Cados Corporation (211A) Stock Price

Cados Corporation contributes to community development through two core business pillars: construction and real estate. The company primarily designs and constructs retail stores in Yamaguchi and Hiroshima prefectures, providing end-to-end services from site proposals and design through construction to tenant placement.

The company's main customers are national retail and food service chains, with store-related construction work forming the core of its revenue. While construction orders are the primary revenue driver, the company also generates real estate income from property rentals and sales. For the fiscal year ending July 2025, construction revenue was ¥5,883 million and real estate business revenue was ¥1,703 million.

In its construction business, the company acts as the primary contractor, coordinating with subcontractors to handle new store construction and renovations. The real estate business generates revenue through multiple channels: "build-and-lease" arrangements where the company leases land, constructs buildings, and rents to tenants; rental income from owned properties; parking lot operations; and electricity sales from solar power generation. By combining both businesses through a matching function, the company has built a business model that secures continuous construction orders and long-term rental income.

The company has set "a company that will last 100 years" as its long-term vision and aims to achieve early sales of 10 billion yen and a market capitalization of 10 billion yen. In its current business composition, construction is the main business, with construction sales of 5,883 million yen and real estate sales of 1,703 million yen for the fiscal year ending July 2025. The company maintains a real estate income ratio of approximately 20% to secure stable high profit margins while pursuing growth. It is improving construction cost management and productivity per employee, and working to enhance shareholder value in line with financial targets including a 40.0% equity ratio, 10.0% return on equity, and a 30.0% dividend payout ratio.

In priority investment areas, the company's proprietary matching system "Cados LAN System" that connects landowners with tenant companies serves as its core differentiator. The company provides added value beyond construction contracting by comprehensively producing business plans tailored to land characteristics, from design and construction to tenant placement. In real estate operations, the company has multiple revenue models including "build-and-lease" arrangements where it leases land, constructs buildings, and leases them out. It currently holds 97 rental properties and invested 834 million yen during the fiscal year. For its suburban commercial complex "Cados Town," the company has secured land in Hofu and Ube cities and aims to increase customer traffic by attracting multiple retail chains.

For new market development, the company plans to expand its operating area from the Sanyo region (Yamaguchi, Hiroshima, and Okayama prefectures) to northern Kyushu (around Fukuoka), based in Yamaguchi and Hiroshima. The company particularly prioritizes demand in Hiroshima and Fukuoka, targeting 13 cities with significant growth potential among 22 cities with populations exceeding 100,000. To accelerate regional expansion, it leverages business partnerships with local real estate companies; as of the fiscal year-end, it has partnerships with 19 companies across 8 cities and aims to secure at least one partner per city going forward. To address rising construction material costs and labor shortages, the company is stabilizing order intake, strengthening coordination between sales and construction divisions, and optimizing site supervisor placement and talent development, targeting an increase from 108 million yen in annual completed construction value per employee.

In technology innovation and environmental initiatives, the company is advancing both productivity improvements and employee skill development. The company implements a standard retirement age of 65 with individual work continuation programs and qualification support to retain and develop talent. For electricity, in addition to utilizing its own solar power generation, the company has introduced "Yamaguchi Buchi Eco Denki" powered by hydroelectric generation in Yamaguchi Prefecture and renewable energy sourcing with non-fossil fuel certificates to prepare for increased electricity demand accompanying business expansion. Additionally, the company is strengthening its financial foundation through diversified funding sources to avoid dependence on specific financial institutions and by building internal reserves.