OCHI HOLDINGS CO.,LTD.
3166・Standard Market・Wholesale Trade
Building Materials Business
Core wholesale business for housing-related materials, accounting for approximately 59% of Group sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers + internal, segment total) | ¥70,806 million | ¥72,934 million | ↓ |
| Sales to external customers | ¥70,007 million | ¥72,506 million | ↓ |
| Operating profit (segment profit) | ¥546 million | ¥835 million | ↓ |
| Segment assets | ¥32,222 million | ¥33,477 million | ↓ |
| Depreciation | ¥247 million | ¥263 million | ↓ |
| Increase in tangible/intangible fixed assets | ¥795 million | ¥830 million | ↓ |
| Impairment loss | ¥116 million | ¥103 million | ↑ |
Business Details
A wholesale business that procures housing-related materials from domestic building materials manufacturers, distributors, and trading companies, and sells them to building materials and lumber retailers, homebuilders, general contractors, construction companies, and home centers. This is the core segment accounting for the majority of the Group's performance, primarily driven by revenue from product sales. The company is pursuing growth strategies including development of the non-residential field, capturing reform/renovation demand, expanding sales of decarbonization-related products, and strengthening construction capabilities. In June 2025, Ochi Sangyo Co., Ltd. newly established the Kumamoto Center, consolidating two sales offices in Kumamoto City.
Recent Overview
Sales and profit both declined significantly due to the combination of decreased housing starts and costs related to establishing the Kumamoto Center.
In FY2026 (ending March 2026), sales in the Building Materials Business were ¥70,806 million (down 2.9% year-on-year), and operating profit was ¥546 million (down 34.5% year-on-year). The main cause was a 10.2% year-on-year decrease in the number of housing starts for owner-occupied and for-sale detached houses. In addition, related costs arose from Ochi Sangyo Co., Ltd.'s establishment of the Kumamoto Center in June 2025, which consolidated two sales offices in Kumamoto City, putting pressure on profit. An impairment loss of ¥116 million (prior period: ¥103 million) was also recorded. Efforts were made to offset this through sales growth in the non-residential field and capturing reform/renovation demand, but these were not sufficient to fully compensate for the shrinking of the core market.
Key Products
Growth Drivers
- Diversification of sales through strengthened sales activities in the non-residential field (general contractors, commercial facilities, etc.)
- Addressing the existing housing stock market by capturing reform/renovation demand
- Acquiring new demand through expanded sales of decarbonization-related products
- Providing added value and differentiation through strengthened construction capabilities
- Efficiency improvements in both sales and logistics through the newly established Kumamoto Center (medium- to long-term profit contribution)
Risks
- Contraction of the core market due to declining housing starts for owner-occupied and for-sale detached houses (down 10.2% year-on-year in FY2026, ending March 2026)
- Risk of fluctuations in housing starts associated with the April 2025 revision to the Building Standards Act (new housing starts down 12.9% year-on-year to 711 thousand units)
- Demand suppression due to persistently high housing construction prices and rising mortgage interest rates
- Pressure on profit margins from rising costs such as increased sales freight expenses
- Short-term downward pressure on profit due to startup costs for newly established facilities (such as the Kumamoto Center)
- Risk of impairment losses in the Building Materials Business (an impairment loss of ¥116 million was recorded in FY2026, ending March 2026)
- Risk of soaring crude oil and materials prices due to escalating tensions in the Middle East
Last updated: June 22, 2026