¥49.50 forecast for FY2027 (ending March 2027).

Key Products

Growth Drivers

• Continued growth in new and renewal guarantee fees driven by increases in new contracts and contracts in force in the Guarantee Business
• Accumulation of contracts in force by promoting the conversion of Solution Service clients to guarantee contracts
• Growth in new fields driven by market activation in Nursing Care Fee Guarantee and Medical Expense Guarantee
• Expansion of revenue from existing customers and acquisition of new customers in Carol System Co., Ltd.'s IT Services Business
• Industry tailwinds from the increasing trend in the proportion of guarantee company usage
• Expansion of business domains through development of new fields and untapped markets

Risks

• Impact on new contract acquisition due to an adjustment phase in new rental housing construction starts
• Margin pressure from increases in bad debt expenses and outsourcing commissions linked to growth in contracts in force (advance payments increased by ¥1,056 million year on year)
• Future market maturation and intensifying competition in the Rent Guarantee market
• Risk of domestic economic downturn due to changes in the external environment, such as U.S. trade policy
• Risk of fluctuation in the collectability of indemnity claims receivable after subrogated payment (allowance for doubtful accounts balance of ¥3,277 million)
• Risk of impairment of goodwill (¥467 million) related to the integration and monetization of Carol System Co., Ltd.