ENVALITH
ホウライ株式会社 logo

HORAI Co.,Ltd.

9679・Standard Market・Services

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ホウライ株式会社 logo
HORAI Co.,Ltd.9679

Business

HORAI Co., Ltd. is a diversified conglomerate founded in 1928 and listed on the Standard Market of the Tokyo Stock Exchange. The company operates four businesses: insurance agency operations (non-life and life insurance), leased real estate operation and management, dairy farming, dairy products manufacturing and tourist facility operation at Senbonmatsu Farm in Nasu-gun, Tochigi Prefecture, and operation of two golf courses. Major customers vary widely by segment: individual and corporate clients in the Insurance Business, tenants and residents in the Real Estate Business, tourist visitors and dairy product consumers at Senbonmatsu Farm, and golf course users in the Golf Business. Operating revenue for FY2025 (ending September 2025) was ¥6,111 million, with Senbonmatsu Farm having grown into the largest segment, accounting for approximately 46% of the total.

Business Model

The revenue structure is broadly divided into two layers. The first layer, serving as a stable revenue base, consists of the nearly fully occupied Leased Real Estate (Office/Residential) (operating revenue ¥1,292 million, gross operating profit ¥759 million) and the Non-Life Insurance Agency Business (operating revenue ¥1,173 million, gross operating profit ¥458 million), both generating stable cash flow. The second layer represents growth investment areas, promoting the expansion of tourism and external sales through renewal investment at Senbonmatsu Farm, along with measures aimed at turning the Golf Business profitable. Operating cash flow remained solid at ¥938 million, and the company continues to pursue growth investments while covering capital expenditures of ¥729 million with internal funds.

Company Strengths

The final-year targets of the "Medium-Term Management Plan 2026" (operating income of ¥600 million, EBITDA of ¥1,000 million) were achieved one year ahead of schedule in FY2025 (ending September 2025). Operating revenue of ¥6,111 million (+¥311 million vs. plan), operating income of ¥616 million (+¥66 million vs. plan), and EBITDA of ¥1,069 million (+¥69 million vs. plan) all exceeded the plan across every metric.

The Real Estate Business holds segment assets of ¥12,179 million, with the occupancy rate of Leased Real Estate (Office/Residential) remaining stable at near-full occupancy. Rental income from U-Residence Nishioi, acquired in November 2023, also contributed, securing operating revenue of ¥1,292 million and gross profit of ¥759 million (margin of approximately 58.7%). Including land leasing income from solar power operators in the Senbonmatsu area (Land Leasing (Solar Power Generation)), this remains a stable source of cash generation.

Following the renewal and reopening of the Farm Shop and Farm Restaurant in October 2024, and the grand opening in April 2025 with the new addition of the "Onsen Jabu-jabu Pond" and "Senbonmatsu Terrace," visitor numbers increased by approximately 1.5 times year on year. Operating revenue in the Senbonmatsu Farm segment reached ¥2,798 million, up ¥549 million year on year (+24.4% year on year), recording over 1 million visitors.

ENVALITH's Perspective

In the interim period of FY2026 (ending March 2026), operating revenue was ¥3,051 million (progress rate of 49.2% against the full-year forecast of ¥6,200 million), operating profit was ¥290 million (46.0% against the full-year forecast of ¥630 million), ordinary profit was ¥343 million (47.0% against the full-year forecast of ¥730 million), and interim net profit was ¥223 million (44.6% against the full-year forecast of ¥500 million). Compared to the same period of the previous year, operating profit rose +81.5%, ordinary profit +59.7%, and interim net profit +85.6%, representing substantial growth at every profit stage. There is no revision to the full-year forecast, and there is room for upside depending on progress in the second half.

In the Golf Business, operating revenue for the interim period of FY2026 (ending March 2026) was ¥375 million (up ¥19 million year-on-year), while gross operating loss widened to ¥100 million (a deterioration of ¥36 million year-on-year). The main causes were increases in personnel costs, course maintenance, and facility renovation expenses. The single-rider fairway-accessible golf carts introduced in February 2026 have generated media exposure effects, but the key question is whether this can drive sufficient increases in visitor numbers and spending per customer to absorb the rising costs. As an external factor, solid underlying demand for golf provides a tailwind, but improvement in the fixed-cost structure is essential.

Senbonmatsu Farm achieved revenue growth of roughly 1.4 times year-on-year in the interim period, but due to costs associated with facility renovations, gross operating profit remained at ¥113 million (up ¥78 million year-on-year), and profitability is still at a low level. Key factors for improving profitability include whether the increase in visitor numbers will continue after the renovation effect fades, the profitability of the six Off-Farm Soft Serve Ice Cream Shop locations, and whether the declining trend in External Sales to local mass retailers can be reversed. The transition to the third phase toward the 100th anniversary of founding in 2028 will serve as the medium- to long-term evaluation criterion.

Growth Strategy

Four pillars: establishing Senbonmatsu Farm as a tourism brand hub, expanding external sales, achieving profitability in the Golf Business, and strengthening the real estate portfolio

The October 2024 renovation of the farm shop and farm restaurant, together with the April 2025 grand opening, increased visitor numbers by approximately 1.4 times year on year. Awareness continues to be enhanced through increased SNS and media exposure and regional collaborative events. Operating revenue for the interim period reached ¥1,392 million, and initiatives are progressing steadily.

The sixth store opened in November 2025 at AEON MALL Hanyu in Hanyu City, Saitama Prefecture. Existing stores continue to perform well, driving revenue diversification through the expansion of off-farm sales channels. This also serves to offset the decline in External Sales to local mass retailers.

In February 2026, single-rider golf carts capable of entering fairways were introduced at Golf Course (HORAI Country Club) to differentiate the offering. Efforts to expand customer acquisition are being promoted through enhanced information dissemination via SNS and email newsletters, winter-only plans, and attracting university golf club training camps. However, the interim gross operating loss was ¥100 million, a deterioration of ¥36 million year on year, and profitability has not yet been achieved.

While maintaining near-full occupancy of Leased Real Estate (Office/Residential), convenience and comfort are being improved through appropriate facility renewal and renovation investments. The benefits of facility investments such as air conditioning equipment renewal implemented in the previous fiscal year continue to be realized. The interim period secured stable revenue with operating revenue of ¥651 million and gross operating profit of ¥389 million.

Last updated: July 17, 2026