ENVALITH
株式会社AVANTIA logo

AVANTIA CO., LTD.

8904・Standard Market・Real Estate

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株式会社AVANTIA logo
AVANTIA CO., LTD.8904

Business

AVANTIA Co., Ltd. was established in 1989 and is listed on the Standard Market of the Tokyo Stock Exchange as a comprehensive real estate group. Comprising the company and 11 consolidated subsidiaries, it centers its business on the design, construction, and sale of new detached housing, while also offering a wide range of real estate services including condominium planning and sales, building and civil engineering contracting, used housing renovation and commercial real estate sales, renovation work, and real estate brokerage. Its main customers range broadly from first-time home buyers (Detached Housing Business) to high-net-worth individuals and real estate investors (Real Estate Distribution Business), and it operates across four domestic regional markets: Chubu, Greater Tokyo, Kansai, and Kyushu. As part of its long-term vision "VISION2030," the company has set targets of ¥100 billion in net sales, ¥6 billion in ordinary profit, and ROE of 8% or higher.

Business Model

With the Detached Housing Business (accounting for roughly 66% of sales composition) at its core, the group secures cost competitiveness by internalizing land development and construction through in-house contracting companies. In the Real Estate Distribution Business, the company captures gross profit by adding value through renovation of used properties. The Condominium Business maintains high profit per unit by limiting operations to prime locations centered on Nagoya City. Each segment shares customers and know-how with one another, and the company aims for a comprehensive real estate service model that incorporates peripheral services such as renovation and brokerage.

Company Strengths

In FY2025 (ended August 2025), the Real Estate Distribution Business posted net sales of ¥12,537 million (up 95.9% year on year) and operating profit of ¥770 million (up 101.1% year on year), doubling. Steady sales of Used Sectioned Condominiums (Renovated for Sale) centered on the greater Tokyo area and high-value property transactions in central Tokyo's 23 wards drove growth. The Group continues to actively allocate management resources to this segment as a priority growth area.

The three long-established contracting companies—J Techno, Kose Koumuten, and Udohira Koumuten—have brought construction and civil engineering work in-house, creating synergies across the Group. In FY2025 (ended August 2025), the General Contracting Business achieved net sales of ¥7,082 million (up 26.8% year on year) and operating profit of ¥227 million (up 12.0% year on year). An order backlog of ¥4,891 million is expected to support sales in the next fiscal period.

Through a strategy limited to prime locations centered on Nagoya City, the Condominium Business achieved a significant improvement in FY2025 (ended August 2025), with operating profit of ¥142 million (up 1,145.4% year on year). Profit per unit was maintained at planned levels while sales costs were also reduced. The order backlog grew to ¥395 million (up 1,427.5% year on year), which is expected to contribute to deliveries in the next fiscal period.

ENVALITH's Perspective

Cumulative sales for the first three quarters of FY2026 (ending March 2026) were ¥41,033 million (down 5.7% year on year), continuing the revenue decline, but operating profit surged to ¥408 million (up 761.8% year on year), a significant improvement. The main driver was the Condominium Business, which turned from an operating loss of ¥1,144 million in the same period last year to an operating profit of ¥9 million. As shown by the improvement in gross profit margin (from ¥5,612 million in the same period last year to ¥6,124 million this period), the qualitative improvement in the earnings structure is progressing, which can be positively evaluated.

The Real Estate Distribution Business saw a sharp deterioration due to the reaction from a concentration of high-value property sales in the same period last year, with cumulative sales for the first three quarters at ¥5,856 million (down 12.5% year on year) and an operating loss of ¥45 million (compared to an operating profit of ¥691 million in the same period last year). This exposed the structural issue of high dependence on the timing of high-value property sales, leading to large quarter-to-quarter earnings fluctuations. While the buildup in the order backlog is a positive factor, diversification of the property portfolio is needed for stable earnings contribution.

The full-year earnings forecast remains unchanged at sales of ¥72,000 million (up 3.9% year on year), operating profit of ¥1,900 million (up 44.6% year on year), and net income of ¥1,200 million (up 87.7% year on year). Against cumulative operating profit of ¥408 million for the first three quarters, the full-year forecast of ¥1,900 million implies that the fourth quarter alone must record operating profit of ¥1,492 million, highlighting a pronounced skew toward the second half. Whether the buildup in the Condominium Business's order backlog translates into deliveries in the fourth quarter will be key to achieving this target. In addition, interest expenses increased from ¥256 million in the same period last year to ¥362 million, and attention should also be paid to the rising cost of interest-bearing debt.

Growth Strategy

Under the Medium-Term Management Plan 2028, the company is pursuing improved profitability and the construction of a comprehensive real estate service structure.

As a basic policy of the Medium-Term Management Plan 2028, the company has set out improved profitability and a return to sales and profit growth. In the cumulative third quarter, the Sales Business turned from an operating loss of ¥1,144 million in the same period of the previous year to operating profit of ¥9 million, confirming the initial effects of the measures implemented. The backlog of orders received of ¥18,212 million (131.7% year-on-year) is expected to support sales recognition from the second half onward.

Starting from the first quarter, the former Detached Housing Business and Condominium Business were integrated into the "Sales Business," and the General Contracting Business was renamed the "Contracting Business." This represents a shift to a performance management structure that appropriately reflects the actual state of business activities. Within the scope of consolidation, Kose Koumuten Co., Ltd. was excluded (a gain of ¥370 million on the sale of subsidiary shares was recorded as extraordinary income).

The company is cultivating Other Businesses such as Renovation Work and Real Estate Brokerage, expanding its range of real estate products and services beyond the Sales, Distribution, and Contracting businesses. Cumulative net sales for Other Businesses in the third quarter were ¥1,152 million (down 10.1% year-on-year), a decrease, but operating profit of ¥224 million was maintained, indicating continued contribution to earnings.

In the Real Estate Distribution Business, which handles used housing renovation and Commercial Real Estate Sales, the company plans to expand its business area into the Kansai and Kyushu regions. The order backlog has expanded rapidly to 208.0% year-on-year, and the key challenges are reducing reliance on high-value properties and building a stable earnings contribution structure.

Last updated: July 17, 2026