Nippon Grande Co.,Ltd. (2976) Stock Price

Nihon Grande Co., Ltd. is a Sapporo-based company that operates a comprehensive real estate business encompassing condominium sales, single-family home sales, rental housing, and condominium management. The company operates under the philosophy of being "kind to people, kind to daily life, kind to the environment, and kind to the future," managing all stages in-house from land acquisition through planning, design, construction supervision, sales, and management.

Primary customers include individual homebuyers, elderly residents, condominium management associations, and real estate investors. Revenue is primarily driven by profits from condominium and home sales. The company's revenue structure is further supported by rental income, management and operation fees, and service income from renovations and brokerage. In addition to its Sapporo-centered operations, the company expanded into the Greater Tokyo Area in November 2020.

The business is divided into three segments: real estate sales, real estate rental, and real estate-related services. In sales, the company offers condominiums under the "Grand Fare" series and single-family homes under brands including "Estetica," "Charcoal House," and "La Regina," providing value-added products featuring ventilation systems, air purification, customizable floor plans, and smart access. In rental operations, the company operates "Grand Wellness," a service-oriented housing facility for seniors, while subsidiaries provide related services including condominium management, insurance brokerage, and renovation and brokerage services to support customer asset management and comprehensive support systems.

The company prioritizes sustained stable growth and has set a clear numerical target of securing a 5% operating profit margin on sales. While facing challenges such as slower sales pace due to rising land prices and construction costs, the company has secured near-term cash flow through maintaining good relationships with banks and raising funds via unsecured bonds. The company aims to increase profitability in its condominium sales business while expanding stock-type businesses such as rental and property management to raise the proportion of stable income. Currently, the company operates 6 senior housing facilities with services and 1 rental apartment building, working to strengthen earnings through maintaining high occupancy rates.

The company is making priority investments to strengthen its land acquisition capabilities and product planning expertise. Specifically, it will deepen networks with financial institutions and existing business partners to expand new sourcing channels, thereby increasing the volume and speed of land information acquisition. The company will focus on creating properties differentiated by location, floor plan, and specifications. It is strengthening planning that directly supports maintaining and improving asset value, such as specifications emphasizing ventilation and air purification functions and flexible floor plans, while continuing customer seminars and exhibitions for existing customers to solidify its remodeling business foundation.

The company plans to develop real estate distribution—specifically property purchase-resale and brokerage—as its next pillar of business expansion. Amid intensifying sourcing competition, the company will acquire property information through strengthened web advertising and direct transactions, while shortening property holding periods from acquisition to sale. In addition to its operations centered in Sapporo, the company has expanded into the Greater Tokyo Area since November 2020 and plans to expand stock income through analyzing and considering the acquisition of income-producing properties.

On the technology front, the company is pursuing improvements in both residential quality and operational efficiency. For residential quality, the company is incorporating technologies that enhance home value, such as ventilation and air purification equipment and improved convenience for entry and exit. For operations, the company is strengthening customer acquisition and information management through web and digital tools, and accelerating decision-making in land acquisition and sales to enhance sourcing competitiveness. The company is also raising digital utilization capabilities through talent development and in-house training, thereby strengthening its integrated system from planning through sales and management.