AINAVO HOLDINGS Co., Ltd. (7539) Stock Price

Ainabo Holdings operates as a pure holding company, providing management guidance to group companies and leasing real estate. Its consolidated subsidiaries handle the sales of tiles and housing-related equipment, along with associated construction work. The company's core business centers on tile sales and installation, interior finishing, stone work, plumbing, and air conditioning, sanitation, and gas installation services.

The company's primary customers include homebuilders and construction contractors in the single-family home market, as well as developers and construction firms handling large-scale projects such as office buildings and condominiums. Individual homeowners and real estate owners are also served. Revenue primarily comes from sales of tiles and equipment, along with construction contract fees from on-site work. Management fees from the holding company and real estate rental income also contribute to overall revenue.

The business is divided into two main segments: "Single-Family Housing Business" and "Large-Scale Projects Business." The former focuses on tile sales and installation for residential homes, while the latter handles tile work and a broad range of construction services including building systems, air conditioning, and sanitation equipment for office buildings and condominiums. The group operates multiple subsidiaries handling sales, construction, and logistics, enabling end-to-end service delivery from design and construction to material supply.

Aina Bo Holdings aims to achieve revenue of 98.5 billion yen (target for fiscal year ending September 2026) and an operating profit margin of 2.1% in the medium term. For the long term, the company is building a management foundation targeting a stable operating profit margin of approximately 2.6% and a return on equity (ROE) of 8%. The company leverages its core tile sales and installation services, along with residential equipment, air conditioning, and sanitary engineering work, to serve a broad customer base ranging from single-family homes to large-scale projects such as office buildings and condominiums, thereby stabilizing and growing revenue.

Key investment areas include expanding product lines such as window frames, exterior materials, wood-based building materials, air conditioning equipment, and energy-efficient products, as well as strengthening on-site construction capabilities. The company enhances cost competitiveness by consolidating suppliers and subcontractors and standardizing construction management systems. It differentiates itself through the group's strength in providing end-to-end services from design through construction to logistics. Additionally, the company is improving inventory and delivery efficiency by transferring metropolitan logistics functions to a group logistics specialist company (implementation scheduled for October 2025).

For new market development and business expansion, the company prioritizes strategic M&A to complement sales areas and product offerings. Concrete measures include facility consolidation, such as the integration of Abelco Osaka Branch and Imamura (scheduled for October 2025) in the Kansai region. The company is focusing on acquiring new customers and aims to expand orders for large-scale projects in addition to the single-family home market, while realizing group synergies early.

Regarding technological innovation, the company has begun developing AI-integrated systems to improve operational efficiency and strengthen data coordination in construction management and procurement. On the human resources front, the company is promoting unified personnel and training systems, facilitating inter-group personnel exchanges, and actively recruiting mid-career and foreign workers. As of September 2025, the company has 28 employees holding residence status for technical, human resources, and international business activities, implementing measures to enhance competitiveness in both technical and on-site capabilities.