Soken Ace

Basic Information

Stock Code
1757
Industry
Construction
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
February 1965
Listing Year
November 1997
Official Website
https://chusho-hd.co.jp/
TSE Information
TSE Information
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Overview

Soken Ace is a holding company founded in 1965 with its headquarters in Tokyo. It specializes in custom home construction and residential renovations as its main businesses and holds a stable position in the construction industry.

Current Situation

Soken Ace recorded consolidated sales of approximately ¥2.8 billion and net assets of approximately ¥700 million for the fiscal year ended March 2022, with its head office in Shinjuku-ku, Tokyo. Through its group subsidiary Takaei Build, it excels in custom home orders, construction, and sales of residential equipment, maintaining a stable customer base. In the past, it attempted an artificial island development project overseas but withdrew, and now focuses on domestic operations. After reorganizing subsidiaries and changing its trade name, it adopted its current name in 2023 to improve management efficiency. Despite its small scale, it has a well-established management system and has strengthened governance as a company with a board of auditors. In the market, it is positioned as a low-priced stock, maintaining solid management as a small to medium-sized construction firm. From the 2020s onward, it aims to expand business leveraging the growth in the home renovation market, while concentrating resources by streamlining consolidated subsidiaries. Moving forward, as a holding company for small construction businesses, it will pursue a strategy to enhance the group's overall management capabilities.

Trivia

Interesting Facts

  • Independently spun off from the core of the former Takasugi Group.
  • Once promoted an artificial island construction plan in Sochi, Russia.
  • Stock price history includes a surge from ¥19 to ¥501.
  • Changed trade name to current 'Soken Ace' in 2023 and relocated head office.
  • Built an efficient group management system with lean staffing.
  • Consolidated residential reform business into main subsidiary.
  • Handles sales of V BLOCK series solar power equipment.
  • Track record of successful fundraising through stock acquisition rights.
  • Unusual history of quickly liquidating an animal-related subsidiary.
  • Head office located on the 37th floor of Shinjuku Center Building in Shinjuku-ku, Tokyo.

Hidden Connections

  • Inherited business foundation from deep ties with the former Takasugi Group.
  • Attempted overseas expansion through investment forums in Russia.
  • Entered solar power market through collaboration with technical partners.
  • Capital relationships with competitors in construction industry have fluctuated intermittently.
  • Attracted attention in stock market as a low-priced stock at times.
  • Once explored diversification into non-residential equipment and animal-related businesses.
  • Subsidiary Takaei Build has consolidated operations through integration of multiple companies.
  • Featured fundraising with Hong Kong-based investment funds using stock acquisition rights.

Future Outlook

Growth Drivers

  • Increasing demand for residential reforms
  • Rising needs for energy-saving homes
  • Promotion of solar power equipment adoption
  • Growing real estate investment in central Tokyo
  • Management efficiency improvements via holding company structure
  • Strengthened business base through subsidiary integration
  • High-performance home planning compliant with stricter environmental regulations
  • Improved customer services through digitalization
  • Locally focused sales strategy
  • Expansion of national housing policy support

Strategic Goals

  • Achieve sales of over ¥5 billion
  • Expand residential reform market share via subsidiaries
  • 70% or higher eco-friendly rate for residential equipment
  • 20% improvement in construction efficiency through digital technology
  • Establish sustainable home development model
  • Enhance market presence in Tokyo
  • 100% compliance with new home energy-saving standards
  • Further diversification of investment business
  • Revenue stabilization through group collaboration
  • Promote diversity and better work environment for employees

Business Segments

Residential Construction and Architecture

Overview
Business undertaking custom home construction and reform works for customers.
Competitiveness
Achieves high customer satisfaction through meticulous response and planning/design capabilities.
Customers
  • Individual Customers
  • Real Estate Developers
  • Architectural Design Firms
  • Housing Exhibition Operators
Products
  • Wooden Custom Homes
  • Residential Reforms
  • Earthquake Reinforcement Works
  • Solar Power Equipment Installation

Residential Equipment Sales and Installation

Overview
Provides sales and installation works for residential equipment.
Competitiveness
Strength in solar-related product lineup and installation capabilities.
Customers
  • Construction Companies
  • Reform Contractors
  • Home Manufacturers
  • Design Firms
Products
  • Solar Power Systems
  • Water Supply/Drainage Equipment
  • Air Conditioning Equipment
  • Storage Battery Systems

Investment and Asset Management

Overview
Engages in real estate investment and group asset management.
Competitiveness
Optimization of group assets and creation of investment opportunities.
Customers
  • Investment Funds
  • Real Estate Owners
  • Individual Investors
Products
  • Investment Business
  • Real Estate Management Services

Competitive Advantage

Strengths

  • Construction technology specialized in custom homes
  • Extensive track record in residential reforms
  • Sales and installation capabilities for solar power equipment
  • Sales network centered in the Tokyo metropolitan area
  • Solid governance with board of auditors
  • Business diversification through multiple subsidiaries
  • Efficient management with lean organization
  • Meticulous customer service with local focus
  • Established residential equipment sales network
  • Track record in asset management and investment
  • Value as a low-priced stock
  • Diverse sales channel deployment
  • Strong collaboration among employees
  • Proposal capabilities for eco-friendly homes
  • Long-term commitment to stable management

Competitive Advantages

  • Differentiation through free design in custom homes
  • Strength of integrated production system via Takaei Build
  • Secured in-house sales channels for solar power systems
  • Prompt reform response and after-sales service
  • Multi-faceted management through group company collaboration
  • High convenience with head office in central Tokyo
  • Centralized management of resources as a holding company
  • Cost reduction through lean operations
  • Flexibility to meet diverse housing needs
  • Strengthened internal controls via board of auditors
  • Know-how gained from past overseas ventures
  • Fundraising capability through stock acquisition rights
  • Multi-brand deployment of residential equipment
  • Strong relationships with local communities
  • Adaptability to housing-related regulations

Threats

  • Growth slowdown due to maturity of domestic housing market
  • Risks from fluctuations in raw material prices and procurement
  • Constraints at construction sites due to labor shortages
  • Increase in low-price competitors
  • Instability in construction demand from natural disasters
  • Cost increases from stricter regulations
  • Pressure on business base from rising land prices
  • Decline in housing investment during economic downturns
  • Changes in construction specs due to enhanced environmental regulations
  • Reduced purchase intent from rising housing loan rates
  • Decline in competitiveness from delays in adopting new technologies
  • Collaboration issues among group subsidiaries

Innovations

2022: Business Reorganization through Subsidiary Integration

Overview
Integrated Crea Home, Crea Style, and Crea Construction into Takaei Build to improve management efficiency.
Impact
Succeeded in reducing operating costs and unifying customer services.

2020: Enhancement of Residential Solar Power Systems

Overview
Expanded VBLOCK series to strengthen proposals for energy-saving homes.
Impact
Contributed to increased sales of eco-friendly homes.

2023: Promotion of Digitalization in Residential Reform Services

Overview
Established online consultation portal for customers to improve convenience.
Impact
Contributed to improved customer satisfaction and order rates.

2021: Expansion of Energy-Saving Building Materials Adoption

Overview
Increased use of superior insulation materials to enhance home quality.
Impact
Improved customer trust and environmental compliance ratings.

2023: Introduction of Safe Construction Management System

Overview
Digitalized on-site safety management to reduce industrial accident risks.
Impact
Improved employee safety and succeeded in preventing accidents.

Sustainability

  • Promotion of design and construction for energy-saving homes
  • Active introduction of solar power equipment
  • Promotion of construction waste recycling
  • Planning and proposals for reduced environmental impact
  • Cooperation in environmental education for local communities
  • Enhanced safety measures in work environment
  • Environmental management of supply chain