R.C.CORE CO.,LTD. (7837) Stock Price

Market cap
¥1.5B
P/E ratio
-2.4x
RC Core builds nature-inspired homes like log houses under the BESS brand, serving customers in Tokyo and Kanagawa who want playful living spaces.

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Business Overview

RC Core is primarily engaged in the residential housing business, providing nature-inspired distinctive homes such as log houses centered around the BESS brand. The company handles housing planning, development, and design, and undertakes new construction projects through its direct sales division, primarily in the Tokyo and Kanagawa regions. It also sells component kits through sales partners nationwide.

The company's housing business offers "nature-inspired distinctive homes" including log houses, proposing a lifestyle focused on "enjoyment" rather than mere "living" to customers. The BESS brand provides homes featuring unique design and natural materials, proposing to users a lifestyle of "playful living for the heart and mind."

RC Core also operates a B2B business for corporate clients through its special construction division, providing wooden architecture. The company holds patents for CLT log houses, enabling three-story construction in fire-designated areas, and provides buildings such as lodging facilities and childcare centers to corporate clients.

Additionally, the company operates a timeshare business, offering a system for enjoying vacation home living with ease. Through the Pheasant Villa membership program, it provides a framework allowing customers to own nature-inspired distinctive homes such as log houses on a weekly basis, proposing a new vacation home lifestyle to customers.

Management Policy

RC Core pursues a distinctive growth strategy, creating new markets centered on its BESS business. The company prioritizes "trust first" and converts information into concrete business opportunities to pursue mutual benefits. In particular, through homes utilizing natural materials such as log houses, the company proposes a lifestyle for customers to "enjoy" and pursues user satisfaction.

In its operating environment, as the Japanese economy transitions to growth-oriented economics, RC Core is adapting to changes in the housing market. Against the backdrop of stabilizing building material prices and rising mortgage interest rates, the company faces increased demands for marketing and sales strengthening. RC Core aims to rebuild its BESS business by enhancing customer acquisition through showrooms and social media.

In 2024, RC Core introduced a new management structure to rebuild its BESS business and improve profitability. Under new leadership, the company is enhancing sales quality and strengthening experiential events to expand its BESS fan base. Additionally, it is increasing customer acquisition through social media and new product development.

The company is restructuring its BESS business and promoting fan development through sensory marketing. Through sales of the new product "Sankaku WONDER Maguki no Hako" and the opening of the direct sales location "BESS Kisarazu," the company is deploying a customer experience-focused sales strategy. Furthermore, it is expanding its B2B business and advancing partnerships with local governments and other companies.

As a financial strategy, the company aims to strengthen financial health and improve capital efficiency. It is utilizing funds from the sale of Daikanyama assets to stabilize cash reserves. Additionally, it is building an efficient revenue structure by leveraging a franchise system. This enables business growth with minimal capital investment and improves capital efficiency.

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