MFS, Inc. (196A) Stock Price

MFS is a company that provides online services for mortgages and real estate investment using technology and data analytics. The company operates "Moge Check" on web and mobile app platforms, proposing borrowing capacity and optimal loan products to users while streamlining the application review and refinancing processes online. The company supports user decision-making through chat support, interest rate forecasting, and property value projections.

Key customers include home buyers, real estate investors, partner real estate companies and insurance agencies, and banks and their advertising agencies. The company's revenue primarily consists of application fees received from banks and advertising agencies when users submit mortgage applications, the difference between referral fees from partners, and success-based commissions from real estate brokerage and refinancing transactions.

The business is divided into two main segments: the "Moge Check Business" and the "INVASE Business." The Moge Check Business expands application volumes through mortgage proposals, quick application processing, and member information services. The INVASE Business generates revenue through investment property brokerage, real estate investment loan intermediation, property referrals via vouchers, brokerage commissions at closing, and success-based rewards from refinancing, with intermediary operations handled by consolidated subsidiaries.

The company operates under the mission to "empower users through the power of technology and analytics," aiming for sustained revenue growth and operating profit. Key performance indicators include revenue and operating profit, along with metrics such as service site traffic, member registrations, mortgage application volumes and growth rates, fees per application, and customer acquisition costs. Building on achieving profitability in the fiscal year ending June 2025, the company is pursuing further revenue expansion. Market conditions are favorable, with domestic new mortgage lending increasing approximately 4.3% from 19.4 trillion yen in 2018 to 20.3 trillion yen in 2023. The company views the demand foundation as solid, supported by factors such as the extension of mortgage tax deductions (applicable to purchases through 2025, with extended deduction periods expected to stimulate demand through 2038).

As priority investment areas, the company is concentrating resources and talent on strengthening its core MogeCheck business and INVASE business. Specific initiatives include enhancing online advertising, improving service user flows, expanding awareness through seminars, and broadening partnerships with real estate companies and insurance agencies (partnerships expanded from July 2022, with insurance agency collaboration beginning in 2023). The company aims to increase application volumes, voucher usage, refinance approvals, and investment property contracts. Competitive advantages include proprietary patent technology (Patent No. 7366355) for quantitatively calculating individual creditworthiness and providing customized proposals, batch quick applications to multiple banks, and chat support combining human agents with AI. The company leverages its strength in connecting users from inquiry through actual application and settlement, differentiating itself from advertisement-based comparison sites.

Regarding new market development and business expansion, the company prioritizes deepening existing channels by increasing partnerships with real estate companies to expand customer touchpoints. On the INVASE side, the company plans to strengthen its sales structure and implement voucher initiatives to broaden the pipeline from property introduction to contract completion, while expanding brokerage fees and success-based commissions. To support capital needs accompanying business expansion, the company is considering borrowing from financial institutions. Through increased hiring to expand development and sales personnel and marketing investments, the company aims for sustained profitability driven by revenue growth.

In technology innovation, the company is investing in AI, cloud infrastructure, and user-friendly design across web and mobile platforms. Specific initiatives include advancing credit analysis through big data analytics and enhancing interest rate prediction capabilities. Implementation measures include expanding development staff, improving UI/UX to enhance customer experience, and strengthening information security and internal controls. Given the business's handling of personal credit information, the company is prioritizing risk mitigation. Through these efforts, the company aims to deliver high-value services that increase utilization rates and fee income, thereby improving operating profit margins.