Horai
Basic Information
- Stock Code
- 9679
- Industry
- Services
- Category Detail
- Insurance
- Prefecture
- Tokyo
- Establishment Year
- January 1928
- Listing Year
- April 1991
- Official Website
- http://www.horai-kk.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Agent Insurance Group, Japan Soken, TONE, Chuo International Group, Airi Corporation, Broadmind, FP Partner, Toho Remac, Sonocom, Advance Create
Overview
Horai is a diversified service company founded in 1928, possessing a stable business foundation centered on real estate leasing, tourist facility operations, and dairy product manufacturing and sales, as a long-established firm.
Current Situation
Horai recorded net sales of approximately ¥4.9 billion in the fiscal year ended September 2022, with major operations in insurance agency, real estate leasing, dairy product manufacturing and tourism at Senbonmatsu Ranch, and golf course management. The Senbonmatsu Ranch business accounts for about 35.7% of sales, providing stable community-based services. Financially, it has paid-in capital of ¥4.3 billion and net assets of approximately ¥8.6 billion, building a solid base. Focusing on tourist facilities and ranch operations in the Nasu Shiobara area, it contributes to local tourism promotion. After withdrawing from the crushed stone business, it concentrates on value enhancement in each segment, particularly developing original products in dairy. In sustainability, it promotes environmentally considerate facility operations and community contributions. Medium- to long-term, it aims to establish new revenue models by integrating tourism, dairy, and real estate businesses for stable growth. In 2020, it relocated its head office to Sakura Horiru Building to strengthen organization and improve efficiency.
Trivia
Interesting Facts
- Roots trace back to inheriting businesses from the prewar Jugo Bank
- Nasu Senbonmatsu Ranch spans an area equivalent to 178 Tokyo Domes
- Long-established firm balancing local focus and diversified operations
- Company's dairy products highly rated locally
- Golf courses sometimes host domestic tours
- Ranch features integrated hot springs and dining, appealing as tourism hub
- Sumitomo Mitsui Banking Group affiliates listed as major shareholders
- Sold Ginza Horai Building in 2019 to rationalize operations
- Rare company integrating insurance agency, dairy manufacturing, and real estate leasing
- Golf tournaments linked with local events
- Owns urban real estate and nature-rich tourist facilities
- Established position of high-quality dairy as souvenirs
- Actively engages in local environmental conservation
- History of stock splits and expansion measures
- Active in developing new sweets like fresh cookies
Hidden Connections
- Historical ties to inheriting failed businesses from prewar Jugo Bank
- Multiple Sumitomo Mitsui Banking Group companies as major shareholders providing management support
- Business model mutually supporting local tourism and dairy industry
- Long-term solid relations built with Nasu area local community
- Close regional collaboration in facility renovations and new developments
- Golf courses selected as key venues for domestic pro tours
- Promotes new product development fusing dairy technology and tourism
- Rare management system balancing Tokyo real estate investment and rural tourism promotion
Future Outlook
Growth Drivers
- Recovery in tourism demand and strengthened use of local tourism resources
- Brand expansion through new dairy product development
- Optimization and revenue growth of real estate portfolio
- Business efficiency improvement via digital technology adoption
- Increasing societal demands for sustainable management
- Service diversification and community contributions through local collaboration
- Increased investments in eco-friendly facilities
- Customer base expansion and new market development
- Diversification of insurance agency business and closer customer ties
- Expansion of new tourism services and experiences
- Strengthened focus on food safety and security
- Development of products fusing local resources
Strategic Goals
- Increase tourism and dairy sales by 30% from current levels
- Efficiency and revenue stabilization in real estate leasing
- 20% business efficiency improvement through digitalization
- Achieve 50% renewable energy adoption rate
- Strengthen business development centered on community coexistence
- Clarify and implement environmental load reduction targets
- Enhance brand power through new product development
- Promote employee-friendly workplace
- Target 1 million annual visitors to regional tourism events
- Improve customer satisfaction in insurance agency business
Business Segments
Real Estate Leasing Business Support
- Overview
- Provides office building leasing management and operations services.
- Competitiveness
- Stable tenant base and reliable management system
- Customers
-
- Corporate tenants
- Real estate management companies
- Construction companies
- Products
-
- Office leasing
- Management services
- Facility maintenance
Tourist Facility Operations Support
- Overview
- Business focusing on operations and planning support for local tourism centered on ranches and golf courses.
- Competitiveness
- Local ties and attraction power through tourism resources
- Customers
-
- Travel agencies
- Local tourism organizations
- Food and beverage providers
- Event operators
- Products
-
- Facility operations
- Event planning
- Dining services
- Lodging collaboration
Dairy Product Manufacturing and Sales
- Overview
- Manufactures dairy products from own ranch raw materials and sells to stores and as gifts.
- Competitiveness
- Quality control via own ranch and local recognition
- Customers
-
- Food retailers
- Restaurants
- Tourist facility stores
- Department stores
- Products
-
- Dairy products
- Dairy gift sets
- Dairy processed goods
Insurance Consulting
- Overview
- Provides sales of diverse insurance products and risk consulting.
- Competitiveness
- Detailed, community-based service response
- Customers
-
- Small and medium enterprises
- Sole proprietors
- General individuals
- Products
-
- Life insurance
- Casualty insurance
- Annuity insurance
- Health insurance
Competitive Advantage
Strengths
- Diversified stable business foundation
- Community-based tourism and dairy business
- Abundant real estate assets and leasing operations
- Long history and reliability
- Support system from Sumitomo Mitsui Banking Group
- Quality control strengthened by own ranch
- Enhanced attraction through local tourism collaboration
- High-specialty insurance agency business
- Stable customer base
- Utilization of diverse sales channels
Competitive Advantages
- Unique composite model of tourism, dairy, and real estate
- Ranch and golf operations leveraging local resources
- Funding and credit support from Sumitomo Mitsui major shareholder
- Risk diversification through diverse revenue sources
- Brand trust as historic long-established company
- Differentiation from competitors via community-based services
- Active investments like facility renovations and new annexes
- Stable revenue from abundant real estate portfolio
- High quality and recognition of original dairy products
- Flexible customer response and service customization
Threats
- Seasonal fluctuations and natural disaster risks in tourism
- Declining local demand due to aging population
- Real estate market volatility tied to economy
- Increase in competing golf courses and tourist facilities
- Intensifying price competition in dairy industry
- Regulatory tightening in insurance agency business
- Supply and price volatility risks for raw milk
- Rising environmental regulations and sustainability demands
- Tourism demand decline risks from novel infections etc.
- Potential service quality decline due to labor shortages
Innovations
2021: Eco-friendly new annex opens at Nasu Senbonmatsu Ranch
- Overview
- Opened a new annex considerate of environmental load reduction to enhance facility appeal.
- Impact
- Achieved increase in tourists and satisfaction
2020: Head office relocation to Sakura Horiru Building
- Overview
- Relocated head office to improve operational efficiency and rationalize space.
- Impact
- Improved business efficiency and employee work environment
2023: New dairy product development and sales start at Isetan Shinjuku Store
- Overview
- Developed new products like fresh cookies and began sales at Isetan Shinjuku etc.
- Impact
- Contributed to brand recognition and sales growth
2022: Ranch facility renovation and expansion of hot springs and dining
- Overview
- Renovated Nasu Senbonmatsu Ranch facilities and expanded hot springs and dining outlets.
- Impact
- Boosted attraction and strengthened tourism revenue
2024: Introduction of digital ticketing system
- Overview
- Introduced digital tickets for tourist facility admissions to improve convenience.
- Impact
- Enhanced customer convenience and reduced operational costs
2023: Golf course facility improvement project
- Overview
- Conducted renovations at Horai Country Club and Nishinasuno Country Club.
- Impact
- Improved player satisfaction and repeat rate
2022: Energy-saving equipment introduction in dairy production line
- Overview
- Introduced energy-saving production equipment to reduce environmental impact.
- Impact
- Reduced production costs and environmental load
2021: Online sales platform enhancement
- Overview
- Revamped EC site to expand online dairy sales.
- Impact
- Acquired new customers and increased sales
2023: Local collaboration tourism events
- Overview
- Planned and operated events for tourist attraction in collaboration with local entities.
- Impact
- Contributed to regional revitalization and visitor increase
2024: R&D enhancement for new product development
- Overview
- Advanced new technologies for dairy and sweets to diversify products.
- Impact
- Strengthened product competitiveness and customer satisfaction
Sustainability
- Natural environment conservation activities at Nasu Senbonmatsu Ranch
- Environmental load reduction via energy-saving equipment
- Tourism operations emphasizing coexistence with local community
- Waste reduction and recycling promotion
- New construction and renovation of eco-friendly facilities
- Social value creation through joint promotion with local industries
- Local job creation and talent development support
- Initiatives to reduce food loss
- Regular regional cleanup activities
- Efforts toward sustainable ranch operations
- Energy consumption efficiency improvements
- Environmental load reduction through digital transformation