ENVALITH
新都ホールディングス株式会社 logo

Shinto Holdings Inc.

2776・Standard Market・Wholesale Trade

Official website
新都ホールディングス株式会社 logo
Shinto Holdings Inc.2776

Business

Shinto Holdings Co., Ltd. originated as a casual wear company founded in 1984 and has pursued a business transformation since 2017. It currently operates three segments: the Trading Business, centered on recycling trade of waste metals (iron, aluminum, copper, stainless steel, etc.) and waste plastics (PET, etc.); the Apparel Business, comprising casual wear wholesale and brand licensing; and the Real Estate-Related Services Business, which provides inbound real estate brokerage services targeting Greater China and Chinese residents in Japan. In May 2024, the company made Kitayama Shoji Co., Ltd. (Nagano Prefecture) a subsidiary, incorporating domestic recycling collection and processing functions, which substantially expanded the group's business scale. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

In the trading business, the company purchases, collects, sorts, and processes scrap metal and waste plastics domestically before exporting them to China, South Korea, and Southeast Asia, earning revenue from the trading margin. The consolidation of Kitayama Shoji as a subsidiary has strengthened the domestic procurement network. The real estate-related services business is maintained as a complementary, high-margin model that earns real estate brokerage fees and development income from customers in Greater China. The apparel business is primarily driven by brand licensing income.

Company Strengths

In May 2024, the company made Kitayama Shoji Co., Ltd. (50.1%) a subsidiary through a simplified share exchange. As a result of this consolidation effect, trading business revenue reached ¥12,161 million, up 93.91% year on year, and total group revenue more than doubled from ¥12,297 million in FY2025 (ended January 2025) to ¥27,939 million in the following FY2026 (ended January 2026).

The company has progressively built partnerships with major domestic and overseas industry players, including a three-way partnership with Nansei Steel Co., Ltd. and Nippon Kinzoku Kosan (August 2021), and a business alliance and general agency agreement with Zhejiang Julong Co., Ltd. of China (March 2023). This has diversified procurement and sales channels and established a stable trading foundation.

The real estate-related services business has a highly profitable structure, generating segment profit of ¥103 million against revenue of ¥185 million (a profit margin of approximately 55.7%). Against a backdrop of recovering purchasing appetite among Greater China customers following the relaxation of inbound border control measures, revenue has been on an expansionary trend, up 45.24% year on year.

ENVALITH's Perspective

In Q1 of FY2027 (ending January 2027), net sales reached ¥18,849 million, more than 4.3 times the level of the same period last year, but operating profit was only ¥70 million, giving an operating margin of just 0.37%. This extremely thin margin structure, with a cost-of-sales ratio of 97.9%, carries the risk of an immediate slide into losses should external factors such as a decline in metal scrap market conditions or exchange rate fluctuations hit directly. Achieving the full-year operating profit forecast of ¥784 million (margin of 1.6%) presupposes a Q1 progress rate of only 8.9% and a substantial weighting toward the second half, warranting scrutiny of the likelihood of achievement.

Of the ¥64 million in ordinary profit recorded in Q1 of FY2027 (ending January 2027), ¥41 million was foreign exchange gains arising from the period-end revaluation of foreign-currency-denominated assets, meaning that underlying ordinary profit excluding this effect was only about ¥23 million. There is an aspect in which exchange rate fluctuations (yen depreciation), an external factor, have boosted earnings, and there is a risk that a shift toward yen appreciation could instead generate foreign exchange losses. Given that the same period last year recorded a foreign exchange loss of ¥51 million, close attention should be paid to the high sensitivity to exchange rate movements.

At the end of Q1 of FY2027 (ending January 2027), accounts payable stood at ¥4,767 million, an increase of ¥2,878 million from the end of the previous fiscal year, while total assets swelled to ¥16,449 million. The equity ratio declined from 24.25% (at the end of the previous fiscal year) to 20.41%. Long-term borrowings also increased by ¥471 million from the end of the previous fiscal year to ¥2,798 million, reflecting a continued rise in financial leverage associated with M&A and business expansion. The rapid expansion of sales has led to a swelling of working capital, and cash flow management and the trend in funding costs will be key points to watch going forward.

Growth Strategy

Expanding the waste resource trading network through M&A and industry alliances to transform into a comprehensive recycling company

Through the consolidation of Ryuichi Shoji (deemed acquisition in September 2025) and Eishin Shoji (deemed acquisition in December 2025), metal recycling business sales grew 344.67% year-on-year to ¥17,541 million. The company will continue strengthening business alliances with domestic and overseas metal scrap dealers, aiming to further expand procurement and sales channels.

In addition to the real estate brokerage and management business targeting inbound demand from the Greater China region, the demolition business (buildings, houses, etc.) operated by group companies has been incorporated into this segment, promoting contribution to a circular society and expansion of the business domain. The Q1 segment profit margin remained high at approximately 63%, and synergies with the demolition business are expected.

A new AI (domestic sales and leasing of GPU equipment) business has been launched within the "Other" segment. In Q1 of FY2027 (ending January 2027), sales in the "Other" segment reached ¥732 million (compared to negative ¥4 million in the same period of the previous year), with the segment achieving profitability with a segment profit of ¥59 million. The company aims to diversify revenue in combination with existing trading businesses such as apparel, daily necessities, and alcoholic beverages.

By resolution of the Ordinary General Meeting of Shareholders on April 24, 2026, accumulated deficit was eliminated through a reduction of capital reserves, turning retained earnings positive. The dividend forecast for FY2027 (ending January 2027) remains at ¥0, but the normalization of the financial base has expanded the range of future shareholder return options. As a subsequent event, 1,000,000 shares from stock acquisition rights were exercised as of June 4, 2026, bringing the total number of issued shares to 54,877,500.

Last updated: July 17, 2026