sanwacompany ltd.
3187・Growth Market・Retail Trade
Housing Equipment & Building Materials EC Business
Core business selling housing equipment and building materials via EC at one price
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (H1 FY2026 (ending March 2026 basis... wait fiscal year ending September 2026), non-consolidated) | ¥7,886 million | – (not comparable to prior year period) | ↑ |
| Operating income (H1 FY2026, non-consolidated) | ¥269 million | – (not comparable to prior year period) | ↑ |
| Ordinary income (H1 FY2026, non-consolidated) | ¥249 million | – (not comparable to prior year period) | ↑ |
| Net income for the interim period (H1 FY2026, non-consolidated) | ¥211 million | – (not comparable to prior year period) | ↑ |
| Gross profit (H1 FY2026) | ¥2,941 million | – | — |
| Gross profit margin (H1 FY2026) | 37.3% | Below the level of the same period of the prior year | ↓ |
| Full-year net sales forecast (FY2026) | ¥17,035 million | ¥15,121 million (FY2025 actual) | ↑ |
| Full-year operating income forecast (FY2026) | ¥352 million | ¥607 million (FY2025 actual) | ↓ |
| Net income per share for the interim period (H1 FY2026) | ¥11.71 | – | ↑ |
| Total assets (end of H1 FY2026) | ¥9,212 million | ¥8,790 million (end of FY2025) | ↑ |
| Equity ratio (end of H1 FY2026) | 31.0% | 30.9% (end of FY2025) | — |
| Operating cash flow (H1 FY2026) | ¥608 million | – | ↑ |
Business Details
Sells housing equipment and building materials via EC to both construction professionals (design firms, general contractors, local builders, etc.) and general consumers under the same terms and same price (one price), regardless of customer type. Approximately 80% of sales consist of original products (in-house developed products and domestically exclusive imported products). The company operates six showrooms and two Smart Showrooms® domestically, providing face-to-face proposal functions that complement the weaknesses of EC. Overseas expansion is also progressing, with a showroom opened in Metro Manila, Philippines, accelerating global expansion. Following the sale of all shares in the consolidated subsidiary Best Bright effective September 29, 2025, this segment is now the sole reporting segment.
Recent Overview
First interim period after transition to non-consolidated reporting; increased sales and profit achieved through restrained advertising investment resulting in operating profit
Following the sale of all shares in the consolidated subsidiary Best Bright effective September 29, 2025, the company transitioned to non-consolidated accounting from the first quarter. In H1 FY2026 (October 2025 to March 2026), the company recorded net sales of ¥7,886 million, operating income of ¥269 million, and net income for the interim period of ¥211 million. In the same period of the prior year, the company had recorded an operating loss due to large-scale advertising investment aimed at improving corporate name recognition; in this interim period, the company revised its measures to emphasize a balance between investment and profitability, resulting in secured profit. Gross profit margin fell below the level of the same period of the prior year due to changes in the product mix and other factors. The company is expanding system investments, including the introduction of an in-house AI system aimed at improving operational efficiency, with costs currently preceding benefits at this stage. Asset retirement obligations increased by ¥201 million due to a change in the estimate of showroom restoration costs. There is no change to the full-year earnings forecast (net sales of ¥17,035 million, operating income of ¥352 million).
Key Products
Growth Drivers
- Increased revenue effect from higher purchase amounts per existing customer and increased order frequency
- Market development through expanded product adoption in non-residential areas (accommodation facilities, etc.)
- Building an overseas revenue base through overseas showroom expansion, including in the Philippines
- Increased customer referrals to the Housing Equipment & Building Materials EC Business through strengthened collaboration with ASOLIE and SUVACO
- Operational efficiency and productivity improvements (medium- to long-term) through system investments, including the introduction of an in-house AI system
- Establishment of a profit-securing framework through business operations that emphasize a balance between investment and profitability
Risks
- Market contraction due to persistently high building material prices and labor costs and a declining trend in new housing starts
- Continued decline in demand as a rebound effect from front-loaded demand ahead of the mandatory energy efficiency standards compliance implemented in April 2025
- Risk to procurement of materials such as insulation, paint, and housing equipment due to supply uncertainty for petrochemical products stemming from worsening conditions in the Middle East
- Uncertainty over the economic outlook due to uncertainty surrounding US trade policy and renewed increases in crude oil and raw material prices
- Decline in gross profit margin (year-on-year deterioration due to changes in product mix, etc.)
- Short-term pressure on earnings due to upfront system investment costs, including for the in-house AI system
- Weak demand in the owner-occupied housing market against a backdrop of rising mortgage interest rates and housing prices
- Risks related to regulations in various countries, foreign exchange fluctuations, and local partners in overseas expansion
- Risk of slowing sales growth due to somewhat weak growth in customer numbers
Last updated: December 24, 2025