(E03928) Stock Price

KONOIKE Co. is a comprehensive real estate company primarily focused on rental apartment operations. Its flagship product is "GS (Grand Stork Mansion)," a proprietary brand of rental apartments that the company handles comprehensively—from design and construction through management and operations. The company also operates a renovation business that modernizes existing older apartment buildings to meet current market needs.

The company generates revenue from both rental apartment owners and tenants. In its construction business, it undertakes new apartment construction projects commissioned by landowners. In its real estate rental business, it offers the "GSS (Grand Stork System)," which involves long-term leasing of properties the company has built and then subletting them to tenants. This business model secures both construction revenue at the time of building and ongoing rental management income thereafter.

The company's operations consist of three main business segments. The construction segment handles GS apartment construction, design supervision, and renovation of existing properties. The real estate rental segment manages bulk leasing of rental housing, tenant recruitment, property management, and rental of company-owned real estate. The real estate sales and brokerage segment develops and sells apartments and single-family homes, and conducts general real estate brokerage services, providing comprehensive real estate solutions.

KONOIKE Co. is pursuing a growth strategy built on two pillars: construction and real estate rental operations. For the fiscal year ending September 2026, the company targets revenue of 3.195 billion yen and gross profit of 525 million yen. Notably, it plans to significantly expand gross profit in its construction business from 129 million yen in the previous year to 214 million yen. The company has developed a distinctive business model that provides integrated services from construction through rental management, securing both construction revenue and ongoing rental income.

In construction, the company is actively investing in technological innovation. To address industry challenges such as labor shortages and rising material and labor costs, it is promoting "Construction DX" by adopting cutting-edge technologies including information and communications technology, the Internet of Things, artificial intelligence, robotics, and drones. Looking ahead to 2025 as the "Year of Housing Performance Standards," the company is developing products that respond to growing demand for energy-efficient and environmentally conscious equipment, differentiating itself from competitors.

In real estate rental operations, the company is responding to the polarization trend in the rental housing market. While nationwide rental rates are rising, older properties face higher vacancy risks. Accordingly, the company's sublease business prioritizes equipment investments that enhance convenience and comfort. To provide an environment satisfying both property owners and tenants, it is advancing service enhancement and digitalization to expedite transactions, aiming for long-term revenue stabilization.

Toward realizing a sustainable society, KONOIKE Co. is advancing sustainability management based on SDGs principles. The company has established four pillars: "community development and revitalization," "creating a workplace where people can thrive," "environmentally conscious business operations," and "community contribution." It is building internal systems that simultaneously achieve workforce recruitment and labor efficiency improvements while enhancing profit margins and profitability. Through these comprehensive initiatives, the company aims to become a sustainably growing enterprise with broad social support.