OCHI HOLDINGS CO.,LTD.
3166・Standard Market・Wholesale Trade
Business
OCHI Holdings is a holding-company group comprising 30 consolidated subsidiaries. In its core Building Materials Business (approximately 59% of group sales), the company wholesales housing-related materials purchased from domestic building materials manufacturers and trading companies to housebuilders, local construction firms, general contractors, and others. In addition, it operates the Environmental Amenity Business handling air conditioning and heating equipment, the Processing Business engaged in processing and assembly of wooden housing structural frames, the Engineering Business covering commercial facility construction, civil engineering works, and the Nursing Care Business, as well as Others, which includes industrial materials sales, worker dispatching, and software development. Its main customers are building materials/lumber retailers, housebuilders, general contractors, and local construction firms, and the company is expanding its sales network nationwide from its base in Kyushu.
Business Model
Building materials business generates a stable revenue base (net sales of ¥120,432 million) through bulk purchasing and a wide-area sales network, serving as the earnings foundation, while combining value-added businesses such as processing and engineering to improve profitability. M&A is the core of the growth strategy, and the company has continuously expanded its business scope and geographic coverage through the acquisition of subsidiaries such as Yumita Construction, Hit, Yell, and Nippon System Solutions. Funding relies on operating cash flow and borrowings from financial institutions, maintaining a sound financial structure with interest-bearing debt of ¥6,116 million against cash and cash equivalents of ¥16,561 million.
Company Strengths
Built on the foundation of Ochi Sangyo, founded in 1955, the company has established a wide-area wholesale network with business locations spanning from Hokkaido to Kyushu and Okinawa. In June 2025, it opened a new Kumamoto Center and consolidated two sales offices within Kumamoto City, continuing to pursue efficiency improvements in both logistics and sales operations. External customer sales in the building materials business reached ¥70,007 million, accounting for approximately 58% of group sales and forming a stable earnings base.
Since establishing the holding company in 2010, the group has continued to pursue M&A, including Yumita Construction (October 2024), Hit-Yeal (May 2024), and Nippon System Solutions (July 2025). The engineering business achieved net sales of ¥14,190 million, up 48.7% year on year, and operating profit of ¥1,152 million, up 159.4% year on year, demonstrating that business diversification through M&A is contributing concretely to performance.
As of the end of FY2026 (ending March 2026), the company held cash and cash equivalents of ¥16,561 million, while interest-bearing debt remained limited at ¥6,116 million. The equity ratio stood at 35.6% (up 2.0 percentage points year on year), and operating cash flow was ¥4,542 million (a significant improvement from ¥1,878 million in the previous period), reflecting a balance between capacity for M&A investment and financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue was ¥120,432 million (up 2.9% year on year), marking the first revenue increase in three periods. Operating profit rose to ¥1,669 million (up 13.5%), ordinary profit to ¥2,242 million (up 16.2%), and profit attributable to owners of parent to ¥1,309 million (up 25.9%), with improvement across all profit line items. The main driver was the M&A effect in the Engineering business (full-period contribution from Yumita Construction Co., Ltd.). On the other hand, in the external environment, new housing starts fell sharply by 12.9% year on year, and the Building Materials & Processing business saw both revenue and profit decline. Operating cash flow improved substantially to ¥4,542 million, aided by progress in collecting trade receivables (a decrease of ¥2,985 million). Looking at the past five periods, operating profit has been on a declining trend since peaking at ¥3,064 million in FY2022 (ended March 2022), and while the ¥1,669 million recorded in FY2026 (ending March 2026) suggests a bottoming out, it remains at just 54% of the peak level.
Growth Strategy
Under the banner of "Construction Engineering Trading Company," the company is shifting toward the non-residential and construction work fields through M&A-driven growth.
Core to the "Construction Engineering Trading Company" strategy. The consolidation of Yumita Construction Co., Ltd. as a subsidiary in October 2024 contributed significantly in FY2026 (ending March 2026) (segment sales up 48.7% YoY, operating profit up 159.4%). The company plans to pursue further M&A going forward to expand scale and build regional networks in the construction, civil engineering, and interior fitting-out fields.
To mitigate the impact of declining new housing starts, each business is strengthening its construction work capabilities and pursuing renovation demand and the non-residential market (commercial facilities, nursing care facilities, nurseries, etc.). In FY2026 (ending March 2026), the Processing business achieved 6.3% sales growth, but the Building Materials and Environmental Amenities business saw a sales decline, making acceleration of these initiatives a challenge.
In July 2025, the company made Nihon System Solution Co., Ltd., which develops CAD systems for the construction and civil engineering industries, a wholly owned subsidiary at an acquisition cost of ¥300 million. In FY2026 (ending March 2026), only the half-year period from October 2025 contributed to consolidated results. Through collaboration with existing business divisions within the group and development of specialized personnel, the company aims to promote DX and achieve sustainable growth. Full-year contribution is expected in the next fiscal year.
In June 2025, Ochi Sangyo Co., Ltd. newly established the Kumamoto Center, consolidating two sales offices in Kumamoto City. This initiative aims to improve efficiency in both sales and logistics; in the current fiscal year, costs related to the new establishment pressured profits in the Building Materials business, but medium- to long-term earnings contribution is expected.
Last updated: July 19, 2026