Kawasaki & Co.,Ltd.
3045・Standard Market・Wholesale Trade
Business
Kawasaki Co., Ltd. was founded in 1971 and is headquartered in the Senshu region of Osaka Prefecture; it is listed on the TSE Standard Market. The company operates three segments: an apparel business that plans and outsources production of fashion accessories for senior women under the 'Lake Alster' brand and sells them through wholesale and direct sales; a leasing and warehousing business centered on the Senshu region of Osaka that operates logistics warehouse leasing, commercial warehousing, and solar power generation; and a hotel business that directly operates Hotel Lake Alster Alza Izumiotsu in front of Izumiotsu Station on the Nankai Main Line. Net sales for FY2025 (ending August 2025) were ¥2,291 million. The leasing and warehousing business is the core source of earnings, while both the apparel and hotel businesses are in the process of improvement.
Business Model
The leasing/warehouse business maintains a high occupancy rate amid logistics demand in the Senshu area of Osaka, and its stock-type revenue model—generating net sales of ¥1,402 million and operating profit of ¥589 million (operating margin of approximately 42%) in FY2025 (ending August 2025)—accounts for the majority of the company's overall profit. The apparel business wholesales and directly sells outsourced products, while the hotel business provides lodging and food and beverage services, but both businesses are currently operating at an operating loss. As a financial policy, working capital is funded principally through internal funds, with financial institution borrowing utilized only for large-scale capital expenditures.
Company Strengths
In FY2025 (ending August 2025), the Leasing & Warehousing Business achieved net sales of ¥1,402 million against operating income of ¥589 million, an operating margin of approximately 42%. The company has maintained a high occupancy rate against a backdrop of logistics demand in the Osaka Senshu region, continuing to expand facilities with the successive completion of "Kawasaki Techno Plaza" in March 2023 and "Kawasaki Kaizuka Techno Plaza" in January 2024.
At the end of FY2025 (ending August 2025), net assets stood at ¥5,755 million, with an equity ratio of 73.7% (improved from 71.4% in the prior period). The company repaid ¥284 million in long-term borrowings while securing operating cash flow of ¥604 million. It holds cash and deposits of ¥659 million, indicating a high level of financial stability.
The "Lake Alster" brand, launched in 1980, has a history of over 40 years and has established itself in the apparel and accessories market for senior women. In FY2025 (ending August 2025), through the launch of new products, increased sales to mail-order companies, and the establishment of its Proprietary E-Commerce Site, the brand achieved net sales of ¥538 million (up 2.5% year on year), while the operating loss improved from ¥37 million in the prior period to ¥19 million.
ENVALITH's Perspective
Performance Trend
Cumulative sales for the first three quarters (nine months) of FY2026 (ending August 2026) totaled ¥1,752 million (+1.1% year on year), with operating profit of ¥408 million (-0.1%) and quarterly net profit of ¥266 million (+0.2%), essentially flat. Looking at the financial trend over the past five fiscal periods, both sales and operating profit continued on an improving trend from FY2021 through FY2025, but the full-year forecast for FY2026 (ending August 2026) calls for sales of ¥2,233 million and operating profit of ¥432 million, marking a shift to lower sales and lower profit compared with the previous period. As an external factor, rising personnel costs from minimum wage increases along with higher raw material and food ingredient prices are squeezing the cost structure. The leasing and warehousing business is expected to receive support from the start of operations at the new Kishiwada City yard site, but increased costs in both the apparel and hotel businesses are weighing on overall company earnings.
Growth Strategy
Advancing equipment modernization and new site launch in the Leasing & Warehousing Business, while promoting Apparel E-Commerce and post-Expo improvement in Hotel Business profitability
Strengthening the competitiveness of existing properties through value-enhancing facility upgrades such as LED lighting conversion. The Kishiwada City Mokuzai-cho yard site in Osaka Prefecture is currently undergoing land preparation, with operations expected to commence within the current fiscal year. Costs such as land lease fees are being incurred in advance, but once operational, the site will become a new revenue source for the Leasing & Warehousing Business.
Leveraging the increase in registered members through the shareholder benefit program, sales via the Proprietary E-Commerce Site expanded rapidly, up 244.7% year on year. The company aims to improve profit margins by reducing dependence on wholesale and increasing the direct sales ratio. Price revisions are also being implemented in parallel as a response to minimum wage increases and rising raw material prices.
Price revisions were implemented in response to rising labor costs and food ingredient prices in the Food & Beverage Services (Banquets & Restaurants) segment, but price pass-through was kept limited to curb customer attrition, resulting in an operating loss of ¥39 million for the cumulative third quarter, an expansion compared to the same period of the previous year. The company has stated its policy of continuing thorough cost management and operational efficiency improvements going forward, but a specific timeline for achieving profitability has not been disclosed.
Last updated: July 17, 2026