NS Group (Cap: Y86 Bn) is a rent guarantor that went public on December 16, 2025, on the TSE Prime market. It features an attractive financial profile, with 53% of recurring revenues, a high EBITDA margin of 44%, and a strong ROE of 27%.

I see many long-term investment merits in NS, but there are several risks that some investors may view as difficult to overcome. I therefore outline these risks first (after the company description). My investment thesis, which follows, explains why I believe these concerns can be addressed. Ultimately, many of the company’s current issues could be mitigated if its unique business model continues to support sustainable growth.

Who is NS?

NS Group operates rent guarantee services via its subsidiary, Nihon Safety, acting as a substitute for joint guarantors.

In the past, when renting an apartment in Japan, it was common to be told, “Please have your father or a relative act as your joint guarantor.” But with nuclear families and aging demographics, it has become harder to find such guarantors.

That’s where Nihon Safety comes in:

The benefits to tenants and landlords:

Tenants:

Are freed from the hassle of asking someone to be their joint guarantor.

Owners/landlords:

Can offload the risk of rent arrears to Nihon Safety.

Nihon Safety receives guarantee fees (initial/one-time and renewal/recurring) from tenants.

If a tenant falls behind on rent, Nihon Safety advances the payment (subrogation) to the landlord, and then seeks recovery from the tenant afterward.

My client note discusses the potential risks and stock drivers in detail. If you’re interested in learning more about NS and its growth potential, I’d like to invite you to experience my service—completely free of charge. I am confident that once you discover the value, convenience, and quality I offer, you’ll be glad you gave me a try. Some of my clients who have a dedicated Japan research team find my take unique and actionable.

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