Randix <2981>, which provides real estate sales, brokerage, and order housing matching services centered on affluent customers, as well as operates its own portal site "sumuzu", announced its intermediate financial results for the fiscal year ending March 2025 on November 12.

The cumulative revenue for Q2 was 9,490 million yen, an increase of 7.2% compared to the same period last year, and the operating profit was 889 million yen, up 24.3%, exceeding initial financial estimates. The early strengthening of young employees has accelerated, and the inventory turnover is good (previous fiscal year 5.40 months → Q2 cumulative 4.85 months), with the operating profit for the July-September period reaching an all-time high. This period's cumulative operating margin exceeded initial full-year estimates (full-year estimate 8.8% → Q2 cumulative 9.4%), and the progress rate of operating profit relative to the full-year performance estimate also exceeded 50%. The full-year estimates forecast revenue to increase by 17.4% year-on-year to 20,000 million yen, and operating profit to increase by 36.7% to 1,750 million yen. The confirmed inventory is 17,326 million yen (compared to 13,002 million yen at the end of the previous period), and necessary inventory for achieving performance estimates has already been acquired. To achieve 20% annual sales and profit growth, inventory accumulation for the next period is ongoing.

The company operates two main businesses, with the core being single-family housing business that provides a one-stop solution for the process from the procurement to the sale of real estate, brokerage services for real estate transactions, matching services for custom-built homes, and after-sales follow-up after construction. Since 2018, a matching service connecting custom home hopefuls with construction companies has been initiated through the company's site "sumuzu" along with real estate information primarily about residences. The target area includes the affluent Southern area (Setagaya Ward, Meguro Ward, Shibuya Ward, Minato Ward, Shinagawa Ward, Ota Ward), where the percentage of average annual income exceeding 10 million yen is high, and about 30% of contracts are obtained through referrals and repeat customers, stockpiling data related to the high hurdles of wealthy customer needs. As of the end of Q2 for the fiscal year ending March 2025, the company holds data on 42,947 affluent customers, with the contract ratio driven by "referrals/repeat business" + "the company’s services" constituting about 40% of the total. Additionally, based on the customer data acquired from the single-family housing business, the company is also expanding its direct income property business tailored for individuals that conducts self-developed sales of single-income properties (residences) ranging from 500 million to 1 billion yen, constituting about 20% to 30% of the revenue composition.

Since the company is engaged in real estate sales, brokerage, and custom home matching mainly targeting affluent customers, there are no direct competitors among listed companies. The accumulation of transactions with affluent customers since its founding has resulted in many referrals and repeats, transforming what is generally a flow-type real estate business into a stock-type model by leveraging the characteristics of affluent customers, maintaining the company's competitive advantage. Moreover, the series of residence properties for investment real estate have all been completed and sold upon release, achieving high-profit levels. Furthermore, since its establishment, leveraging real know-how in residential construction for custom-built homes, the company provides fully optimized advice on selecting construction companies for each customer, resulting in high customer satisfaction through unique construction company matching. Additionally, utilizing AR technology, the company conducts AR sales before the completion stage of single-family homes. By visualizing the completion images of the exterior and interior and providing AR expressions at a level comparable to actual products regarding visual imagery after completion, this leads to customer reassurance and expedites purchase decision-making, with actual evidence of sales being completed even before the homes are finished.

For mid-to-long-term growth targets, the company aims for a revenue growth CAGR of 20% and an operating margin of 10% by the fiscal year ending March 2028, aspiring to be the top player in the affluent real estate market in the Tokyo area. It seems to be planning to perform M&A emphasizing synergies with existing businesses and promoting DX in its own services and operation. To achieve this, the ongoing fiscal year, 2025, will focus on recovering profitability through the enhancement of human capital and solidly establishing a re-growth foundation. As a new initiative, the company has also started a third place business targeting affluent customers (a new form combining leisure and investment), where customers can utilize their properties or rent out their vacation homes (sharing) when not personally using them for profitability. The company designs and sells unique new types of vacation properties that combine both self-use and long term rentals in good locations visible from mountains, rivers, lakes, and seas within three hours' drive from the city center (Yamanashi, Shizuoka, Kanagawa, Chiba, Gunma). The first project of this third place business, constructed by the company itself, is expected to be completed and generate revenue by the fiscal year ending March 2026. In the real estate sector, addressing common needs of affluent customers comprehensively, new services are being developed for existing customers acquired through the single-family residential business. With "affluence" and "QOL improvement" as keywords, the company will gradually expand its operational area while gaining familiarity with the Southern area, establishing a construction subsidiary to directly reflect its architectural design capabilities in property development, thus broadening its business scope.

Additionally, regarding shareholder returns, there is a policy to continuously increase dividends in the long term regardless of fluctuations in profits, and there is also a disclosure of plans to continue shareholder benefits as a measure to enhance shareholder returns. Currently, the dividend yield is 3.25%.