■Coyurentia 7081 Business Overview
1. business segment
Currently, there are four business segments disclosed: rental-related business, ICT business, space design business, and product sales business, and their respective sales ratios (results for the fiscal year ending 2023/12) were 59.3% rental-related, 12.6% for ICT, 16.1% for space design, and 12.0% for product sales.
The company is developing business nationwide, but the sales ratio in the Tokyo metropolitan area is relatively high for its main rental-related business. Also, by company responsible for each business, the parent company and the subsidiary CO-EUROGICS Co., Ltd. (logistics) are responsible for rental-related matters, the subsidiaries Koyu Inotex Co., Ltd. and Inotex Business Solutions are each responsible for ICT, the subsidiary ONE Designs is responsible for space design, and the subsidiaries Hiroyu Bussan Co., Ltd. ※ and Koyu Service Co., Ltd. are responsible for product sales, respectively.
*A separate company from the parent company Hirotomo Bussan (newly established and split in 2009/4).
(1) Rental related business
Rental-related matters can be divided into two categories as a breakdown: a business that rents FF&E and an office solution business that provides relocation support and sales of reused products. The office solution business is a business that provides total support from office relocation to cleaning up unnecessary items, and furthermore, unnecessary furniture/fixtures and leased FF&E, etc. generated by cleaning up these are sold as used goods through the reuse shop “Lista” (6 physical stores+web) operated by the company. The main destinations of the main rental business are construction, offices, and events, and their respective sales ratios (ratio to segment sales, results for the fiscal year ending 2023/12) are 52% for construction, 20% for offices, 19% for events, and 9% for others.
1) Construction Market
Generally, in the construction rental market, there are many companies that rent various equipment and products such as construction machinery, scaffolding, unit houses, etc., but the company rents FF&E and even solar power generation systems for temporary offices at construction sites under construction. Even with the same rental for construction, the market is different from renting scaffolding, construction equipment, etc. The company's standard rental period is around 6 to 18 months.
Our main clients include 5 major general contractors such as Kashima ＜1812＞, and we do business with various major subcontractors (electricity: Kandenko ＜1942＞, Kinden ＜1944＞, etc., air conditioning: Takasago Thermal Engineering ＜1969＞, Sanki Kogyo ＜1961＞, etc., hygiene: Hibiya General Equipment ＜1982＞, etc.) and plant companies.
2) Office market
FF&E is rented for events, limited-time projects, satellite offices, telework, etc. carried out by companies. The main customers are temporary staffing companies, administrative agencies (contract work), small and medium-sized enterprises, etc. The standard rental period is about 1 week to 6 months.
3) Event market
FF&E is rented when various events such as sports, entertainment, business, and conventions are held. The main customers are event construction, planning/operation/production production companies, etc. The standard rental period is about 1 day to 1 month, and the rental period is short compared to the construction market and office market.
(2) ICT business
The ICT business field, which was included in the “rental related business” until the 2022/12 fiscal year, was determined as a future growth field and divided into independent business segments from the 2023/12 fiscal year. Specialized engineers with vendor certifications and national qualifications such as “communication,” “radio waves,” and “electricity,” provide total support for the customer's ICT environment. They also rent ICT equipment, starting with PCs, and network design/construction for offices, event venues, and construction site offices, repair and support in the event of trouble, and maintenance after installation. Furthermore, in addition to providing document services, it is also entering the “e-sports” field where future growth is expected.
(3) Space design business
We provide a one-stop service from planning and design of condominium galleries at the time of condominium sales to demolition, and then carry out FF&E rentals, product sales, etc. Also, although the amount of money is small, they are also renovating condominiums, and they are narrowing it down to niche fields (for foreigners, etc.). There are few companies that combine expertise in architecture and design with multilingual support, which is the company's strength.
(4) Merchandise sales business
It is a business that sells various products centered around FF&E, and its main business partners include postal services, government offices, schools, etc. Since bidding is common in these markets, profit margins are not very high. We are also focusing on services such as “office relocation/layout change,” and in addition to government offices, sales growth for private companies can be expected.
2. Main competitors
In the main construction rental and event rental markets, it mainly competes with Nikken Lease Industry Co., Ltd. and Design Arc Co., Ltd. (a subsidiary of Daiwa House Industry ＜1925＞), but while the company specializes in FF&E rentals, the big difference is that Nikken Lease Kogyo also rents relatively large materials such as lightweight temporary equipment for construction and unit houses.
Similarly, in the office rental market, in addition to Nikken Lease & Engineering and Design Arc, competitors such as the emerging Office Busters Co., Ltd. and Class Co., Ltd. are increasing. Meanwhile, in this market, it seems that there are still many cases where users make purchases instead of rentals, but if you think about this point the other way around, it can also be said that there is a possibility that the office rental market will grow further in the future.
Also, in ICT-related matters, it competes with Orix Rentech Co., Ltd., Pacific Net ＜3021＞, Yokogawa Rent-a-Lease Co., Ltd., etc. with manufacturers at the top, but since the ratio of manufacturers is reasonably high in this field, there seems to be room for growth.
There are many companies entering the space design market, but they mainly compete with condominium developer companies. The company is independent and is characterized by being able to carry out everything from planning/design/design to construction.
(Written by FISCO Visiting Analyst Noboru Terashima)