KATITAS Co., Ltd.
8919・Prime Market・Real Estate
Business
KATITAS Co., Ltd. is a pioneer that established the Used Home Renovation and Resale Business in 1998, offering society a 'Fourth Choice' as an alternative to 'newly built homes,' 'as-is used homes,' and 'rental housing.' Through 153 stores nationwide (as of end of March 2026), the company primarily purchases detached houses aged 20 to 40 years in regional cities with populations of 50,000 to 300,000, renovates them (including plumbing replacement, exterior wall repainting, and floor plan changes), and then sells them. The company has a track record of over 100,000 cumulative units sold, with its main customer base being middle- to low-income households and diversifying household compositions. Its consolidated subsidiary Replace handles relatively new properties in suburban urban areas, allowing the group to cover a wide range of areas from regional cities to suburban areas.
Business Model
Revenue is generated through an integrated process of sourcing (purchase/auction) → renovation planning and construction (outsourced) → sales (in-house/brokerage). Of the 9,804 units sourced in FY2026 (ending March 2026), 97.8% were acquired through the Purchase Sourcing Service. Gross profit is secured through cost reductions from standardizing renovation materials and volume discounts, as well as a partner company network that leverages scale advantages. The adjusted gross profit margin was 24.4% (up 0.7 percentage points year on year). Sales opportunities are maximized through a two-channel system consisting of in-house sales (55.1%) and brokerage sales (44.9%).
Company Strengths
The company established its Used Home Renovation and Resale Business in 1998 and had achieved cumulative sales of over 100,000 units as of FY2026 (ending March 2026). It has codified the renovation know-how accumulated through this track record, achieving quality standardization that does not depend on individual staff or partner contractors. The three-party joint inspection (in-house, renovation partner contractor, and termite inspection company) introduced in 2014 has a track record of improving the quality of sourced properties and inventory turnover.
The company operates 153 stores nationwide (as of the end of March 2026) and focuses primarily on regional cities with populations of 50,000 to 300,000, where competitors find it difficult to enter. Its ability to handle risks specific to old detached houses (unclear property boundaries, termite damage, etc.) and its appraisal capabilities in markets with few comparable transactions are the result of years of accumulated experience, and there are many cases of new entrants failing to grow and withdrawing. Brand strength—49.0% company name recognition in areas where TV commercials are aired and the No.1 ranking in unaided recall (12.7%) for "the company to sell a house to"—also forms a barrier to entry.
The company standardizes materials used across the group, achieving procurement at prices below market rates through regular reviews and volume discounts. Stable, continuous ordering with renovation partner contractors also keeps construction costs lower than individual ordering would. The scale represented by purchase sourcing value of ¥90,158 million and 8,380 units sold in FY2026 (ending March 2026) underpins this cost advantage.
ENVALITH's Perspective
Performance Trend
Net sales grew for five consecutive fiscal periods, from ¥101,269 million in FY2022 (ended March 2022) to ¥151,851 million in FY2026 (ending March 2026). Operating income temporarily declined to ¥12,672 million in FY2024 (ended March 2024), before recovering sharply and accelerating to ¥14,222 million in FY2025 (ended March 2025) and ¥18,279 million in FY2026 (ending March 2026). The FY2026 net sales growth rate of 17.2% and operating income growth rate of 28.5% were both the highest over the past five fiscal periods. As an external factor, the sharp rise in new-build housing prices boosted the price competitiveness of Renovated Resale Homes, driving units sold of 8,380 (up 13.7% year on year) and units purchased of 9,804 (up 17.8% year on year). Due to a change in the accounting treatment of consumption tax-related differences, gross profit margin appeared to decline by 0.4 percentage points on the surface, but on an adjusted basis it rose by 0.7 percentage points, indicating that underlying profitability actually improved. ROE rose to 25.2% (from 22.2% in the prior period), and net assets per share increased to ¥678.15 (from ¥584.67 in the prior period), reflecting steady growth in shareholder value.
Growth Strategy
Under the 4th Medium-Term Management Plan, the company aims to achieve annual sales of over 10,000 units, operating profit of ¥23,000 million, and ROE of 25%.
The KGI for units sold under the 4th Medium-Term Management Plan (FY2026–FY2028, ending March 2026 to March 2028) has been set at over 10,000 units (CAGR of over 10.7%). In FY2026 (ending March 2026), the company achieved 8,380 units, and progress toward the target is steady. The policy is to maintain a solid number of inquiries by expanding the target segment for low-priced homes and expanding products aimed at new-build consideration segments.
Following the FY2026 (ending March 2026) results exceeding the target (¥18,279 million), the operating profit KGI under the 4th Medium-Term Management Plan has been revised upward from ¥20,000 million to ¥23,000 million (CAGR 17.4%). The company aims to improve profitability by continuing gross profit improvement measures and enhancing the efficiency of selling, general and administrative expenses. The forecast for FY2027 (ending March 2027) is ¥21,000 million (up 14.9% year on year).
Under the 4th Medium-Term Management Plan, the ROE target has been revised upward from "20% or above" to "maintain a minimum of 20% or above, aiming for 25%." In FY2026 (ending March 2026), ROE reached 25.2%, already achieving the 25% target. The company aims to balance shareholder returns and capital efficiency through a dividend payout ratio of 50% or more and a progressive dividend policy (¥80 per share in FY2026 (ending March 2026), and a forecast of ¥90 in FY2027 (ending March 2027)).
In order to exceed the growth rate targets of the 4th Medium-Term Management Plan, the company has increased its purchase sourcing activity. In FY2026 (ending March 2026), the number of properties purchased was 9,804 (up 17.8% year on year), and real estate for sale and real estate for sale in process expanded to ¥81,203 million, up 32.0% from the end of the previous fiscal year. The company will continue to increase and develop its sales personnel and diversify its renovation planning and sourcing channels.
The company will maintain a dividend payout ratio of 50% or more and a progressive dividend policy throughout the period of the 4th Medium-Term Management Plan. In FY2026 (ending March 2026), the dividend was increased from the initially planned ¥70 to ¥80 per share (payout ratio of 50.2%), and in FY2027 (ending March 2027), a dividend of ¥90 is planned (payout ratio of 50.3%). Total dividends paid are set to expand from ¥4,378 million in FY2025 (ending March 2025) to ¥6,259 million in FY2026 (ending March 2026).
Last updated: July 19, 2026