Ryoyo Ryosan Holdings, Inc.
167A・Prime Market・Wholesale Trade
Business
Ryosan-Hishoyo Holdings is a holding company established in April 2024 through the business integration of Ryosan Co., Ltd. and Hisco Corporation. The group consists of the company itself, 28 consolidated subsidiaries, and 2 equity-method affiliates, and operates two segments: the "Device Business" (procurement and sales of semiconductors and electronic components, accounting for 70.8% of net sales) and the "Solution Business" (sales and construction of IT equipment and systems, accounting for 29.2%). Its customer base ranges widely from manufacturing, automotive, and industrial equipment makers to corporate IT departments, and it maintains a global sales network spanning Asia, the United States, and Europe. In April 2026, two operating subsidiaries merged to begin unified operations as "Ryosan-Hishoyo Corporation."
Business Model
The company has concluded distributor/agency agreements with major manufacturers such as Renesas Electronics, Mitsubishi Electric, NVIDIA, and Intel, purchasing semiconductors, electronic components, and IT products for sale to customers. Beyond simple distribution functions, it creates added value by providing solutions such as technology proposals for edge AI and security, PoC (proof of concept) support, and IT infrastructure construction. Revenue is centered on sales margins, with a structure aimed at improving profit margins through a mix shift toward higher-margin products.
Company Strengths
Steady progress achieved in both the volume and quality of customer touchpoints over the two years since the April 2024 business integration. Through the April 2026 merger of operating subsidiaries (Ryosan Yoshuo Corporation), the sales structures and product lineups of both companies are being unified, accelerating the creation of procurement and sales synergies. Order intake expanded substantially to ¥399,527 million (up 19.0% year on year) in FY2026 (ending March 2026).
The company operates local subsidiaries in Hong Kong, Singapore, Malaysia, Thailand, India, South Korea, China, the United States, and Europe, building a multi-site network capable of addressing customer needs both domestically and overseas. This sales network was built up through many years of business development and represents a proprietary asset that is difficult for competitors to replicate in a short period.
In the Device business, sales decreased 1.9% year on year to ¥254,682 million, while operating profit increased 27.9% year on year to ¥5,732 million due to a rise in the sales mix of higher-profitability products. In the Solution business as well, operating profit rose 19.9% year on year to ¥4,368 million on the expansion of high-value-added projects in fields such as AI, confirming an actual improvement in profit margins.
ENVALITH's Perspective
Performance Trend
Net sales for FY2026 (ending March 2026) were ¥359,948 million (up 0.0% year on year), essentially flat. The Device business remained at ¥254,682 million (down 1.9% year on year) due to delayed demand recovery in automotive and industrial equipment semiconductors, while the Solutions business was solid at ¥105,265 million (up 5.0% year on year), supported by expanding IT investment related to AI and cloud. Gross profit improved from ¥34,935 million to ¥37,599 million, reflecting a successful mix shift toward higher-margin products. Operating margin improved from 2.4% to 2.8%. On the other hand, net income attributable to owners of parent fell to ¥7,440 million (down 20.7% year on year) due to the absence of the prior-period gain on bargain purchase and gain on sale of investment securities. Regarding the external environment, semiconductor inventory adjustments showed signs of improvement but had not yet reached a full recovery, while yen depreciation and resource price volatility continued to weigh on profitability.
Growth Strategy
Starting from the integration of operating subsidiaries, growth is accelerating along three axes: expanded customer touchpoints, integration synergies, and investment in AI-driven growth areas.
Ryosan Co., Ltd. and Ryoyo Electro Corporation merged effective April 1, 2026, forming "Ryosan Hisho Corporation" (Ryosan Hisho Kabushiki Kaisha). The integration unifies the customer bases, procurement networks, and personnel of both companies, simultaneously achieving management efficiency, cost reduction, and expanded customer touchpoints. Effects have already begun to emerge during the preparation period for the integration, with companywide expense adjustments shrinking from ¥418 million to ¥27 million.
Against a backdrop of corporate demand for DX promotion, operational efficiency, and enhanced security, the company is actively securing IT infrastructure projects leveraging generative AI and cloud technologies. Solutions business orders for FY2026 (ending March 2026) reached ¥134,258 million, a substantial increase of 39.0% year on year, with the acquisition of high-value-added projects also contributing to improved profit margins.
Amid a decline in low-margin products such as those for TVs and OA equipment, the company is promoting a shift in sales composition toward relatively higher-profitability products and pursuing new project acquisitions. In FY2026 (ending March 2026), the Devices business achieved segment profit of ¥5,732 million, up 27.9% year on year, even as sales declined 1.9% year on year. However, responding to Renesas's notice to terminate the distributorship agreement has become the most critical issue going forward.
At the Board of Directors meeting on May 14, 2026, the company resolved to cancel 4,000,000 treasury shares (7.41% of total shares issued), with the cancellation scheduled for May 25, 2026. Following the cancellation, total shares issued will be 50,000,000. The company plans to maintain the annual dividend at ¥140 per share for FY2027 (ending March 2027) as well, demonstrating a commitment to continued shareholder returns even amid an undetermined earnings forecast.
Last updated: July 19, 2026