| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2883.25 | 75 |
| Intrinsic value (DCF) | 23726.52 | 1341 |
| Graham-Dodd Method | 2040.65 | 24 |
| Graham Formula | 8759.26 | 432 |
Arr Planner Co., Ltd. (2983.T) is a Japanese real estate development company specializing in custom-built housing, condominiums, renovation services, and real estate brokerage. Headquartered in Nagoya, the company operates across multiple segments of Japan's residential real estate market, including new construction, used home distribution, and property transactions. Founded in 2003, Arr Planner has established itself as a regional player with a focus on personalized housing solutions. The company's integrated business model—spanning development, sales, and renovation—positions it to capture demand in Japan's evolving real estate landscape, where aging housing stock and urban redevelopment present growth opportunities. With a market capitalization of approximately ¥7.7 billion, Arr Planner serves both individual homeowners and investors, leveraging local market expertise in Aichi Prefecture and surrounding regions. The company's financial stability and niche focus on mid-range housing differentiate it from large-scale national developers.
Arr Planner offers a conservative investment profile with low beta (0.264), reflecting relative insulation from broad market volatility. The company generated ¥40.2 billion in revenue and ¥1.44 billion net income in its latest fiscal year, with healthy operating cash flow of ¥1.95 billion. A dividend yield of ~1.7% (¥45/share) provides income appeal. However, risks include high leverage (¥16.6 billion debt vs. ¥5.4 billion cash) and exposure to Japan's declining population trends. The stock may appeal to investors seeking regional real estate exposure with moderate growth potential, particularly in renovation and used housing—segments benefiting from Japan's aging property market. Valuation metrics should be compared against peers given the company's small-cap status.
Arr Planner competes in Japan's fragmented real estate development sector, where regional expertise and vertical integration are key advantages. Unlike national giants like Daiwa House, Arr Planner's strength lies in localized customer relationships and agility in mid-market housing projects. Its renovation/exterior business benefits from Japan's growing reform market (estimated at ¥3 trillion annually), where smaller firms often outperform larger competitors in customization. However, the company lacks the scale advantages of diversified conglomerates in land acquisition and financing. Competitive positioning is further challenged by Japan's shrinking rural population, forcing reliance on urban Aichi Prefecture demand. Arr Planner's debt-to-equity ratio of ~2.1x exceeds industry averages, limiting expansion capacity versus cash-rich peers. The used housing distribution segment faces intense competition from online platforms like Lifull and GA Technologies. Differentiation through design-focused custom builds and one-stop renovation services provides some insulation, but margin pressures persist in brokerage activities where commission rates are declining industry-wide.