&Do Holdings Co.,Ltd. (3457) Stock Price

And Do Holdings is a holding company providing comprehensive real estate services. Its core businesses include franchise operations, house lease-back arrangements (allowing homeowners to sell while continuing to live in their homes), financial guarantees, property acquisition and resale, and brokerage services, as well as renovation work. Through a network of company-owned and franchised locations, the company handles the complete process from property sourcing to sales and financing support.

The company's primary customers include small and medium-sized businesses seeking franchise partnerships, new entrants from other industries, individuals buying or selling residential properties, and financial institutions. Revenue comes from multiple streams: franchise fees, system usage fees, brokerage commissions, profits from property acquisition and resale, lease-back rental income, financial guarantee fees, and renovation project contracts.

The company operates its business divided by segment. In the franchise division, it expands its franchisee network by providing customer acquisition expertise, training, and core systems. The house lease-back division offers a mechanism allowing customers to continue living in their homes after sale. The financial division handles collateral evaluation and guarantees for reverse mortgages and similar products, creating synergies across the group by coordinating with sales and renovation operations.

The company has set targets in its medium-term management plan (final fiscal year: June 2030) of operating profit margin of 10% or higher, equity ratio of 30% or higher, and ROIC (return on invested capital) of 6% or higher. It aims to improve capital efficiency and generate stable cash flow. As of June 2025, the company's operating profit margin stands at 4.5%, equity ratio at 25.6%, and ROIC at 2.6%, showing a gap versus targets. The company plans to improve these metrics in the near to medium term by concentrating resources on high-profitability businesses. Specifically, it is restructuring its business portfolio by allocating management resources to priority areas and working to improve capital turnover and profit margins.

The company has designated franchise operations, real estate trading, and financial services as priority investment areas, pursuing differentiation through synergies across these strengths. In franchising, it is expanding the "House Do" brand nationwide, with a final target of building a network of approximately 1,000 domestic stores by strengthening recruitment of franchisees and development in the Tokyo metropolitan area. In real estate buy-and-resell operations, it is establishing direct procurement channels through company-operated outlets such as "Home & Real Estate Buying Specialists," then implementing measures to increase profit margins through renovation and sales.

The company is advancing new market development and business expansion through strengthened franchise development in the Tokyo metropolitan area and support for entries from other industries. As an advertising strategy, it is raising brand awareness through television and radio commercials. To maintain franchisee quality, it is enhancing education and training programs while improving overall chain service levels through replacement of underperforming franchisees. Additionally, the company is expanding its reverse mortgage guarantee business for seniors and leveraging partnerships with new financial institutions and a capital and business alliance with Dai-ichi Life Holdings (concluded December 2024) to develop new products and channels combining real estate and financial services.

The company is strengthening investment in core systems and data infrastructure to address technological innovation. It is centralizing regional property and customer data obtained through its franchisee network and converting this into services. Specifically, it is improving operational efficiency through information transparency, system-based customer acquisition support, streamlined appraisal and credit assessment, and digitalized inventory management. It is also expanding revenue opportunities by linking these processes with leaseback and guarantee business review procedures. Technology investment is being pursued in tandem with human resource development, strengthening both field responsiveness and digitalization.