R.C.CORE CO.,LTD.
7837・Standard Market・Other Products
Business
RC Core Co., Ltd. is primarily engaged in the planning, development, sales, and construction of "BESS," a planned housing brand that extensively uses natural materials such as log houses. The company operates through three segments: direct sales via three company-operated locations (Tokyo, Kanagawa, Chiba); franchise deployment through regional sales companies comprising 17 companies and 29 locations nationwide; and construction contracting handled by the consolidated subsidiary BESS Partners Group across 10 locations nationwide. Its primary customers are individual end users seeking a lifestyle centered on "enjoying" rather than merely "residing," and in recent years the company has also focused on the BtoB Business (Specialty Construction Business) targeting corporate clients such as resort facilities and childcare facilities. Cumulative contracted units have reached approximately 23,000, and the business has a 40-year history since its founding in 1986.
Business Model
The Company has a dual-structure revenue model combining headquarters functions responsible for product planning and component kit manufacturing/supply with construction prime contracting at directly-managed locations. It enters into franchise agreements with regional sales companies on condition that they open a standalone LOGWAY showroom, earning component kit sales revenue and royalties. In the directly-managed division, revenue is recognized through construction prime contracting agreements. The characteristic feature is an FC structure that enables nationwide expansion with low capital, maintaining the sales network while restraining capital expenditure at headquarters.
Company Strengths
Since commencing operations in 1986, cumulative contracted units have reached approximately 23,000, with the Wonder Device alone supported by over 7,000 cumulative customers. Brand recognition cultivated over 40 years of history, along with customer communities such as approximately 2,000 LOGWAY Coacher members and the LOGWAY Club, serve as proprietary assets underpinning the realization of latent demand.
The company holds a patent for CLT log materials (Patent No. 7169690) and the "CLT Log House" trademark, and obtained 90-minute quasi-fire-resistant structure certification in February 2023. This enabled the construction of 3-story CLT log houses in fire prevention districts, and in December 2023 the company completed Japan's first 3-story CLT log house in a fire prevention district. This forms a technological entry barrier that is difficult for competitors to replicate in a short period.
The company operates an FC system for its 17 regional sales companies across 29 locations nationwide, requiring no franchise fees or security deposits, with the condition of exclusive LOGWAY store openings. Headquarters focuses on supplying component kits and providing brand and know-how, minimizing capital expenditure while achieving nationwide expansion. As of the end of March 2026, 31 locations including directly-operated stores are in operation, and a special dealer system has also been newly established for underserved areas.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) were ¥10,547 million (down 4.0% year on year), marking a 5th consecutive period of declining revenue. Operating loss expanded to ¥594 million (from ¥491 million in the prior period), the 6th consecutive period of operating loss. The main causes were the prolonged review period for building confirmation applications and insufficient order intake in the first half. Net loss for the period widened to ¥816 million due to the recognition of an impairment loss of ¥290 million. On the other hand, order intake recovered in the second half, and the contract balance at period-end surged to ¥11,385 million (up 24.9% year on year). For FY2027 (ending March 2026), the company forecasts net sales of ¥13,600 million, operating profit of ¥10 million, and net income of ¥510 million (including recognition of extraordinary income from compensation related to the relocation of the BESS Tama exhibition site). As external factors, the declining trend in housing starts and elevated construction material costs continue, and the key point of focus is the degree of certainty regarding achieving a return to profitability.
Growth Strategy
A four-year plan aiming for multifaceted earnings recovery through the turnaround of the new detached housing business, expansion of the BtoB specialty construction business, and collaboration with Asahi Kasei
Formulated a four-year plan targeting consolidated operating profit of ¥1.0 billion in the 45th fiscal period (FY2030, ending March 2030). The first year (FY2027, ending March 2027) targets net sales of ¥13,600 million and a return to profitability with operating profit of ¥10 million, promoting the turnaround of the new detached housing business and strengthening the earnings structure through growth in new businesses.
From April 2026, the name of the specialty construction business (Specialty Construction Business) will be changed to "BESS ARCHITECTS," and sales of the "BESS Resort Package" for resort operators will commence. A collaborative project for value-added rental housing with Asahi Kasei Real Estate Residence will also be launched, promoting stable growth in the BtoB domain.
Based on the capital and business alliance concluded in October 2025, the company will promote enhanced collaboration in the BtoB domain, joint research on living spaces, and mutual complementation in technological areas. Starting with the collaborative project with Asahi Kasei Real Estate Residence (commencing April 2026), the company aims to generate concrete synergies.
The company plans to relocate and renew the BESS Tama showroom during FY2027 (ending March 2027), strengthening brand messaging and expanding recognition among new customer segments as a new flagship store. Compensation income associated with the relocation is expected to be recorded as extraordinary income (as disclosed in January 2026), which is a major factor behind the forecast net profit of ¥510 million for FY2027 (ending March 2027).
To develop new markets in areas and price ranges different from existing products, the company plans to begin pre-sales of a new, somewhat more urban-type product from the latter half of FY2027 (ending March 2027). The rollout will center on major metropolitan area locations, aiming for spillover effects in enhancing brand value and acquiring new customers.
Last updated: July 19, 2026