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CREATE CORPORATION

3024・Standard Market・Wholesale Trade

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クリエイト株式会社 logo
CREATE CORPORATION3024

Piping & Plumbing Equipment

Core business accounting for approximately 99% of group sales, handling wholesale distribution of piping and plumbing equipment

PeriodCurrentPreviousChange
Sales (external customers)¥36,933 million¥36,089 million↑
Segment profit (operating income)¥696 million¥627 million↑
Segment profit margin1.9%1.7%↑
Main customer (Watanabe Pipe Co., Ltd.) sales¥6,160 million¥5,958 million↑
Impairment loss (Piping & Plumbing Equipment segment)¥134 million¥0 million↓

Business Details

Primarily engaged in the procurement and sale of piping and plumbing equipment products such as pipes, fittings, and valves. The business is deployed across four product categories—Drainage & Sewage-related Products, Hot Water Supply & Water Supply-related Products, Chemical Products, and Others (Housing Equipment, etc.)—targeting housing, factories, buildings, hospitals, and schools. The company also serves as the exclusive sales agent for Toro-brand products manufactured by consolidated subsidiary Daidore Co., Ltd. The main customer is Watanabe Pipe Co., Ltd. (approximately 16.5% of sales for the current fiscal year).

Recent Overview

Chemical Products and Others drove sales and profit growth, while an impairment loss of ¥134 million was recorded for the Kakogawa sales office

In FY2026 (ending March 2026), the Piping & Plumbing Equipment segment achieved sales of ¥36,933 million (up 2.3% year on year) and segment profit of ¥696 million (up 11.0% year on year). Chemical Products (+5.1%) and Others (+7.8%) drove overall performance, while Drainage & Sewage-related Products (-1.7%) and Hot Water Supply & Water Supply-related Products (-3.1%) fell below the prior year due to the decline in new housing starts and a lull in adoption projects. An impairment loss of ¥134 million related to the Kakogawa sales office was recorded as an extraordinary loss within the Piping & Plumbing Equipment segment. Sales to the main customer, Watanabe Pipe Co., Ltd., increased to ¥6,160 million from ¥5,958 million in the prior fiscal year.

Key Products

product
Drainage & Sewage-related Products

Drainage cluster pipes and fire-resistant double-layer pipes are the main products. The segment struggled due to a decline in new construction starts of collective housing in the Greater Tokyo area, caused by soaring material prices and labor shortages leading to construction delays. While the external environment remains challenging, including a rebound decline following legal reforms, steady sales volume was maintained throughout the fiscal year through persistent efforts to secure sales channels. Sales for FY2026 (ending March 2026) were ¥7,140 million (down 1.7% year on year).

product
Hot Water Supply & Water Supply-related Products

Copper pipe products (including air-conditioning refrigerant piping) exceeded the prior year's results due to pre-price-revision demand and spot order intake. On the other hand, steel pipes and stainless steel materials fell below the prior year due to sluggish demand during a lull between adoption projects, resulting in the product group overall falling short of the prior year level. Sales for FY2026 (ending March 2026) were ¥8,731 million (down 3.1% year on year).

product
Chemical Products

Used for drainage, rainwater, and water/sewage piping in housing, factories, buildings, hospitals, schools, and civil engineering projects. Although affected by the decline in new housing starts, the company worked to expand sales in line with market needs; PVC drain box products saw a slight year-on-year increase, while PVC pipes and fittings exceeded the prior year as their logistics capabilities gained greater recognition. Sales for FY2026 (ending March 2026) were ¥11,533 million (up 5.1% year on year).

product
Others (Piping Materials, Housing Equipment, etc.)

Sales remained solid across all product groups throughout the fiscal year. In particular, precise inventory management aligned with demand trends for housing equipment centered on air conditioners proved successful and significantly drove sales. Combined with orders for ducts and flexible joints for public works and condominium construction, sales substantially exceeded the prior year. Sales for FY2026 (ending March 2026) were ¥9,527 million (up 7.8% year on year).

Growth Drivers

  • Expansion of sales channels for Chemical Products (PVC pipes, fittings, and drain boxes) driven by high evaluation of logistics capabilities
  • Driving sales through precise inventory management aligned with demand trends for housing equipment centered on air conditioners
  • Expansion of orders for ducts, flexible joints, etc. for public works and condominium construction
  • Expansion of rebuilding demand due to urban redevelopment and aging of condominiums and buildings
  • Mid- to long-term expansion of piping and plumbing equipment demand driven by the growth of environmentally conscious renovation (the existing stock market)
  • Establishment of a sales foundation for high-value-added products through collaboration with manufacturing subsidiary Daidore Co., Ltd.
  • Promotion of a differentiation strategy through logistics efficiency improvements via reorganization of the delivery network

Risks

  • Sluggish demand for Drainage & Sewage-related and Hot Water Supply & Water Supply-related Products due to the continued decline in housing starts
  • Rising procurement costs and supply restrictions for petrochemical products such as PVC resin and polyethylene due to a sharp rise in crude oil prices amid tensions in the Middle East
  • Risk of difficulty securing full order volumes due to the normalization of shipment restrictions and supply allocation quotas by major suppliers
  • Slowdown in sales momentum due to a rebound decline following a rush of construction starts ahead of legal reforms such as amendments to the Building Standards Act
  • Risk of sluggish demand during lulls between adoption projects for steel pipes, stainless steel materials, etc.
  • Customer concentration risk due to sales concentration with Watanabe Pipe Co., Ltd. (approximately 16.5% of current fiscal year sales)
  • Continued decline in the number of collective housing starts due to worsening labor shortages and construction delays stemming from the construction industry's '2024 Problem'

Last updated: June 18, 2026