FUJI CORPORATION LIMITED

Business Details

Operating primarily in and around Osaka Prefecture, this segment offers custom-designed new detached houses (three brands: Sumi no Ie/Pure Air, S・O・U/HIRANAGI), condominiums for sale (Charmant Fuji/Brand Need), and land sales. Customers are mainly individual home buyers. The segment differentiates itself through its proprietary "FX-WOOD construction method" and the patented ventilation system "Sumi no Ie," adopting seismic grade 3 as standard. In FY2026 (ending March 2026), sales were ¥36,737 million, accounting for approximately 26.6% of total company sales, making it one of the mainstay segments.

Recent Overview

Sales increased but profit declined 29.1% year-on-year due to lower margins and absence of undeveloped land sales

In FY2026 (ending March 2026), units delivered increased in both divisions, with custom-designed housing units delivered at 515 (up from 486 in the prior period) and condominium units delivered at 334 (including 3 newly completed buildings, up from 284 in the prior period), achieving sales of ¥36,737 million (up 5.8% year-on-year). On the other hand, a decline in gross profit margin, combined with the absence of the highly profitable undeveloped land sales recorded in the prior period, pressured profit, resulting in segment profit of ¥1,595 million (down 29.1% year-on-year), a significant decline.

Key Products

Growth Drivers

• Increase in condominium units delivered (334 units in FY2026 (ending March 2026), up from 284 in the prior period) and accumulation of newly completed properties
• Recovery in custom-designed housing units delivered (515 units in FY2026 (ending March 2026), up from 486 in the prior period)
• Continued solid genuine demand against a backdrop of persistently high new-build prices, and improvement in employment and income conditions
• Response to diverse customer needs through the three-brand strategy and relative competitive advantage as competitors raise prices
• Growth expected in the condominium/detached housing for sale business in the following period (FY2027, ending March 2027) due to increased detached housing units delivered

Risks

• Profit pressure from declining gross profit margin trend and the absence of highly profitable undeveloped land sales
• Increased development costs and rising new-build prices due to rising or persistently high land prices, construction material costs, and labor costs
• Risk of reduced housing purchase appetite due to rising mortgage interest rates associated with policy rate hikes
• Risk of construction period fluctuations and impact on sales recognition timing due to material price volatility and procurement delays stemming from instability in the Middle East
• Seasonality risk in which sales concentrate in specific quarters due to the delivery-basis accounting method, causing significant quarterly performance fluctuations
• Risk of recording valuation losses on inventory (real estate for sale, real estate for sale in progress, real estate for development) due to market price declines