Asax

Basic Information

Stock Code
8772
Industry
Other Financial Services
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
July 1969
Listing Year
February 2007
Official Website
https://www.asax.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
D&M Company, Yasuhara Chem, Tohoku Chemical, Ainabo HD

Overview

Asax is a major specialized real estate secured loan company founded in 1969, featuring low default rates and store expansion centered in the Tokyo metropolitan area.

Current Situation

Asax recorded operating profit of ¥6.75 billion, ordinary profit of ¥5.06 billion, net assets of ¥46.3 billion, and total assets of ¥109.5 billion for the fiscal year ended March 2024. Headquartered in Shibuya-ku, Tokyo, it operates 6 stores in the Tokyo metropolitan area, including Tokyo, Kanagawa, and Saitama prefectures. Since its establishment, it has specialized in real estate secured loans, achieving an extremely low default rate of 0.00% for the fiscal year ended March 2024. It has also entered the credit guarantee business, steadily pursuing a mid-risk, mid-return business model. It is diversifying revenue through partnerships with investees and expansion of the credit guarantee business. Moving forward, it plans to expand its market share in the Tokyo metropolitan area and venture into new businesses, aiming to strengthen its financial foundation and achieve stable growth.

Trivia

Interesting Facts

  • Rare company that has maintained a 0.00% default rate since establishment.
  • Strategically concentrated in the metropolitan area following withdrawal from rural areas after the bubble period.
  • Boasts high industry expertise as a pure-play real estate secured loan provider.
  • Selected early for the Ministry of Economy, Trade and Industry's industrial finance committee.
  • Achieved business diversification through entry into credit guarantee business.
  • Strong partnerships with financial institutions form the foundation of stable management.
  • Firm management despite small scale of 64 employees.
  • Nihonbashi branch newly established in 2014 by merging Ginza and Ueno branches.
  • Deploys unique products such as expert support loans in addition to community focus.
  • Emphasizes financial trustworthiness and builds long-term customer relationships.

Hidden Connections

  • Credit guarantee collaboration with local financial institutions supports revitalization of the metropolitan real estate market.
  • Expanding credit guarantee business amid strengthened financial regulations to tap into new market needs.
  • Changed name in 1983 and to current name in 1995, successfully establishing the brand.
  • Mid-risk, mid-return model is attracting attention as a model case in the industry.
  • Strategic withdrawal and concentration after bubble collapse contributed to maintaining financial soundness.
  • Strong dependence on metropolitan loan market makes it sensitive to regional economic trends.
  • Online loan application system is pioneering in Japan's real estate secured loan industry.
  • Expansion of credit guarantee services also contributes to supporting financial institutions' credit judgments.

Future Outlook

Growth Drivers

  • Increase in new loan demand due to active metropolitan real estate market
  • Revenue diversification through expansion of credit guarantee services
  • Operational efficiency and customer convenience improvement via online systems
  • Growing needs for SME support
  • Enhanced risk management through AI and other technologies
  • Potential selective re-entry into rural markets
  • Sustainable management pursuing social responsibility
  • Strengthening value-added services through expert collaboration
  • Development and differentiation of new loan products
  • Improved market trust through financial regulation compliance
  • Development of diverse customer segments
  • Increase in lending demand accompanying economic recovery

Strategic Goals

  • Achieve over 50% market share expansion in the metropolitan area
  • Raise revenue ratio from credit guarantee business to 30%
  • Maintain 0.00% default rate using AI
  • Achieve over 80% online loan application usage rate
  • Strengthen ESG management and further collaboration with local communities
  • Diversify revenue sources through new product development
  • Promote employee diversity and capability development
  • Expand financial support contributing to sustainable economic growth
  • Strategic deployment of regional revitalization support business
  • Continuous promotion of financial technology investments

Business Segments

Credit Guarantee Business

Overview
Partners with financial institutions to provide credit guarantee services for real estate secured loans. Achieves risk diversification and customer support.
Competitiveness
Gained trust through years of industry experience and low default rates
Customers
  • SMEs
  • Financial institutions
  • Housing loan users
  • Real estate agents
  • Sole proprietors
  • Construction companies
  • Care providers
  • Retailers
  • Service providers
  • Local governments
  • Consultants
  • Tax experts
  • Professional offices
Products
  • Real estate secured loan guarantees
  • Credit guarantee services
  • Lending consulting
  • Risk management services
  • Business funding support
  • Credit investigations
  • Claims management
  • Repayment plan support
  • Guarantee continuity management
  • Contract guarantee handling
  • Credit insurance collaboration
  • Credit control
  • Non-performing loan handling

Funding Support

Overview
Provides real estate secured loans and funding consultation tailored to diverse funding needs.
Competitiveness
Strength in quick financing and close customer support
Customers
  • Corporate executives
  • Sole proprietors
  • Real estate investors
  • Local government officials
  • Construction companies
  • Mid-sized companies
  • Startups
  • Financial institutions
  • Professional experts
Products
  • Real estate secured loans
  • Short-term financing
  • Equipment investment loans
  • Business funding loans
  • Lending consultation services
  • Financial consulting

Risk Management Services

Overview
Provides various management services to reduce risks associated with real estate-related lending.
Competitiveness
Specialized default risk analysis technology
Customers
  • Financial institutions
  • SMEs
  • Construction companies
  • Real estate agents
  • Investors
Products
  • Credit investigations
  • Claims management
  • Lending risk assessment
  • Risk diversification strategies
  • Guarantee issuance

Regional Financial Support

Overview
Provides financial support services for regional economic revitalization and engages in community-based businesses.
Competitiveness
Flexible financial plans tailored to regional needs
Customers
  • Local governments
  • Local SMEs
  • Local financial institutions
  • Chambers of Commerce
Products
  • Loans for regional revitalization
  • Regional collaborative guarantees
  • Funding support

Business Succession Support

Overview
Provides services to support funding and planning necessary for business continuity.
Competitiveness
Comprehensive support through expert collaboration
Customers
  • SMEs
  • Business successors
  • Management consultants
Products
  • Business succession loans
  • Asset valuation services
  • Succession planning support

Living Funds Financing

Overview
Provides living funds financing and flexible loan services for individuals.
Competitiveness
Flexible repayment terms and quick response
Customers
  • Individual customers
  • Self-employed
Products
  • Living funds financing products
  • Short-term loan services

Financial Institution Partnership Support

Overview
Jointly provides credit guarantee and risk assessment services through partnerships with other financial institutions.
Competitiveness
Industry network and coordination capabilities
Customers
  • Banks
  • Credit unions
  • Non-bank financial institutions
Products
  • Credit guarantee contracts
  • Joint lending projects
  • Risk assessment support

Housing Loan Related Business

Overview
Deploys housing-related lending and credit guarantee services. Responds promptly to customer needs.
Competitiveness
Diverse housing-related financial services
Customers
  • Home buyers
  • Real estate agents
  • Financial institutions
Products
  • Home reform loans
  • Housing collateral loans
  • Credit guarantee options

SME Lending

Overview
Provides funding loan services for SMEs tailored to individual needs.
Competitiveness
Flexible loan terms and quick screening
Customers
  • SME executives
  • Sole proprietors
  • Startups
Products
  • Business funding loans
  • Equipment investment support loans
  • Short-term working capital loans

Claims Management Services

Overview
Supports proper management and collection of lending claims. Contributes to reducing financial risks.
Competitiveness
Efficient claims management expertise
Customers
  • Financial institutions
  • Lending businesses
  • Real estate investors
Products
  • Claims collection agency
  • Non-performing claims management
  • Risk reduction measures

Asset Valuation and Appraisal Services

Overview
Supports lending and investment decisions through appropriate valuation of real estate assets.
Competitiveness
High-precision valuation technology and experienced appraisers
Customers
  • Real estate agents
  • Financial institutions
  • Investors
Products
  • Real estate appraisal valuation
  • Appropriate asset valuation
  • Risk assessment

Business Restructuring Support

Overview
Broad financial support including restructuring services for companies in management crisis.
Competitiveness
Extensive restructuring support expertise
Customers
  • Failing companies
  • Restructuring experts
  • Financial institutions
Products
  • Restructuring plan development support
  • Debt restructuring support
  • Cash flow improvement services

Competitive Advantage

Strengths

  • Specialized expertise in real estate secured loans
  • Extremely low default rate
  • Store expansion specialized in the metropolitan area
  • Years of industry experience and track record
  • Diverse customer base of corporations and individuals
  • Deployment of credit guarantee services
  • Quick screening and loan execution
  • Stable financial foundation
  • Flexible product design
  • Community-based customer service
  • Strong network of partner financial institutions
  • Services for expert support
  • Diverse loan product lineup
  • Credit risk management capabilities
  • Support capabilities for SMEs

Competitive Advantages

  • Risk management strength from maintaining 0.00% default rate
  • Efficient store deployment strategy concentrated in the metropolitan area
  • Revenue diversification through credit guarantee business
  • Established mid-risk, mid-return business model
  • Improved management efficiency through withdrawal from rural areas and concentration in the metropolitan area
  • Strong partnerships and synergy effects with financial institutions
  • Loan product development capabilities for diverse needs
  • Services for both SMEs and individual customers
  • High expertise in credit investigations and claims management
  • Quick loan decisions and customer response speed
  • Provision of unique services such as business succession support
  • Expertise in community-rooted financial support
  • Creditworthiness from solid financial base
  • Comprehensive service system through expert collaboration
  • High-precision asset valuation capabilities

Threats

  • Increased customer burden from rising housing loan interest rates
  • Real estate market price fluctuation risks
  • Increasing competitors and intense market competition
  • Strengthened financial regulations and legal amendment risks
  • Expansion of credit guarantee loss risks
  • Risk of rising default rates due to deteriorating economic environment
  • Intensified price competition from new entrants
  • Decline in competitiveness from delayed technology adoption
  • Delayed response to diversifying customer needs
  • Risk of real estate value decline due to natural disasters, etc.
  • Rising funding costs risks
  • Increased investment burden for digitalization

Innovations

2024: Expansion of Credit Guarantee Services

Overview
Expanded credit guarantee services by strengthening partnerships with major financial institutions to meet diverse customer needs.
Impact
Achieved reduction in credit risk and increase in loan contracts

2023: Introduction of Online Loan Application System

Overview
Introduced an online loan application system to improve customer convenience and promote operational efficiency.
Impact
Shortened loan application processing time by 30%

2022: AI-Powered Credit Risk Assessment

Overview
Implemented an AI-based credit risk assessment model to enhance default risk management.
Impact
Maintained default rate and improved credit accuracy

2021: Shinjuku Branch Opening for Metropolitan Area Expansion

Overview
Opened Shinjuku branch as a key location to strengthen customer contact and expand market share.
Impact
New customer acquisitions increased by approx. 20%

2020: Strengthened Collaboration with Credit Guarantee Networks

Overview
Strengthened collaboration with credit guarantee associations, etc., to support customers in obtaining credit guarantees.
Impact
Reduced loan recovery risks

Sustainability

  • Energy-efficient office operations
  • Consideration of social responsibility investments
  • Economic revitalization support through collaboration with local communities
  • Promoting employee diversity and creating a comfortable work environment
  • Sustainable economic support through appropriate loan screening