TSUCHIYA HOLDINGS CO., LTD. (1840) Stock Price

Tsuchiya Holdings is a holding company engaged in residential design, construction, sales, renovations, real estate buying and selling, brokerage services, and rental property management. The company group's core business centers on building and selling custom-built and proposal-based homes, while also handling transactions in condominiums, pre-owned homes, and residential land.

Primary customers include individuals seeking new homes, existing homeowners wanting renovations, condominium buyers, and rental tenants. The company generates substantial revenue from home construction and sales, while maintaining multiple revenue streams including renovation work income, brokerage commissions, rental income, and renewable energy sales revenue.

Operations are divided into four business segments: residential, renovation, real estate, and rental. The residential business handles custom home and rental housing construction and sales, while the renovation business specializes in remodeling work. The real estate business manages the buying, selling, and brokerage of condominiums, pre-owned homes, and land. The rental business generates revenue through property management, rental income, and power generation sales.

The company has extended its medium-term management plan through October 2028, targeting revenue of 40 billion yen, operating profit of 1.6 billion yen, and ROE of 8.0% in the final fiscal year. This revision reflects external factors such as prolonged building permit review processes following amendments to the Building Standards Act. The company is pursuing growth by setting clear numerical targets for profit margins and return on equity. As its corporate mission, the company aims to "improve quality of life (QOL) by 10%" and is building a stable revenue foundation by capturing demand for sustainable, high-value-added housing.

Priority investment areas focus on core housing technologies including earthquake resistance, thermal insulation, and airtightness. The company is particularly focused on technology integration through a capital and business alliance with Sekisui House. It differentiates itself by combining high-insulation and high-airtightness technologies developed in heavy snowfall and cold regions with its partner's earthquake-resistant design and structural expertise. Beyond custom homes, the company is strengthening its revenue structure by leveraging multiple income streams—including renovations, real estate brokerage, rental management, and power sales—to reduce dependence on housing sales fluctuations.

For new market development and business expansion, the company has clarified its strategy to reclaim the "No. 1" position in Hokkaido and establish Sendai-centered Tohoku as its second headquarters. Specifically, it will pursue joint residential developments with Sekisui House in Hokkaido, begin selling products using the "DJ (Direct Joint) construction method" starting in Sapporo and surrounding areas, and progressively expand collaborative construction projects (SI-COLLABORATION) across six Tohoku prefectures from Sendai. Through these initiatives, the company aims to expand its supply capacity and strengthen sales channels and on-site capabilities.

Regarding technological innovation, the company pursues the principle of "beyond cutting-edge." It is advancing full-scale deployment of the DJ construction method and co-creation of core technologies. The DJ method directly connects foundations and columns, enhancing earthquake resistance performance and design flexibility for large openings. The company plans to establish an in-house system covering structural calculations, precut processing of structural materials, and construction. To meet rising energy efficiency standards, it is investing in advanced insulation and airtightness technologies and product development that integrates design with structure, aiming to establish long-term competitive advantage.