JALCO Holdings

Basic Information

Stock Code
6625
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
October 2011
Listing Year
October 2011
Official Website
https://www.jalco-hd.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hulic, TKP, Clip, Real Gate, Heiwa Real Estate, Keihanshin Building, Taihei, Tosei, Airport Facility, Aeon Mall, Idom MC, Kin'ei, Kabukiza

Overview

JALCO Holdings is a diversified company headquartered in Chuo-ku, Tokyo, established in 2011, with real estate and money lending as its main pillars, and has recovered its performance primarily through the rental business of used pachinko machines.

Current Situation

JALCO Holdings recorded net sales of approximately 2.7 billion yen and net profit of approximately 1 billion yen for the fiscal year ended March 2021, securing stable earnings. Its main business, the rental of used pachinko machines, maintains a competitive advantage and is progressing steadily. The company is advancing diversification through real estate leasing and money lending operations, and has been engaged in social lending business since 2015. Compared to competitors in the industry, it has secured specific niche markets, and despite being medium-sized in terms of assets and employees, it aims for efficient management. To achieve sustainable growth, it is focusing on expanding real estate rental properties and strengthening financial services, while also promoting regionally rooted operations. In the future, it plans to undertake digital transformation and develop new financial products to diversify its revenue base. Although affected by the COVID-19 pandemic, it is gradually on a recovery trajectory and maintains a prudent management stance.

Trivia

Interesting Facts

  • Successful business turnaround example from a former electronics manufacturer.
  • Specialized in used pachinko machine rentals for reconstruction.
  • Headquartered in Nihonbashi, Chuo-ku, Tokyo.
  • Early adopter of social lending business.
  • Established holding company in 2011 for business diversification.
  • Registered money lending company providing financial services.
  • Achieved profitability through business transformation.
  • Also operates regionally rooted real estate management.
  • Leads used gaming machine market with proprietary brands.
  • Streamlined workforce through business reorganization.

Hidden Connections

  • Close relationships with industry leaders through real estate management for pachinko halls.
  • Strong ties with multiple investor communities through social lending business.
  • Dramatically shifted business from electronics parts sales to finance and real estate in early days.
  • Major shareholder Catalyst Co., Ltd. deeply involved in management.
  • Specialized in liquidity support for SMEs due to money lending registration.
  • Partnerships with historic buildings in Nihonbashi area.
  • Owned real estate mainly focused on commercial facilities and warehouses.
  • Established governance system as a company with board of auditors.

Future Outlook

Growth Drivers

  • Maintaining and expanding niche demand in used pachinko market.
  • High leasing demand for central Tokyo real estate.
  • Improved revenue stability through diversification.
  • Growth in social lending market.
  • Business efficiency improvements via IT and digitalization.
  • Expansion of money lending services for SMEs.
  • Strengthening initiatives in environmentally considerate investments.
  • Building trust through collaboration with local communities.
  • Expanding reach to new customer segments.
  • Flexible response to market regulatory changes.
  • Efficient utilization and optimization of existing assets.
  • Increasing interest from global investors.

Strategic Goals

  • Expand market share in used gaming machine rental business.
  • Strengthen real estate portfolio in Tokyo.
  • Double revenue from money lending and financial services.
  • Create new businesses leveraging digital technology.
  • Establish sustainable management based on ESG investment standards.
  • Nationwide expansion of social lending business.
  • Enhance regionally rooted CSR activities.
  • Employee skill development and work-life balance improvement.
  • Strengthen risk management for external environmental changes.
  • Advance transparency and governance systems.

Business Segments

Used Machine Rental Business

Overview
Operating rental and sales business for used pachinko and slot machines.
Competitiveness
High industry recognition due to specialization
Customers
  • Pachinko hall operators
  • Amusement machine distributors
  • Entertainment equipment operators
  • Pachinko machine manufacturers
  • Used machine market players
Products
  • Used pachinko machine rental service
  • Maintenance service
  • Machine sales and buyback service

Real Estate Leasing Operations

Overview
Operating real estate leasing for offices, commercial facilities, warehouses, etc.
Competitiveness
Excellent location in central Tokyo
Customers
  • Commercial facility operators
  • Logistics companies
  • Corporate office tenants
  • Retailers
  • Pachinko hall operators
Products
  • Office building leasing
  • Logistics warehouse leasing
  • Commercial facility tenant leasing

Business Finance Services

Overview
Providing funding procurement and financial services to small and medium-sized enterprises.
Competitiveness
Rapid review and flexible financing
Customers
  • Small and medium-sized enterprises
  • Sole proprietors
  • Startups
  • Real estate companies
  • Retailers
Products
  • Business funding loans
  • Factoring service
  • Lease financing

Social Lending Business

Overview
Cloud-based investment service intermediating funds from individuals to businesses.
Competitiveness
Proprietary review standards and early sell-out track record
Customers
  • Individual investors
  • Small and medium-sized enterprises
  • Agricultural corporations
  • Renewable energy projects
  • Real estate developers
Products
  • Crowdfunding platform
  • Short- and long-term investment projects
  • Social and environmental contribution funds

Real Estate Management Services

Overview
Providing efficient operation and maintenance services for real estate assets.
Competitiveness
Experience and know-how in operating diverse industries
Customers
  • Real estate owners
  • Commercial facility operators
  • Office building owners
  • Warehouse owners
  • Pachinko hall owners
Products
  • Facility management
  • Maintenance
  • Tenant management support

Warehouse and Logistics Business

Overview
Operating warehouse leasing and logistics support services.
Competitiveness
Strengthening logistics bases in urban areas
Customers
  • Distributors
  • Manufacturers
  • Retail companies
  • E-commerce businesses
  • Food industry
Products
  • Warehouse space leasing
  • Logistics management service
  • Storage and shipping agency

Industrial Machinery Leasing Service

Overview
Providing long- and short-term leasing for industrial machinery.
Competitiveness
Equipment lineup adaptable to multiple industries
Customers
  • Manufacturing industry
  • Factory operators
  • Equipment introduction support companies
  • Construction companies
  • Industrial maintenance companies
Products
  • Industrial machinery leasing
  • Equipment rental
  • Maintenance service

Real Estate Development Support

Overview
Providing planning support for real estate development projects.
Competitiveness
Planning capabilities based on market research
Customers
  • Real estate developers
  • Design offices
  • Construction companies
  • Investment funds
  • Local governments
Products
  • Planning and design support
  • Asset valuation
  • Project management

Leasing and Rental Business

Overview
Offering diverse leasing and rental services.
Competitiveness
Flexible contract terms and abundant equipment
Customers
  • Small and medium-sized enterprises
  • Government agencies
  • Event operators
  • Construction companies
  • Manufacturing industry
Products
  • Industrial machinery rental
  • Office equipment leasing
  • Event equipment rental

Financial Consulting

Overview
Providing consulting on fund management and investments.
Competitiveness
Analytical capabilities based on diverse financial experience
Customers
  • Small and medium-sized enterprise owners
  • Individual investors
  • Asset management companies
  • Real estate investors
  • Entrepreneurs
Products
  • Funding consultation
  • Investment strategy proposals
  • Risk management

Digital Solutions Business

Overview
Providing IT solutions for real estate and finance industries.
Competitiveness
Industry-specific system development know-how
Customers
  • Real estate companies
  • Financial companies
  • Small and medium-sized enterprises
  • Startups
  • E-commerce businesses
Products
  • Cloud management system
  • Customer management tools
  • Asset management platform

Competitive Advantage

Strengths

  • Market specialization in used pachinko machine rentals
  • Revenue stability through diversification
  • Ownership of real estate in central Tokyo
  • Rapid funding procurement capability
  • Abundant industry know-how
  • Regionally rooted management style
  • Multiple revenue sources
  • Flexibility of holding company structure
  • Success in social lending business
  • Quick response to customer needs
  • Strong management foundation
  • Development of diverse customer base
  • Solid financial position
  • Stable cash flow
  • Recognition in the pachinko market

Competitive Advantages

  • High industry recognition in used pachinko machine rentals
  • Enhanced real estate value due to prime location in Chuo-ku, Tokyo
  • Early sell-out track record in social lending business
  • Risk diversification through multi-industry operations
  • Ability to develop proprietary financial service products
  • Differentiation from competitors in SME financing
  • Strength in asset operation efficiency
  • Service provision responsive to regional needs
  • Relationship building with diverse industry customers
  • Deployment of industry-specific IT solutions
  • Accumulation and utilization of real estate management know-how
  • Creditworthiness from sound financial position
  • Formulation of sustainable growth strategies
  • High responsiveness in sales
  • Good relationships with local communities

Threats

  • Shrinking pachinko market trend
  • Real estate market fluctuation risks
  • Constraints from strengthened money lending regulations
  • Intensified competition from new entrants
  • Impact of interest rate fluctuations in financial markets
  • Potential revenue deterioration due to economic downturn
  • External environmental risks such as COVID-19
  • Long-term risk of asset value decline
  • Competitive decline due to lag in technological innovation
  • Increasing customer credit risk
  • Stricter legal regulations
  • Risk of loss of social credit

Innovations

2021: Launch of Social Lending Business

Overview
Launched cloud-based investment business for individual investors, acquiring new customer segments.
Impact
Investment projects sold out quickly, succeeding in diversifying funding sources

2020: Expansion of Used Pachinko Machine Rental Services

Overview
Introduced new models and diversified service plans to improve customer satisfaction.
Impact
Increased rental customers, contributing to stable revenue

2022: Introduction of Real Estate Management IT System

Overview
Developed and implemented proprietary system to streamline real estate leasing management.
Impact
Reduced management workload by 30%, achieving cost reduction

2023: Establishment of Environmentally Considerate Funds

Overview
Organized green funds in response to rising environmental investment awareness and offered to investors.
Impact
Promoted expansion of investor base and inflow of new funds

Sustainability

  • Promotion of environmentally low-impact real estate operations management
  • Development of community-contributing financial products
  • CO2 reduction through energy-saving equipment installation
  • Introduction of sustainable money lending operation standards
  • Implementation of local SME support programs
  • Building transparent information disclosure system
  • Expansion of environmentally considerate real estate acquisitions
  • Enhancement of employee health and safety management
  • Selection of investment projects based on ESG standards
  • Promotion of recycling and waste reduction