AVANTIA CO., LTD.

Business Details

From Q1 of FY2026 (ending August 2026), the former Detached Housing Business and Condominium Business were integrated and reorganized as the "Condominium Sales Business" (Note: labeled here per source segment name). The segment provides housing for actual demand, including sales of new detached housing and land for sale, custom-built housing contracting, and sales of new condominiums for sale. The main customer base is first-time home buyers. The business operates in four domestic market areas—Chubu, Greater Tokyo, Kansai, and Kyushu—and is the largest segment, accounting for approximately 71% of Group revenue.

Recent Overview

Revenue declined 3.8% year-on-year, but operating profit improved significantly and turned positive

For the cumulative nine months of FY2026 (ending August 2026) (September 2025 to May 2026), Condominium Sales Business revenue was ¥29,178 million (down 3.8% year-on-year). Meanwhile, operating profit was ¥9 million, turning positive from an operating loss of ¥1,145 million in the same period of the prior year. Amid persistently high property prices and continued cautious purchasing attitudes among first-time home buyers, orders received and units delivered are gradually recovering, supported by expectations of further increases in mortgage rates and resilient underlying demand. Leading indicators have improved, with orders received up 111.5% year-on-year and order backlog up 131.7% year-on-year. Expenditures for development projects, etc. increased by ¥9,420 million from the end of the previous fiscal year, indicating progress in building inventory in preparation for future revenue recognition.

Key Products

Growth Drivers

• Significant year-on-year increases in orders received and order backlog (orders received +11.5%, order backlog +31.7%), building up future revenue in advance
• Emergence of latent demand driven by expectations of further mortgage rate increases and persistent preference for homeownership
• Promotion of profitability improvement and a return to revenue and profit growth under the Medium-Term Management Plan 2028
• Strengthened proposal capability through diversification of product mix across detached housing, residential land, standardized custom-built housing, and condominiums for sale
• Business expansion across four domestic market areas (Chubu, Greater Tokyo, Kansai, Kyushu) and expanded customer touchpoints through collaboration with regional real estate companies
• Cost control through in-house handling of land development and construction work via group contracting subsidiaries (J-Techno, Udohira Koumuten)

Risks

• Further decline in first-time home buyers' willingness to purchase due to rising mortgage rates
• Continued high property prices due to rising land prices and construction costs, suppressing purchasing appetite for actual demand
• Risk of inventory buildup and cash flow deterioration due to a substantial increase in expenditures for development projects, etc. (¥28,379 million)
• Inflationary pressure and downward pressure on the domestic economy stemming from overseas economic slowdown, trade policy, and geopolitical risk
• Medium- to long-term contraction in new housing demand due to declining birthrate, aging population, and population decline
• Risk of profit pressure from increased selling, general and administrative expenses (up 2.7% year-on-year)