HORAI Co.,Ltd.【JP:9679】Stock Price

Hourei is a diversified business company engaged in insurance brokerage, real estate rental, sales and brokerage, feed production and dairy cattle farming, dairy product manufacturing and sales, restaurant and tourism facility operations, and golf course management. The company leverages regional assets and operates an integrated business model combining insurance sales, real estate management, raw milk production at its farm, and direct sales.

Key customers include individual and small business insurance policyholders, building and land tenants, real estate transaction customers, tourists and food consumers visiting the farm and facilities, and golf course users. Revenue is generated through insurance commissions and recruitment income, rental fees and real estate sales gains, dairy product sales, food and beverage and facility usage revenue, and golf course fees across its business segments.

Operations are divided into four segments: insurance, real estate, Senbonmatsu Farm, and golf. The insurance segment focuses on property and casualty insurance such as auto and fire insurance, as well as life, term, and cancer insurance sales. The real estate segment handles rental of company-owned buildings and land leasing (including for solar power operators) and brokerage services. The farm segment operates an integrated business of raw milk production, dairy product manufacturing and sales, and tourism facility operations. The golf segment operates multiple golf courses.

Hourei is pursuing a shift toward a growth model centered on enhancing brand value as the second phase of its "Medium-Term Management Plan 2026." The company recently reported operating revenue of 6,111 million yen, operating profit of 616 million yen, and EBITDA of 1,069 million yen, achieving its initial targets of 600 million yen in operating profit and 1,000 million yen in EBITDA one year ahead of schedule. For the fiscal year ending September 2026, the company projects operating revenue of 6,200 million yen, operating profit of 630 million yen, and net income of 500 million yen, and is committed to executing "challenges for further growth" as it approaches its 100th anniversary in 2028.

The company is prioritizing facility renovations, new product development, and strategic investments in human capital. Specifically, Senbon Matsu Farm's restaurant and retail shop underwent renovation and reopened in October 2024, followed by a grand opening in April 2025 after landscape improvements, attracting over one million visitors. These investments support brand development and leverage the company's competitive advantages—integrated operations from raw milk production to direct sales and differentiation through abundant natural assets. In insurance operations, the company is directing resources toward comprehensive proposal capabilities and specialist talent development. In real estate, it is strengthening its portfolio through equipment upgrades and acquisition of quality assets.

For market expansion and business growth, the company plans to accelerate external sales of Senbon Matsu Farm products, expand online sales channels, and open soft-serve ice cream outlets at external locations. By maintaining and increasing tourism traffic to drive direct sales growth and acquiring quality real estate assets and developing new business ventures, the company aims to expand its revenue base. This approach will increase cross-selling opportunities with existing customers and enhance synergies across its diversified businesses—insurance, real estate, food, and facility operations.

Regarding technological innovation, the company will pursue digital transformation (DX) to balance customer satisfaction with operational efficiency. Specific initiatives include digitizing customer management, establishing online sales platforms, upgrading equipment for facility and farm operations to improve labor efficiency and quality control, and investing in employee digital skill development. These efforts will enable rapid decision-making and optimal resource allocation, supporting sustained profitability improvement.