Choei

Basic Information

Stock Code
2993
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Kyoto Prefecture
Establishment Year
April 1988
Listing Year
December 2021
Official Website
https://www.kk-choei.co.jp
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
East Japan Land, Daito Kentaku, Shinden Hai, JPMC, Ambition DX Holdings, ZOA, J.S.B., Marion, Sere Corporation, AIG, Leopalace21, Mainichi Comnet

Overview

Choei is a Kansai-based property management company founded in 1988, a leading industry player with strengths in comprehensive apartment management and planning and operation of rental housing.

Current Situation

Choei primarily operates rental apartment planning and management as well as comprehensive apartment management services centered in the Kansai region, forming a stable revenue base through its rental housing management business. Listed on the Tokyo Stock Exchange in 2021, it differentiates itself amid intensifying competition in the property management industry through localized services and meticulous quality control. It focuses on enhancing customer satisfaction in cleaning and maintenance operations and is advancing business efficiency via IT adoption. Collaborating with related companies, it is expanding real estate brokerage and property planning businesses to build diversified revenue pillars. It promotes sustainable apartment management, including environmentally considerate methods and energy-saving measures, thereby establishing trust within the local community. Moving forward, it aims to expand regionally and increase the number of managed units, centering its strategy on DX initiatives to improve operational efficiency and customer convenience. While differentiating from competitors, it is proactively strengthening its stable business foundation and developing new ventures. Long-term, it envisions new service creation through the integration of property management and IT.

Trivia

Interesting Facts

  • Steadily growing through Kansai-focused strategy
  • Diversified from rental housing management to hotel operations
  • Promoting apartment management efficiency with IT
  • TSE listing in 2021, relatively recent
  • Actively pursuing sustainable housing management
  • Maintaining high customer satisfaction in cleaning services
  • Focusing on development of senior rental properties
  • Expanding management scope through affiliate collaborations
  • Offering Kyoto machiya rental brand
  • Pioneer in environmentally friendly housing management
  • Supporting most rental management tasks with IT
  • Strong ties with local communities
  • 24-hour emergency response system
  • High brand recognition in Kansai rental management
  • Properties reviving traditional Kyoto machiya in modern style

Hidden Connections

  • Stabilizing property supply through strong local landowner network
  • Joint development of management apps with IT service companies
  • Co-developing housing brands reflecting Kyoto's traditional culture with other firms
  • Collaborating with local governments on eco-friendly apartment management tech
  • Contributing to regional revitalization through hotel ops tied to local tourism promotion
  • Exclusive contracts with eco-material manufacturers for cleaning supplies
  • Differentiation by integrating management and planning unlike other industry peers
  • Local university collaboration on senior housing R&D projects

Future Outlook

Growth Drivers

  • Stable increase in Kansai rental housing demand
  • Expanding needs for senior housing due to aging population
  • Management efficiency and customer convenience via IT
  • Growing societal demand for eco-friendly housing management
  • Strengthened revenue base through diversified businesses
  • Business transformation and cost reduction via DX
  • Brand strengthening of localized services
  • Enhanced provision of stable revenue properties to investors
  • Recovery and diversification of hotel operations
  • Service value enhancement leveraging regulatory changes
  • Expanding smart home demand
  • Market growth in sustainable housing management

Strategic Goals

  • Expand rental managed units to 1.5 times current levels
  • Achieve 30% operational efficiency improvement via IT systems
  • Increase managed properties with over 80% eco-compliance rate
  • Enrich lineup of barrier-free senior properties
  • Expand community contributions through stronger local ties
  • Raise new business sales to over 20% of total
  • Expand business to neighboring regions centered on Tokai and Kansai
  • Achieve 100% paperless contract rate
  • Complete employee digital skills enhancement programs
  • Strengthen stable dividend policy and shareholder returns

Business Segments

Rental Housing Planning and Management

Overview
Provides one-stop planning, management, and operations for rental housing targeted at landowners and investors.
Competitiveness
Meticulous customer service and comprehensive management rooted in the Kansai region
Customers
  • Landowners
  • Real estate investors
  • Management companies
  • Construction companies
  • Rental operators
  • Corporate rental demand
  • Tenant agencies
Products
  • Rental apartment planning and development
  • Housing management services
  • Tenant recruitment and screening
  • Rent management and collection agency
  • Rental property maintenance
  • Equipment maintenance
  • Contract management services

Comprehensive Apartment Management Services

Overview
Undertakes common area cleaning, maintenance, and repairs for apartments.
Competitiveness
High-quality cleaning techniques and prompt maintenance response
Customers
  • Apartment owners' associations
  • Management consignment companies
  • Real estate management companies
  • Repair contractors
Products
  • Cleaning operations
  • Equipment maintenance inspections
  • Repair proposals and execution
  • Resident support services
  • Owners' association support

Real Estate Brokerage Services

Overview
Provides rental and sales brokerage along with real estate utilization consulting.
Competitiveness
Trust and rapid response unique to regional businesses
Customers
  • Individual customers
  • Corporate customers
  • Developers
  • Investors
Products
  • Rental brokerage
  • Sales brokerage
  • Land utilization advice
  • Real estate consulting

Hotel Operations Management

Overview
Deploys operations and facility management services for small to medium-sized hotels in the Kansai area.
Competitiveness
Flexible operations tailored to regional needs
Customers
  • Hotel owners
  • Travel agencies
  • Business customers
Products
  • Accommodation operations
  • Facility management
  • Customer service

Cleaning Supplies Sales

Overview
Sells environmentally friendly cleaning supplies for apartment cleaning.
Competitiveness
Superior lineup of safe and functional products
Customers
  • Apartment management companies
  • Cleaning companies
  • Corporate facility managers
Products
  • Detergents
  • Cleaning tools
  • Eco-friendly materials

Competitive Advantage

Strengths

  • Strong customer base rooted in the Kansai area
  • Comprehensive rental housing management capabilities
  • High-quality apartment management services
  • Flexible response through regional proximity
  • Operational efficiency via IT adoption
  • Diversified revenue structure
  • Enhanced credibility from recent TSE listing
  • Abundant managed units and track record
  • Initiatives for sustainable housing management
  • High staff expertise
  • Strengthened collaboration with related companies
  • Ongoing focus on customer satisfaction improvement
  • Promotion of barrier-free and eco-friendly properties
  • Robust emergency response services
  • Strong community relations

Competitive Advantages

  • Solid market position in Kansai for customer retention
  • End-to-end capabilities from planning to management
  • High-quality cleaning and maintenance for apartments
  • Efficient operations via IT-based management systems
  • Flexible customer service with on-site emphasis
  • Revenue risk diversification through multifaceted businesses
  • Strengthened fundraising as a trusted listed company
  • Proactive investment in sustainable housing management
  • Response to diverse needs like senior and smart homes
  • Service lineup leveraging synergies with affiliates
  • 24-hour emergency response system
  • Rapid response and trust-building through local focus
  • Customer retention via rigorous quality control
  • Focus on enhancing brand power in the industry
  • Strategies tailored to Kansai market characteristics

Threats

  • Intensifying market competition in real estate
  • Rising vacancy risks in rental housing
  • Labor shortages due to declining workforce
  • Cost pressures from rising construction material prices
  • Regional biases and fluctuations in rental demand
  • Property damage from disasters
  • Increased compliance burdens from stricter regulations
  • Growing IT security risks
  • Fluctuations in lodging demand due to pandemic effects
  • Asset value declines from market price swings
  • Rising costs for environmental regulation compliance
  • Competitors' large-scale investments and differentiation strategies

Innovations

2022: Strengthening Introduction of Smart Home-Compatible Properties

Overview
Aggressively rolling out rental housing with smart home features using IoT.
Impact
Improved management efficiency and tenant satisfaction

2023: Management Efficiency via IT System Renewal

Overview
Renewed to cloud-based management system to promote digitalization of operations.
Impact
30% operational efficiency improvement, faster customer response

2024: Launch of Environmentally Friendly Apartment Management Program

Overview
Realizing reduced environmental impact through energy-saving equipment and eco-cleaning.
Impact
15% annual reduction in CO2 emissions

2021: Introduction of Community Watch Service

Overview
Introduced monitoring systems for tenants to enhance safety and security.
Impact
Improved satisfaction among senior tenants

2020: Introduction of Online Contract System

Overview
Built digital services enabling fully non-face-to-face contract completion.
Impact
Shortened contract times and improved customer convenience

Sustainability

  • Promotion of energy-saving equipment adoption
  • Advancement of renewable energy utilization
  • Selection and use of eco-friendly cleaning materials
  • Regional cleanup activities, tree planting, and environmental conservation
  • Promotion of barrier-free properties for seniors
  • Advancement of paperless contract systems
  • Setting of CO2 emission reduction targets
  • Active adoption of eco-repair materials
  • Employee environmental awareness programs
  • Strengthened collaboration with local communities
  • Introduction of water usage reduction programs
  • Waste recycling rate improvement activities