(7172) Stock Price

Japan Investment Adviser (JIA) primarily operates a financial solutions business, with operating lease business comprising the majority of its revenue. This business, known as Japanese Operating Lease (JOL), provides returns to investors through leasing assets such as aircraft.

JP Lease Products & Services (JLPS) plays a key role in JIA's operating lease business. JLPS acquires lease assets and operates the leasing business through anonymous partnerships. Investors contribute capital through anonymous partnership agreements and receive their share of profits and losses from the leasing operations.

JIA also operates an environmental energy business, primarily generating revenue through fees and electricity sales related to solar power generation projects. JLPS acquires and operates solar power generation facilities, raising capital from investors to expand operations. The company generates revenue by selling electricity to power companies.

In the real estate business, JIA structures and sells fractional real estate trust beneficiary rights products, earning fee-based revenue. JIA's subsidiaries acquire real estate and manage it through trusts. Investors acquire trust beneficiary rights and receive returns from real estate operations.

Additionally, JIA operates a private equity investment business. The company invests in unlisted companies and seeks capital gains through IPOs and M&A transactions. It operates in two forms: principal investment, where it invests directly, and fund management, where it raises capital from investors to form investment funds.

Japan Investment Advisors (JIA) is committed to contributing to society through finance and aims to unlock the potential of mid-sized and small-to-medium enterprises that support the Japanese economy. JIA prioritizes creating value for shareholders, customers, business partners, and employees by increasing corporate value and building trust.

JIA announced its medium-term management plan in 2023, with a strategy to evolve its business model by 2026. Specifically, the company aims to reduce its dependence on operating lease business and expand revenue from other business segments. This diversification of the business portfolio is intended to achieve stable growth.

JIA's core businesses are operating lease, environmental energy, real estate, and private equity investment. Through these operations, JIA seeks to acquire diverse investors and expand its customer base. In particular, the company leverages resources developed through aircraft leasing to expand asset management operations.

By 2026, JIA targets net income of 25 billion yen and a net profit margin attributable to parent company shareholders of 36%. To achieve this, the company aims to increase the revenue share from non-operating lease businesses to approximately 30%, achieve ROE of 25% or higher, and raise the dividend payout ratio to 50% or above.

To address risks from economic contraction due to Japan's aging and declining population, JIA provides diverse services that support mid-sized and small-to-medium enterprises in solving management challenges. This approach aims to simultaneously address social issues and enhance corporate value.