A-tie Co.,Ltd. (369A) Stock Price

Etai operates a temple consulting business centered on perpetual care graves for temples. The company provides a one-stop service covering the planning and construction of perpetual care graves, recruitment of buyers, site guidance, contract procedures, maintenance management, and funeral arrangements. The company promotes "easy-to-start and easy-to-maintain" grave solutions.

The company's primary customers are partner temples and grave users. Revenue is primarily generated from fees under recruitment agency contracts with temples. By bearing the costs of constructing perpetual care graves, advertising, and operations, the company secures high fee rates and achieves stable sales through region-specific customer acquisition.

The business operates as a single segment focused on temple consulting, divided into (1) perpetual care grave recruitment agency services and (2) perpetual care grave area management services, customer acquisition proposals for temples, and funeral-related services. The company offers multiple types of perpetual care graves, including commingled graves, collective individual graves (apartment-style), detached-style graves, and tree burial options. Its offerings are characterized by clear pricing regardless of religious sect or denomination and a structure requiring no annual maintenance fees.

The company aims to become the leading name in the cemetery business by focusing on two growth drivers: increasing the number of partner temples and maintaining or improving revenue per temple. Current performance metrics for the fiscal year ending August 2025 show contract value of 4,058 million yen, revenue of 2,929 million yen, 92 partner temples, and approximately 34 million yen in revenue per temple. The company targets exceeding these key performance indicators (KPIs). Based on long-term agency contracts (typically 10 to 20 years), the company plans to secure stable revenue by expanding perpetual memorial graves, improving customer visits, and increasing contract conversion rates.

Priority investment areas include temple partnership development, talent acquisition and local operations, advertising, and construction costs for grave monuments. By bearing these costs, the company makes attractive proposals to temples and secures high commission rates. Differentiating itself from traditional stone monument businesses through design-focused approaches and cost reduction, the company leverages a one-stop service model combining online and offline advertising—including portal sites, company websites, newspaper inserts, and television commercials—alongside on-site staff guidance. The company prioritizes service quality investments while capitalizing on its competitive advantage in a market with few rivals.

For new market expansion, the company pursues a concentrated regional strategy centered on the Kanto area, targeting approximately 6,300 accessible temples across Tokyo, Saitama, Chiba, and Kanagawa prefectures. In existing regions, the company expands into underserved areas and adds capacity at current partner temples, basing partnership decisions on sales performance and anticipated expansion space. The company has begun expanding into Kyushu, Tokai, and Kansai regions, planning steady growth in temple partnerships and contracts through demographic analysis, competitive assessment, local promotions, and community-focused sales.

For technological innovation, the company employs artificial intelligence (AI) for data-driven decision-making, including selecting potential partner temples and forecasting sales performance. Specifically, the company has developed a system that analyzes existing temple sales data, location, and market population to evaluate profitability based on an annual target contract value of approximately 40 million yen. Additionally, the company invests in optimizing online advertising, strengthening customer management systems, and enhancing internal controls and compliance frameworks to build organizational and technological foundations capable of supporting business expansion.