ENVALITH
株式会社イタミアート logo

itamiarts inc.

168A・Growth Market・Other Products

Official website
株式会社イタミアート logo
itamiarts inc.168A

Business

Itami Art Co., Ltd. was founded in 1999 and is a D2C company based in Okayama Prefecture that sells sales promotion products such as banner flags (nobori), curtains, booklets, and panels via the internet. It operates 18 B2B e-commerce sites under the "King Series" brand, primarily targeting corporate customers in the restaurant, retail, and advertising agency industries. The company completes the entire process in-house, from product planning and site construction to customer acquisition, sales, manufacturing, and shipping, achieving low prices, short delivery times, and support for small lot orders. It listed on the Growth Market of the Tokyo Stock Exchange in April 2024. For FY2025 (ending January 2025), net sales reached ¥3,605 million (up 15.8% year on year).

Business Model

EC sales (¥2,427 million) account for 67.3% of revenue, while wholesale sales (¥1,178 million) account for 32.7%. The proprietary in-house systems "DREAM-PACK" and "i-backyard" automate order processing and manufacturing, keeping personnel costs down, while mass production exceeding 1,000 orders and 10,000 units per day secures bargaining power to reduce material costs. On the flagship EC site "Nobori King," repeat orders account for approximately 75% of sales, forming a stable revenue base.

Company Strengths

Achieved the No. 1 position in Google organic search results for key purchasing keywords such as "nobori" (banner flag), "nobori-bata" (flag banner), "odan-baku" (horizontal banner), and "booklet binding" (as of February 2025). "Nobori King" attracts approximately 1.94 million monthly visits annually and receives over 93,000 orders per month, establishing a high-quality customer acquisition base that does not rely on paid advertising.

The company independently develops and operates its e-commerce site construction system "DREAM-PACK," manufacturing management system "i-backyard," and a dedicated automated data processing system for booklets. By systematizing the entire process from automatic print data checks to manufacturing instructions and shipping inspection, the company achieves high-variety, small-lot, high-volume production with minimal staffing. This enables both cost containment in operations and rapid delivery.

At the main e-commerce site "Nobori King," approximately 75% of sales are repeat orders from existing customers. About 90% of orders consist of small orders of 1 to 10 units, indicating low dependence on specific large customers. For FY2025 (ending January 2025), the number of transactions was 291,909 (up 14.8% year on year), and the average order value was ¥12,374 (up 0.7% year on year), showing stable growth.

ENVALITH's Perspective

Management stated that the Q1 FY2027 (ending January 2027) results of net sales of ¥1,375 million and operating profit of ¥49 million represent progress in line with the company's plan. However, it is worth noting that Q1 operating profit of ¥49 million represents only about 20% progress against the full-year operating profit forecast of ¥246 million, and the cumulative H1 forecast of ¥61 million (down 42.9% year-on-year) implies a substantial decline in interim profit. The plan is premised on a structure where profit concentrates in Q2 and Q3, making the realization of this seasonality the key to achieving the full-year target.

At the end of Q1 FY2027 (ending January 2027), short-term borrowings of ¥700 million were newly recorded, expanding total liabilities by ¥556 million from the previous fiscal year-end to ¥4,290 million. The equity ratio declined from 26.2% at the previous fiscal year-end to 23.7%. The long-term borrowings balance also remained elevated at ¥2,119 million, with interest expense of ¥8 million for the quarter (approximately ¥33 million on an annualized basis). The increase in borrowings accompanying continued capital expenditure is pushing up financial leverage, and managing interest-bearing debt under a thin-margin structure remains an important management challenge.

As external factors, continued price inflation, the impact on resource and energy prices from heightened tensions in the Middle East, and foreign exchange fluctuations are increasing uncertainty in the business environment. While there are signs of recovery in corporate promotional demand, a cautious stance toward promotional investment continues against the backdrop of price inflation, leaving a risk of customers curbing orders. In addition, rising raw material costs, logistics costs, and labor costs are pushing up cost of sales (¥919 million in Q1, with a cost ratio of 66.9%), and the profit environment remains challenging. SEO algorithm volatility risk also remains a structural vulnerability in customer acquisition.

Growth Strategy

Pursuing sustainable growth through four pillars: horizontal expansion of e-commerce sites, enhanced customer acquisition, manufacturing automation, and strengthened corporate sales

The company continues to invest in SEO measures and advertising expenses with the aim of increasing inflow to major e-commerce sites and expanding transaction volume. In Q1, revenue of ¥1,375 million was recorded, confirming that customer acquisition initiatives are contributing to sales.

The company is strengthening direct sales to corporate clients and aims to increase order unit price and frequency through deeper penetration of existing corporate accounts. This was explicitly cited as a factor behind Q1 revenue growth, and the initiative is ongoing.

Machinery, equipment, and vehicles (net) reached ¥997 million as of the end of Q1, up ¥252 million from the end of the previous fiscal year, reflecting continued capital investment. The company aims to improve profitability through increased production capacity and reduced manufacturing costs.

The company is promoting new customer acquisition and diversification of products handled through the launch of new e-commerce sites. Expansion into peripheral merchandise beyond SP (sales promotion) products broadens sales opportunities and contributes to reducing dependence on specific products.

By leveraging low-variety, large-lot production capacity through consolidation, the company is expanding its group-wide order fulfillment capability. Q1 progressed largely as planned, and assuming profit concentration in Q2 and Q3, the company aims to achieve full-year revenue of ¥6,000 million and operating profit of ¥246 million.

Last updated: July 17, 2026