| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3374.26 | 45 |
| Intrinsic value (DCF) | 1154.00 | -50 |
| Graham-Dodd Method | 4009.57 | 72 |
| Graham Formula | 1969.44 | -15 |
Anabuki Kosan Inc. (8928.T) is a diversified real estate company headquartered in Takamatsu, Japan, with a strong presence in custom home contracting, apartment development, and real estate distribution. Founded in 1964, the company has expanded its operations to include hotel and tenant building management, public facility consignment management, and town planning services. Additionally, Anabuki Kosan offers a broad range of ancillary services such as facility management, energy-saving solutions, condominium management, insurance, and senior-related services, positioning itself as a comprehensive real estate solutions provider. Operating in Japan's competitive real estate sector, the company leverages its long-standing reputation and integrated service model to cater to residential, commercial, and public infrastructure needs. With a market capitalization of approximately ¥22.6 billion, Anabuki Kosan plays a significant role in Japan's real estate services industry, combining traditional property development with modern facility management and outsourcing services.
Anabuki Kosan presents a mixed investment profile. On the positive side, the company operates in Japan's stable real estate market, benefiting from diversified revenue streams across property development, management, and ancillary services. Its low beta (0.419) suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the negative operating cash flow (-¥1.14 billion) and high total debt (¥70.9 billion) relative to cash reserves (¥9.56 billion) raise liquidity concerns. The company's net income of ¥4.84 billion and EPS of ¥454.03 indicate profitability, but investors should monitor its ability to improve cash flow generation and manage leverage. The dividend yield, based on a ¥58 per share payout, may attract income-focused investors, but sustainability depends on operational improvements.
Anabuki Kosan competes in Japan's fragmented real estate services sector, where differentiation is key. Its competitive advantage lies in its vertically integrated business model, combining property development, management, and value-added services like energy efficiency and senior care—a unique proposition in the market. The company's long-standing presence (since 1964) provides brand trust and local market expertise, particularly in the Shikoku region. However, its national scale is limited compared to larger Japanese real estate conglomerates. Anabuki Kosan's focus on custom home contracting and apartment development allows for higher-margin projects, but it faces stiff competition from developers with stronger balance sheets and broader geographic reach. The company's diversification into facility management and outsourcing services mitigates cyclical risks in property sales but requires operational efficiency to maintain profitability. Its ability to bundle services (e.g., combining property sales with insurance or travel services) creates cross-selling opportunities, though execution risks remain given the negative operating cash flow. Competitors with greater financial flexibility may outperform in large-scale developments or during market downturns.