(2975) Stock Price

Star Mica Holdings is a real estate investment company specializing in the acquisition, renovation, and resale of pre-owned condominiums. The company purchases rental-generating used condominiums, enhances their value through renovation, and sells them to a broad range of consumers. As a holding company, it oversees five consolidated subsidiaries and operates comprehensive real estate-related services.

The company's primary customers are individual investors and owner-occupants purchasing pre-owned condominiums, with revenue centered on gains from property sales. During the period between acquisition and sale, the company also generates rental income, securing stable cash flow through portfolio management. The company creates profit through the spread between acquisition and sale prices, leveraging its expertise in property selection and renovation technology.

The company operates three business segments. In addition to its core Renovation Condominium business, it operates an Investment business providing financing and investment in real estate and operating companies, and an Advisory business handling fee-based services including real estate brokerage, rental management, and consulting. Through these businesses, the company provides comprehensive services spanning from real estate investment to management.

Star Mica Holdings is pursuing a growth strategy aimed at maximizing corporate value under its medium-term management plan "Find the Value 2026." For the fiscal year ending November 2026, the company has set ambitious targets of 84.7 billion yen in revenue, 9.2 billion yen in operating profit, and 5.0 billion yen in net income, with goals of achieving ROE of 12% or higher and an operating margin of 10% or higher. In the fiscal year ending November 2025, the company surpassed its previous record performance, with earnings per share reaching 124.40 yen, substantially achieving its initial medium-term plan targets one year ahead of schedule.

The company's priority investment areas are a return to high-margin owner-change properties and market share expansion in urban centers. Through deepening its presence in the Greater Tokyo area and aggressive expansion into regional core cities, the company is further strengthening its proprietary property valuation methods developed from over 18,000 cumulative purchase transactions. Additionally, through reform structure optimization, the company aims to improve quality and optimize costs, with plans to shorten the sales cycle by 1.5 months to enhance capital efficiency.

In new market development, the company is pursuing high growth exceeding market expectations by entering untapped segments such as high-price-range properties. Through fund securitization initiatives, the company is diversifying its fundraising methods and planning to expand inventory of properties held for sale to over 100 billion yen. In its financial strategy, while maximizing available cash, the company emphasizes balancing disciplined growth investment with shareholder returns, targeting a total payout ratio of 40%.

In technological innovation efforts, the company aims to address social challenges through sustainable management practices. The company is working to promote a housing circulation system through the regeneration and distribution of pre-owned condominiums, advancing the effective utilization of limited environmental resources. The company is also strengthening dialogue with shareholders through IR infrastructure development and website renewal, deploying a comprehensive strategy toward enhancing corporate value.