Nissou Co.,Ltd.
1444・Growth Market・Construction
Reform Business
Housing renovation construction contracting and construction management business centered on the greater Tokyo metropolitan area. Core segment accounting for approximately 95% of group net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (completed construction revenue) - Cumulative Q3 FY2026 (ending July 2026) | ¥3,765 million | ¥3,592 million (same period prior year) | ↑ |
| Operating profit - Cumulative Q3 FY2026 (ending July 2026) | ¥29 million | ¥81 million (same period prior year) | ↓ |
| Net sales (completed construction revenue) - Full year FY2025 (ended July 2025) | ¥4,788 million | － | — |
| Operating profit - Full year FY2025 (ended July 2025) | ¥83 million | － | — |
| Goodwill amortization - Cumulative Q3 FY2026 (ending July 2026) | ¥12 million (group total) | ¥12 million (same period prior year, group total) | — |
Business Details
Provides restoration work upon move-out, renovation work, house cleaning, and maintenance work during occupancy for detached houses, multi-family housing, rental housing, and other properties. Main customers are small and medium-sized real estate companies (BtoB) in the greater Tokyo metropolitan area, with Reprice Inc. accounting for 10.5% of net sales as a key customer. Main subsidiaries are Yana Corporation Co., Ltd. and Sasaki Co., Ltd. Operates multiple business offices centered on Tokyo, Kanagawa, Saitama, and Chiba prefectures.
Recent Overview
Net sales rose 4.8% year on year on higher unit prices, but operating profit fell sharply by 64.3% due to a rising cost ratio and increased personnel costs.
In cumulative Q3 FY2026 (August 2025 to April 2026), unit prices per project were raised through new customer acquisition, strengthened sales capabilities, and enhanced training systems, resulting in completed construction revenue of ¥3,765 million (up 4.8% year on year), securing an increase in revenue. However, a decline in the number of construction orders received, an increase in the cost ratio, and higher personnel costs associated with staff increases combined to cause a substantial decline in operating profit to ¥29 million (down 64.3% from ¥81 million in the same period prior year).
Key Products
Growth Drivers
- Expansion of completed construction revenue through higher unit prices per project (cumulative Q3 FY2026: up 4.8% year on year)
- Expansion of order base through new customer acquisition, strengthened sales capabilities, and enhanced training systems
- Maintenance and expansion of sales scale through continued consolidation of Sasaki Co., Ltd.
- Expansion into the BtoC domain through the rollout of "Reform Pro" for general consumers
- Demand support from government subsidy programs promoting energy-saving and insulation renovations
- Expansion of business area through multiple offices in the greater Tokyo metropolitan area (Kanagawa, Saitama, Chiba, Miyagi)
Risks
- Declining trend in the number of construction orders received (continued through cumulative Q3 FY2026)
- Pressure on gross profit due to rising cost ratio
- Pressure on profits from increased personnel costs associated with staff increases (contributed to a 64.3% decline in operating profit)
- Structural constraints on construction capacity due to shortages of skilled craftsmen and construction management personnel
- Sharp increases in prices of materials and housing equipment, and shortages of materials such as paint amid the situation in the Middle East
- Regional concentration risk in the greater Tokyo metropolitan area (majority of construction projects concentrated in areas near Tokyo)
- Sales dependency on a key customer (Reprice Inc., accounting for 10.5% of net sales)
Last updated: October 28, 2025