Nissou Co.,Ltd.
1444・Growth Market・Construction
Business
Nissow Co., Ltd. was founded in 1987 and is listed on the Growth Market of the Tokyo Stock Exchange as a housing renovation company. The group comprises the company, four subsidiaries, and one affiliate, and operates three segments: (1) Renovation Business (restoration and renovation construction contracting centered on the greater Tokyo area), (2) Real Estate Distribution Business (sales, brokerage, and buy-resell operations in the Shonan area), and (3) Real Estate Construction Business (custom-built and speculative housing centered on Nasushiobara City, Tochigi Prefecture). Its main customers are small and medium-sized real estate companies (BtoB), and in recent years it has also expanded into the BtoC domain targeting general consumers through "Reform Pro" (Rifomu Puro). Consolidated net sales for FY2025 (ending July 2025) were ¥5,280 million.
Business Model
In the reform (renovation) business, the company does not maintain in-house construction capabilities, but instead leverages a network of outsourced specialist contractors across various construction fields to expand orders while controlling fixed costs. In the real estate distribution business, the company generates fee income and buy-sell margins through brokerage and buy-resale operations. In the real estate construction business, the company supplies custom-built and spec-built homes, aiming to maximize group-wide synergies by building a circular business model of "build, renovate, and distribute" across the three businesses.
Company Strengths
Starting from its head office in Setagaya-ku, Tokyo, the company has expanded sales offices to Kanagawa (Koza-gun and Yokohama), Saitama (Saitama City and Asaka), Chiba (Funabashi), and Miyagi (Sendai). Completed construction revenue in the reform (renovation) business for FY2025 (ending July 2025) was ¥4,788 million (up 8.7% year on year), establishing a stable order base.
The company successively made subsidiaries of Yana Corporation in May 2023, Sasaki Co., Ltd. in June 2024, and Heisei Housing Co., Ltd. in August 2024. Through M&A, it built a three-segment structure comprising Reform (Renovation), Real Estate Distribution, and Real Estate Construction, expanding sales revenue from ¥4,166 million in FY2023 to ¥5,280 million in FY2025.
At the end of FY2025 (ending July 2025), the equity ratio stood at 49.3%, with cash and cash equivalents of ¥1,879 million. The company has also entered into a commitment line agreement (total amount ¥900,000 thousand) with three partner financial institutions, securing ample liquidity for working capital and investment funds.
ENVALITH's Perspective
Performance Trend
Revenue grew for four consecutive fiscal years, from ¥2,881 million in FY2021 to ¥5,280 million in FY2025, but growth has effectively stalled in the nine-month cumulative period through Q3 of FY2026 (ending July 2026), with revenue of ¥3,957 million (up 0.1% year on year). The full-year forecast of ¥5,515 million (up 4.5% year on year) remains unchanged, but profitability has deteriorated sharply from the prior-year period, with an operating loss of ¥21 million and net loss attributable to owners of the parent of ¥75 million. This reflects an increase in SG&A expenses (up ¥75 million year on year), weakness in the two real estate distribution and construction businesses, and a goodwill impairment loss of ¥21 million recorded during the period. In terms of the external environment, soaring prices of materials and paint, a shortage of skilled workers, and weaker consumer sentiment due to rising mortgage interest rates are weighing on performance. Net income of ¥203 million in FY2025 depended on a one-time gain of ¥268 million from the sale of shares in an affiliated company, indicating that underlying earnings power remains at a low level.
Growth Strategy
Diversification of businesses and strengthening of the earnings base through M&A, new brand development, and franchise expansion
Acquired Daiichi Giken, which has decades-long order relationships with major developers primarily in the Tokyo metropolitan area, for an acquisition cost of ¥402,500 thousand (completed on May 7, 2026). The company aims to expand its presence in the market for extending the lifespan and regenerating condominiums, and to create group synergies. As the deemed acquisition date is July 31, 2026, contribution to earnings is expected to begin from FY2027 (ending July 2027) onward.
The company is rolling out "990-Man-en no Ie" (the ¥9.9 Million House) as a price-focused custom-built and spec-built housing brand, aiming to clarify its target customer segment and achieve differentiation. It has implemented community-based awareness-building measures through SNS, signage, and advertising vehicles, but sales for the cumulative nine months of FY2026 (ending July 2026) were ¥147 million (down 25.1% year on year), significantly below plan, and it is taking time to translate these efforts into actual orders and sales results.
As a new revenue model for the renovation business, the company is exploring the rollout of the franchise business "Cross-yasan." It aims to expand its business area through a network of franchised stores and to grow sales scale under an asset-light model. This is currently at the exploratory stage, and no concrete contribution to earnings has yet been confirmed.
An existing strategy to raise unit prices for construction work through new customer development, strengthening the sales force, and enhancing the training system. In the cumulative nine months of FY2026 (ending July 2026), completed construction revenue rose 4.8% year on year due to higher unit prices, but operating profit fell 64.3% year on year to ¥29 million due to a decline in the number of construction orders received, an increase in the cost ratio, and higher personnel expenses, indicating that the effect on earnings improvement has been limited.
Last updated: July 17, 2026