ENVALITH
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ASAX CO.,LTD.

8772・Standard Market・Other Financing Business

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株式会社アサックス logo
ASAX CO.,LTD.8772

Business

ASAX Co., Ltd. was established in 1969 and is listed on the Standard Market of the Tokyo Stock Exchange as a specialty finance company focused on real estate-secured loans. In its core Real Estate-Secured Loans (Business Financing) business, the company provides business financing and other loans secured by real estate, with the balance of operating loans receivable reaching ¥112,014 million at the end of FY2026 (ending March 2026). The customer base is divided between business operators (74.9% of the balance) and consumers (25.1%), with real estate leasing companies, individuals, and real estate businesses being the main industries served. As complementary businesses, the company operates the Credit Guarantee Business, Real Estate Leasing Business, and Real Estate Sales Business, and its consolidated subsidiary ASAX America, Inc. has also been consolidated from FY2026 (ending March 2026) onward. The head office is located in Hiroo, Shibuya-ku, Tokyo, and the company also has branches including the Omiya Branch.

Business Model

The company raises funds through borrowings from financial institutions (average funding rate of 1.50%) and executes real estate-secured loans (average contracted interest rate of 5.92%) to secure a spread of approximately 4.4%. Interest on operating loans of ¥6,315 million is the main revenue source in FY2026 (ending March 2026). Other operating revenue of ¥2,465 million, including fee income of ¥1,251 million and cancellation penalty fees of ¥405 million, also supplements revenue. All loans are 100% secured by real estate, and low-cost management maintaining zero bad debt write-offs supports a high operating margin (66.3%).

Company Strengths

Operating loans receivable of ¥112,014 million at the end of FY2026 (ending March 2026) are 100% backed by real estate collateral (collateral coverage ratio of 100%), and loan write-offs for the period were zero. There were also no transfers to bankruptcy reorganization claims, demonstrating that underwriting standards emphasizing "soundness of receivables" have been maintained over a long period.

Against an average contracted interest rate of 5.92%, the average funding rate was 1.50%, securing an interest margin of approximately 4.4%. In FY2026 (ending March 2026), operating revenue was ¥8,779 million against operating income of ¥5,820 million, resulting in an operating margin of 66.3%. Through thorough low-cost management, the company has consistently maintained an operating margin exceeding 60% from FY2022 through FY2026.

The outstanding borrowings of ¥74,441 million at the end of FY2026 (ending March 2026) are diversified across city banks, regional banks, trust banks, other banks, and securitized borrowings. While regional banks represent the largest source at ¥36,689 million, this is diversified with city banks at ¥14,936 million and other banks at ¥15,386 million, among others, reducing the risk of dependence on specific counterparties.

ENVALITH's Perspective

FY2026 (ending March 2026) is the first year of consolidated financial statements, so year-over-year comparison is not possible; however, on a non-consolidated basis, operating revenue grew +14.7%, ordinary income +16.7%, and net income +15.6%, recording accelerated growth. On a consolidated basis as well, the company maintained high profitability with an operating margin of 66.3%, ROE of 7.8%, and ordinary income to total assets ratio of 4.9%, and the scale-expansion effect from the consolidation of ASAX America, Inc. can also be confirmed. The forecast for FY2027 (ending March 2027) (operating revenue of ¥9,804 million, net income of ¥4,121 million) anticipates growth of +11.7% and +4.3% respectively versus the consolidated results, and given the company's past growth trajectory, achievability is judged to be realistic.

Total long-term borrowings (including the current portion due within one year) reached ¥74,441 million, and cash flow from financing activities was a net inflow of ¥7,354 million, driven by a net increase in long-term borrowings of ¥8,012 million. On the other hand, operating cash flow was persistently negative at ¥(6,584) million, due to factors such as a ¥9,430 million increase in operating loans receivable, and the cash flow to interest-bearing debt ratio and interest coverage ratio have been incalculable for five consecutive periods. The equity ratio stood at 40.6% (a declining trend from 49.5% in FY2022 (ended March 2022)), and as an external factor, continued attention is needed regarding the risk that changes in financial institutions' lending stance and rising procurement costs amid an interest rate hike phase could pressure earnings.

The collateral backing the ¥112,014 million balance of operating loans receivable is centered on real estate in and around central urban areas, and steady land price levels support both the maintenance of collateral value and the buildup of new loans. As external factors, the company itself is closely monitoring the impact of U.S. trade policy, geopolitical risks, price inflation, and volatility in financial and capital markets on real estate liquidity and prices. Should land prices soften, there is a possibility that the risk of collateral shortfalls could materialize simultaneously with a curtailment of new lending, and given the structural concentration in a single segment, the lack of diversification effects should be noted as a risk.

Growth Strategy

Steady continued growth built on three pillars: accumulation of loan receivable balances, maintenance of receivable soundness, and overseas expansion.

While emphasizing 'soundness of receivables,' the company will pursue proactive customer development and promotional activities to build up high-quality loan receivables. The balance of operating loans receivable stood at ¥112,014 million at the end of FY2026 (ending March 2026), and the company targets operating revenue of ¥9,804 million (+11.7%) for FY2027 (ending March 2027) as well.

Starting from FY2026 (ending March 2026), ASAX America, Inc. has been incorporated as a consolidated subsidiary, marking the first preparation of consolidated financial statements. Through the expansion of overseas business, the company aims to diversify revenue sources and expand scale. As a result of this consolidation, cash and cash equivalents increased by ¥2,186 million.

The balance in the Credit Guarantee Business has trended steadily, and a certain level of results is expected to continue in the next fiscal period. The Real Estate Leasing Business secures stable revenue (real estate leasing income of ¥344 million) from leased real estate (net amount of ¥6,614 million). Neither is expected to have a significant impact on consolidated results, but both contribute to revenue stability.

Last updated: July 19, 2026