Econach Holdings

Basic Information

Stock Code
3521
Industry
Service Industry
Category Detail
Leisure & Recreation Facilities
Prefecture
Tokyo
Establishment Year
December 1926
Listing Year
July 1949
Official Website
http://www.econach.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Softfront, Gokurakuyu Holdings, Banners, iFreak

Overview

Econach Holdings is a holding company in the service industry founded in 1926, focusing on real estate and hot bath businesses to build a stable revenue base rooted in the local community.

Current Situation

Econach Holdings maintains stable performance with consolidated sales of approximately 1.9 billion yen and net profit of about 170 million yen (fiscal year ended March 2018). Its main businesses are concentrated on real estate rental income in Minato-ku, Tokyo, and hot bath facility operations, differentiating it from competitors like Gokurakuyu Holdings. It has completely withdrawn from the textile and cosmetics businesses to focus on core operations. It transitioned to a holding company structure in 2010 to strengthen its management foundation and began hot bath operations in 2015 to diversify its business. The company emphasizes sustainability initiatives and service quality improvements through the introduction of the latest equipment. Moving forward, it aims for medium- to long-term business growth by enhancing real estate asset management alongside expanding hot bath services tailored to local consumer needs. In 2023, it transitioned to the Tokyo Stock Exchange Standard Market and is improving information disclosure for investors.

Trivia

Interesting Facts

  • Founded in 1926, it is a company with a long history.
  • Originally a textile-related company called Japan Lace Co., Ltd.
  • Began hot bath business in 2015 and expanded into new ventures.
  • Multiple local related companies are among its shareholders.
  • Strong investment portfolio in central Tokyo properties.
  • Transitioned to holding company in 2010 and renewed management structure.
  • Has a history of using an aviation electrical equipment company name.
  • Transferred cosmetics business in 2017 and scaled down operations.
  • Maintains small-scale operations with 15 consolidated employees.
  • Achieved transition to Tokyo Stock Exchange Standard Market.

Hidden Connections

  • Deep ties to the local economy through ownership of key properties in Minato-ku, Tokyo.
  • Deploys a niche strategy different from major competitors in the hot bath industry.
  • Historically transitioned from textile business to service industry.
  • Strengthens management guidance for group companies as a parent.
  • Many local related companies as shareholders, contributing to the local economy.
  • Receives recognition from local government for environmentally considerate hot bath facilities.
  • Has a history of business in aviation electrical equipment.
  • Actively responding to Tokyo Stock Exchange Standard Market reorganization.

Future Outlook

Growth Drivers

  • Stable growth in real estate value in central Tokyo
  • Expansion and diversification of hot bath market demand
  • Strengthening of regionally rooted services
  • Promotion of digital transformation
  • Introduction of environmental and energy-saving technologies
  • Increased hot bath usage due to growing health consciousness
  • Service deployment tailored to aging society
  • Further diversification of business portfolio
  • Improved ESG evaluation from investors
  • Building of sustainable management structure

Strategic Goals

  • Achieve 20% increase in real estate revenue
  • Double hot bath business sales and strengthen branding
  • Realize decarbonization management and reduce environmental impact
  • Full promotion of digital technology utilization
  • Continuously maintain customer satisfaction above 90%
  • Strengthen partnerships with local communities
  • Implement measures to improve employee engagement
  • Optimize and enhance holding company functions
  • Diversify and optimize asset management risks
  • Aim to be a top-class company in ESG evaluation

Business Segments

Real Estate Management Services

Overview
Provides management and operation services for rental properties to real estate owners, supporting stable revenue.
Competitiveness
Specialized management know-how for central Tokyo properties
Customers
  • Corporate Tenants
  • Commercial Tenants
  • Investors
  • Local Governments
  • Management Companies
Products
  • Office Leasing Management
  • Commercial Facility Leasing Management
  • Property Maintenance
  • Asset Management Advice

Hot Bath Facility Operation Support

Overview
Leverages know-how from group facility operations to provide support and consulting for hot bath facilities.
Competitiveness
Management guidance experience specialized in hot bath businesses
Customers
  • Hot Bath Operators
  • Relaxation Businesses
  • Local Governments
  • Tourism Operators
Products
  • Operation Consulting
  • Facility Management Support
  • Service Quality Improvement Support

Investment Holding Management

Overview
Oversees group companies and provides management guidance for investment stocks.
Competitiveness
Stable management foundation from long years of holding company operations
Customers
  • Group Companies
  • Investors
  • Financial Institutions
Products
  • Management Guidance
  • Financial Management
  • Stock Management

Competitive Advantage

Strengths

  • Ownership of real estate in central Tokyo
  • Track record in hot bath facility operations
  • Stable rental revenue base
  • Diversified business structure
  • Management control via holding company

Competitive Advantages

  • Real estate assets with geographical advantages
  • Regional specialized hot bath service deployment
  • Ability to meet diverse customer needs
  • Stable revenue through long-term holdings
  • Efficient management guidance system

Threats

  • Risks from real estate market fluctuations
  • Decrease in hot bath usage due to COVID-19, etc.
  • Entry of competitors into hot bath business
  • Cost increases from rising land prices
  • Increased operational burden from stricter regulations

Innovations

2023: Transition to Standard Market

Overview
In conjunction with the Tokyo Stock Exchange market transition, advanced preparation and enhancement of investor information disclosure.
Impact
Improved investor trust and evaluation in the capital market

2022: Hot Bath Facility Equipment Renewal Project

Overview
Implemented energy-saving equipment introduction and facility renovations in existing hot bath facilities to improve service quality.
Impact
Improved facility user satisfaction and reduced operating costs

2021: Real Estate Management System Renewal

Overview
Improved real estate management efficiency and information sharing through the introduction of the latest IT systems.
Impact
Enhanced operational efficiency and response speed

2020: Withdrawal from Cosmetics Business

Overview
Restructured non-core business by transferring the cosmetics division to concentrate management resources.
Impact
Improved revenue structure and stabilized cash flow

Sustainability

  • Active introduction of energy-saving equipment
  • Ongoing regional cleanup activities
  • Enhanced environmental measures in hot bath facilities
  • Promotion of employee health management
  • Advancement of sustainable asset management