| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2762.43 | -12 |
| Intrinsic value (DCF) | 1113.74 | -64 |
| Graham-Dodd Method | 4912.99 | 57 |
| Graham Formula | 5200.09 | 66 |
Hakuyosha Company, Ltd. (9731.T) is a leading Japanese provider of cleaning, rental, and facility management services, headquartered in Tokyo. Founded in 1897, the company operates in the consumer cyclical sector, specializing in a wide range of cleaning services, including garment cleaning, pick-up and delivery, house cleaning, and office/shop interior maintenance. Hakuyosha also offers uniform and linen supply services, dust-free clothing solutions, and comprehensive building management. With a strong presence in Japan, the company serves diverse industries, from hospitality to corporate offices, leveraging its long-standing expertise in hygiene and maintenance. Hakuyosha’s integrated service model and commitment to quality make it a trusted name in Japan’s personal products and services industry. The company’s revenue of ¥43.58 billion (FY 2024) reflects its stable market position in a competitive sector.
Hakuyosha presents a stable investment opportunity with moderate growth potential in Japan’s cleaning and facility management sector. The company’s diversified service portfolio and established brand provide resilience against economic fluctuations, as evidenced by its steady revenue and net income of ¥2.22 billion (FY 2024). However, its high total debt (¥11.65 billion) relative to cash reserves (¥1.32 billion) raises liquidity concerns. The low beta (0.442) suggests lower volatility compared to the broader market, appealing to risk-averse investors. Dividend investors may find the ¥50 per share payout modest but sustainable. Long-term growth depends on Hakuyosha’s ability to expand service offerings and efficiency in a labor-intensive industry.
Hakuyosha competes in Japan’s fragmented cleaning and facility management industry, where differentiation is driven by service quality, reliability, and customer trust. The company’s competitive advantage lies in its century-old brand reputation, diversified service portfolio (from garment cleaning to building management), and integrated logistics (pick-up/delivery). However, it faces pricing pressure from smaller regional players and labor cost inflation, which could squeeze margins. Unlike global competitors, Hakuyosha’s focus on Japan limits geographic diversification but strengthens local market penetration. Its B2B uniform/linen rental segment provides recurring revenue, offsetting cyclicality in discretionary cleaning services. The lack of significant technological adoption (e.g., automation) compared to newer entrants may hinder efficiency gains. Capital expenditures (-¥760 million in FY 2024) suggest restrained investment in innovation, potentially ceding ground to tech-driven rivals.