ENVALITH
クリエイト株式会社 logo

CREATE CORPORATION

3024・Standard Market・Wholesale Trade

Official website
クリエイト株式会社 logo
CREATE CORPORATION3024

Business

Create Co., Ltd. was founded in 1948 and marked its 110th anniversary of establishment in January 2026, operating as a specialized trading group for piping & plumbing equipment. It handles a wide range of construction materials, from pipes, fittings, and valves to housing equipment, serving residential, factory, building, hospital, school, and public infrastructure customers nationwide. The group comprises four consolidated subsidiaries (including manufacturing subsidiary Daidore Corporation and logistics subsidiary Haneishi Co., Ltd.), forming an integrated group structure encompassing manufacturing, logistics, and construction functions. Its major customer is Watanabe Pipe Co., Ltd. (accounting for 16.5% of net sales), along with other piping & plumbing equipment distributors and construction companies. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Of net sales of ¥37,323 million, approximately 99% is accounted for by the piping and plumbing materials (kankan kizai) segment. The company purchases piping and plumbing materials from manufacturers (purchases of ¥30,374 million) and sells them wholesale to construction contractors and others through its nationwide sales offices and distribution centers. Gross profit margin has remained around 17.4%. The company also has a vertically integrated earnings structure, in which manufacturing subsidiary Daidore manufactures its own brand "Tororo-jirushi" products, and Create acts as the exclusive sales agent selling high-value-added products.

Company Strengths

Consolidated subsidiary Daidore Co., Ltd. manufactures drainage fittings, drainage equipment, manholes, and other "Toro Mark" products, which Create distributes nationwide as the exclusive sales agent. Backed by this historic brand, which received designation from the Ministry of Construction (Kensetsusho) in 1953, the company has achieved both manufacturing cost reductions (including supplier reviews) and pass-through of higher selling prices, maintaining a gross profit margin of 17.4%, level with the previous year.

The group includes logistics subsidiary Haneishi Co., Ltd., and has been expanding its logistics infrastructure, including bringing the approximately 2,500-tsubo Tokai Distribution Center into operation in September 2024. The securities report notes that for chemical products (PVC pipes, fittings, etc.), "growing recognition of our logistics capabilities has driven sales above the previous year's level," indicating that logistics quality serves as a substantive differentiating factor in order acquisition.

Founded in 1948 and listed in 2006, the company has a history of establishing a nationwide, integrated operating structure through the 1998 absorption-type merger of 13 franchise (FC) companies. It has continued to expand its network, opening a Koriyama sales office in May 2025 and a Tama sales office in November of the same year. Sales to its key customer, Watanabe Pipe, totaled ¥6,160 million (16.5% of net sales), reflecting a stable business relationship.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) rose to ¥823 million (up 8.5% year on year), improving for the second consecutive period, confirming progress toward the medium-term plan target of ¥1,000 million. However, due to the recognition of an impairment loss of ¥134 million at the Kakogawa sales office, profit attributable to owners of parent fell sharply to ¥364 million (down 25.0% year on year). While the special loss appears to be a one-off event, it signals a decline in the profitability of fixed assets, and continued attention should be paid to the progress of the review of the site portfolio.

Amid a sharp rise in crude oil prices driven by escalating tensions in the Middle East, shipment restrictions and supply quota allocations by major suppliers of the company's core chemical products (petrochemical products such as PVC resin and polyethylene, which serve as primary raw materials) have become the norm. As a result, the earnings forecast for FY2027 (ending March 2027) has been left undetermined, described as "difficult to reasonably estimate." This comes against a backdrop of external factors including restrictions on material orders in the construction industry, construction delays, and weakening demand, making it currently difficult to assess the likelihood of achieving the targets for the final year of the medium-term plan (operating profit of ¥1,000 million and net sales of ¥44,000 million).

The balance of merchandise and finished goods at the end of FY2026 (ending March 2026) stood at ¥3,113 million, an increase of ¥906 million from the end of the previous period (¥2,207 million). This appears to reflect efforts to secure inventory early in response to supply constraints, but trade payables (notes and accounts payable plus electronically recorded obligations) also increased by ¥1,152 million to a total of ¥9,669 million from the end of the previous period (¥8,517 million), indicating continued balance sheet expansion. The equity ratio declined slightly to 30.4% from 30.7% in the previous period. Continued attention should be paid to the risk of inventory valuation losses should supply constraints become prolonged, as well as to deterioration in the cash conversion cycle.

Growth Strategy

As the final year of the medium-term management plan "Vision110," the company is advancing fulfillment of supply responsibilities, expansion of the integrated materials-and-construction order business, and talent development.

Clarify cash flow allocation across "strategic investments under the medium-term plan," "growth investments for the next generation," and "shareholder returns" to optimize allocation. In FY2026 (ending March 2026), the company secured operating cash flow of ¥1,043 million, paid dividends of ¥155 million (payout ratio of 42.7%), and repaid ¥428 million in borrowings.

Strengthen collaboration with manufacturing subsidiary Daidore Co., Ltd. to establish a sales base for high-value-added products such as drainage collector pipes. The profit margin of the Pipes and Equipment segment improved to 1.9% in FY2026 (ending March 2026) from 1.7% in the prior period, indicating that the collaboration effect is contributing to margin improvement.

Establish an integrated "materials-and-construction order system" that combines sales and construction, shifting the value provided from "goods" to "experiences." The company aims to build a competitive advantage in growth areas such as redevelopment and rebuilding demand. The construction-related segment continued to post losses even after revising order/contract accounting standards (a loss of ¥9 million in FY2026, ending March 2026), indicating that the system build-out remains in progress.

Aim to become the industry's No.1 in logistics through a differentiation strategy leveraging logistics as a core strength. The company is promoting logistics efficiency through restructuring of its distribution network. In the FY2026 (ending March 2026) results, it was confirmed that "rising evaluation of logistics capabilities" in the chemical products group directly translated into increased sales.

Through the renewal of the personnel evaluation system and the development of next-generation management talent, foster a corporate culture that autonomously thinks and embraces change. In FY2026 (ending March 2026), investment in human capital was promoted as a key priority. In FY2027 (ending March 2027) as well, "fostering a corporate culture that values autonomy and transformation" will continue as a key initiative.

Last updated: July 19, 2026