KATITAS Co., Ltd. (8919) Stock Price

Kachitas operates primarily in the used home renovation business. The company operates 149 stores nationwide (as of March 31, 2025) and handles the entire process of sourcing, purchasing, renovating, and selling used homes on a community-based level. Kachitas has a track record of over 90,000 cumulative sales and sold 7,372 properties in the fiscal year ended March 2025.

Kachitas sources used homes through two methods: "direct purchase" and "auction purchase." The company focuses particularly on direct purchases, which accounted for 98.3% of sourcing volume in the fiscal year ended March 2025. In direct purchases, properties are inspected and purchase prices are determined based on appropriate valuations. The company also conducts joint inspections with renovation partners and termite inspection companies to improve quality and profitability.

For renovations, Kachitas replaces fixtures such as kitchens and bathrooms, updates wallpaper and flooring, and performs exterior painting to provide clean and comfortable renovated homes. To ensure renovation quality, the company strengthens relationships with renovation partners and works to reduce material and labor costs.

Sales are conducted through two channels: "direct sales" and "brokered sales." Direct sales reach buyers through Kachitas' website and real estate portals. Brokered sales utilize real estate agencies to reach customers nationwide. In the fiscal year ended March 2025, direct sales accounted for 55.2% of sales volume and brokered sales for 44.8%.

Kachitas primarily handles older single-family homes in regional cities built 20 to 40 years ago, with renovations aimed at ensuring durability and improving appearance. The company targets regional cities with populations between 50,000 and 300,000, operating in markets where competitors have difficulty entering. Through 135 stores nationwide, the company secures sourcing channels and conducts community-focused sales activities.

Reprice handles relatively newer used homes in suburban areas and sells them after light renovations. The company primarily handles homes built 10 to 30 years ago and has established a business model that shortens renovation periods to improve inventory turnover. Target areas include suburbs of the three major metropolitan areas and city centers of regional cities with populations between 300,000 and 500,000.

Kachitas aims to become "Japan's company that enriches people's lives the most," with a mid-term target of achieving 20,000 annual sales transactions by 2035. To reach this goal, the company formulated its Fourth Medium-Term Management Plan (fiscal years ending March 2026 through March 2028) and announced it in May 2025.

Kachitas recognizes that demand for affordable, high-quality housing is growing against the backdrop of Japan's aging population, declining birth rate, and population concentration in urban areas, which are increasing vacant housing problems. In this environment, the company prioritizes stable expansion of its capacity to supply quality refurbished used homes, rather than pursuing rapid growth.

The Fourth Medium-Term Management Plan targets 10,000 annual sales transactions to realize the vision "Sell your home to Kachitas. Buy your home from Kachitas." The company also sets targets of 20 billion yen in operating profit, ROE of 20% or higher, and a dividend payout ratio of 50% or higher, promoting management focused on capital efficiency.

Core strategies include increasing and developing sales personnel, improving productivity, diversifying renovation offerings, diversifying procurement channels, pursuing M&A, and improving earnings stability through repricing. These initiatives will expand the company's serviceable areas for used home transactions nationwide and drive business growth.

Kachitas prioritizes sustainability management, reducing CO2 emissions and timber consumption through its used home renovation business and contributing to environmental protection. The company also addresses vacant housing problems in regional cities and contributes to community revitalization, pursuing sustainable growth.

The company places importance on securing and developing talent, recruiting skilled personnel nationwide and enhancing in-house education and training programs. These efforts strengthen the organization supporting business growth by advancing employee capabilities.

Kachitas maintains strong relationships with financial institutions to ensure stable funding. The company also strengthens internal management systems and compliance to establish a framework for sound management.