TSUNODA CO.,LTD. (E02261) Stock Price

Tsuno is a diversified company operating two core businesses: real estate rental and bicycles. The company engages in real estate rental operations including rental land, rental retail spaces, and rental apartments, as well as bicycle planning, development, and sales.

The company's revenue structure is built on stable rental income from its real estate division, which provides rental services for land, retail spaces, and apartments, along with property management services. The bicycle division functions as a development trading company, securing revenue through end-to-end services from planning to sales.

The business is divided into two clear segments: the real estate rental division and the bicycle division. The real estate rental division serves as the foundation for long-term stable income, while the bicycle division is positioned as a growth area leveraging product planning expertise and sales capabilities.

Tsunoda has adopted a growth strategy centered on its rental real estate business, pursuing dual tracks of maintaining full occupancy in existing properties and making new investments. The company has established sustainable corporate value enhancement as its fundamental policy, setting a management target of maintaining a gross profit margin of 20% or higher on sales. To achieve this revenue goal, the company is implementing management focused on effective utilization of management resources and establishing a stable revenue structure.

In its investment strategy, Tsunoda continues to evaluate strategic acquisitions of new and used rental apartments. The company also views the future utilization of land and buildings following the expiration of existing business lease agreements as an important growth opportunity. For properties in Komaki City Horinochi and Ogaki City Terauchimachi, the company plans to conduct reviews aligned with changes in the social environment and consumer values to improve profitability. Simultaneously, Tsunoda aims to establish differentiated competitive advantages through rebuilding and reactivating the Tsunoda brand.

In market development, the company is implementing focused strategies in marketing and innovation to address structural industry challenges of oversupply and population decline. The company is working to create new demand by advancing its product planning capabilities that anticipate tenant needs and enhancing its proprietary management capabilities. Through strategic replacement of rental apartments, the company is addressing geographic concentration risk. Even amid intensifying rental rate competition, the company maintains a policy of securing profitability through high-value-added service offerings.

On the organizational front, the company has identified strengthening internal management systems and establishing crisis management frameworks as critical priorities. Beyond merely meeting internal control requirements, the company is advancing management system improvements through organizational restructuring and business process reviews. In parallel, the company is building crisis management frameworks that account for natural disaster risks such as the Tonankai earthquake. Through these initiatives, Tsunoda aims to establish a robust management foundation capable of responding to external environmental changes.