【JP:296A】Stock Price

Reiwa Accounting Holdings is a company that operates primarily through ongoing consulting services related to accounting operations. Beyond simply outsourcing accounting work, the company provides comprehensive support—from developing accounting policies and assisting with financial closings to standardizing and streamlining accounting operations.

The company's main clients are listed companies, major corporations, REITs, SPCs, and medical institutions that require organizational capabilities and specialized expertise. Revenue is composed of approximately 83% from ongoing consulting (Long) and approximately 16% from one-time specialized projects (Short), with recurring contracts contributing to revenue stability.

The company's business is divided into four main segments: ongoing consulting (accounting policy development, journal entry and closing support, etc.), one-time specialized projects (due diligence, IPO support, M&A support, etc.), education and staffing services for accounting professionals, and accounting software development and sales. In the education business, the company operates practical training schools and corporate training programs, creating a pipeline to supply trained talent to companies through staffing and recruitment services. Recently, the company has been advancing software development through a subsidiary established in 2025, focusing on expanding system product offerings.

The company is positioning recurring consulting revenue as the core driver of growth, aiming for stable and sustainable sales expansion. Currently, long-term contracts account for approximately 83% of sales, while one-off specialized projects represent about 16%. As of March 2025, the company serves 173 client groups. The company has set medium to long-term targets for annual revenue growth rate and operating profit margin, and monitors contract retention rates and headcount on a monthly basis. It is also improving profitability through regular reviews of existing contracts and price negotiations.

The company is prioritizing investment in human resources and high-value-added services. By specializing in clients requiring organizational capability and expertise—such as listed companies, REITs, and healthcare institutions—it leverages competitive barriers and differentiates itself through dedicated account management for each client. Average annual revenue per client group is approximately 25.8 million yen, approximately 43.1 million yen for the top 100 clients, and approximately 214.2 million yen for the top 10 clients. The company expects higher unit prices through service expansion with existing customers and acquisition of top-tier clients. On the talent front, it is expanding new graduate recruitment, strengthening referral and alumni hiring, and developing professionals through internal training.

For new market development and business expansion, the company plans to broaden its customer base domestically and internationally by leveraging existing strengths. Domestically, it is focusing on untapped potential among 3,964 listed companies and 23,159 group companies, targeting sales growth through increased client numbers and higher average revenue per client. Internationally, it provides services to Japanese companies operating locally through its subsidiary HSK VIETNAM AUDIT (approximately 70 employees, of which about 20% hold accounting qualifications), creating business opportunities through coordination with domestic projects. By building a cycle where talent developed through its education business is hired internally or placed through staffing and recruitment services, the company is converting the structural challenge of talent shortage into an opportunity for business expansion.

On technological innovation, the company is improving productivity through both tools and talent. With Miracle Kaikei Co., Ltd., established in April 2025, the company plans to convert existing operational tools into software, first deploying them internally to enhance efficiency, then selling to clients. While depreciation expenses will arise from development investment, the company plans to recover costs through operational efficiency gains. Simultaneously, it is investing in developing talent capable of leveraging AI and various software solutions, creating a virtuous cycle of tool advancement and strengthened human capital.