Please tell us about Meiho Enterprise ’s business.

We are a corporate group centered on real estate development. The five group companies are engaged in real estate development, construction contracting, and rental management, and this fiscal year marks our 57th fiscal year.
Our real estate development and construction contracting business is centered in the Jonan and Josai areas of Tokyo's 23 wards. We handle rental property management in the greater Tokyo area and the Kyoto and Shiga areas. Our real estate is rental apartment buildings, and our specialty is being involved in the housing industry from upstream to downstream in one stop.

Locally, we analyze the demand for rental housing and the requests of residents in the Tokyo metropolitan area and the Kyoto-Shiga region, and sell apartment complexes that are currently being rented to investors. In this way, we respond to real estate investment needs and contribute to society by supplying housing.

The market size for rental housing is expected to be 340,000 units (based on construction starts) in fiscal 2023, of which our company will supply approximately 370 units. Even in an environment of declining birthrates, the rental housing market in the Tokyo metropolitan area continues to grow, and our group intends to benefit from this growth.

Looking back at the fiscal year ending July 2024, how do you evaluate it?

In the fiscal year ending July 2024, we were able to secure higher profit margins and profit amounts than initially expected due to strong market demand, and in June we revised our earnings forecast upward, with sales increasing by approximately 35%, ordinary profit increasing by approximately 96%, and net profit increasing by approximately 115%, all significantly exceeding the results of the previous fiscal year. Our company has been focusing on employee training, especially for young employees, and this is a major factor in our success in expanding purchasing and sales for young sales staff, thereby strengthening our sales capabilities.

Another major factor was that sales activities were not limited to Japan, but sales routes were expanded to overseas investors, primarily in Asia. We have been proactively strengthening our sales activities, primarily in Asia, by holding seminars in Taiwan and holding our first individual business meetings in Singapore and Hong Kong.

In terms of funding, we will actively seek new financing, including new borrowings, and lay the foundation for business expansion. In addition, the group has over 150 employees in total, and we are focusing on creating an environment where employees can work comfortably, as well as enhancing educational plans such as specialized training and management skills training, and we plan to further increase the number of employees in order to expand our business. Increasing the number of employees is an important factor supporting further development in the future as part of our growth strategy.

What are your prospects for the current fiscal year (ending July 2025) and your future strategies?

Product Strategy

In this fiscal year, we will continue to strengthen the supply of RC housing centered on the EL FARO (EL FARO) series, focusing on areas with excellent living environments in Tokyo's 23 wards. In particular, we will further accelerate the pace of supply in the Jonan and Josai areas, aiming to supply around 33 buildings per year. We will build a stable earnings base based on the strengths of the EL FARO (EL FARO) series, which are high capital turnover and business completion in a short period of time.

Overseas sales strategy

We plan to establish a local subsidiary in Taiwan in November 2024 and begin full-scale sales there from 2025. Through this base, we aim to expand our services to investors in Asia, including Taiwan, and further strengthen our sales routes. We will also actively promote sales activities with a view to joint development projects in Japan with local developers and the recruitment of local global talent in Taiwan.

Human Resources Strategy

In terms of recruitment, we hired 47 new employees in the fiscal year ending July 2024 (37 mid-career hires and 10 new graduates). As with last year, we will continue to actively recruit new graduates and mid-career employees to further grow our organization. We will further enhance training programs and practical education for young employees, who are a major driving force behind our company's growth, and strengthen our system to accelerate the speed of growth in the field. We will also focus on training and specialized training for existing employees, creating an environment that supports skill improvement and career growth.

Vertical Integration Strategy

In the construction of our main products, the "EL EL FARO" and "MIJAS" series, we will further strengthen our collaboration with Meiho Engineering and Kyoei Kyoeigumi. In addition, in the post-sales property management, we plan to continue contributing to the profit expansion of the entire group together with Meiho Properties this fiscal year.

What is your vision for the future?

The title of this online shareholder newsletter, "M's connection," is
Please tell us your thoughts, President

This not only signifies our connection with shareholders who sympathize with Meiho Enterprise 's vision and mission and share it with individual investors and shareholders, but also our connection with groups that do not share the Meiho name.