Daitobo Co., Ltd.
3202・Standard Market・Textiles & Apparels
Business
Daitobo Co., Ltd. traces its origins to a textile manufacturer founded in 1896 and now operates three business segments: Commercial Facilities, Healthcare, and Textiles. Its core business is the real estate leasing and operation management of the large-scale commercial facility "Sun Tomoe Kakitagawa" (Suntomoon Kakitagawa), located in Sunto District, Shizuoka Prefecture, which accounts for approximately 57% of consolidated net sales and the majority of operating income. In the Healthcare segment, the company sells bedding products manufactured by its subsidiary Niigata Daito Boseki Co., Ltd., while the Textiles segment handles clothing, uniforms, and textile materials. Its customer base is diverse, including tenant companies at commercial facilities, local consumers, government agencies, and apparel manufacturers. The company is listed on the TSE Standard Market and the Nagoya Stock Exchange Premier Market.
Business Model
The core of revenue is the tenant rental income from "Sun Moon Kakitagawa" (Santo Moon Kakitagawa), which underpins a highly profitable structure with an operating margin of 41.4%. The subsidiary Daito Boseki Estate Co., Ltd. handles facility operation and management, generating stable cash flow. The healthcare business employs an integrated manufacturing-and-sales model in which a manufacturing subsidiary produces goods that the company sells, while the textile business adopts an asset-light sales model utilizing outsourced processing partners. The stable earnings from the commercial facility offset the losses and low profitability of the other two businesses.
Company Strengths
"Sun Moon Kakitagawa" has continued to invest since its opening in 1997, including the addition of a new building, "Sun Moon Oasis" (three stories, approximately 7,000 square meters), in 2020. In FY2026 (ending March 2026), the commercial facilities business maintained a high operating margin of 41.4% (net sales of ¥2,305 million, operating profit of ¥955 million), supporting the group's overall earnings.
Even amid the severe operating environment including the COVID-19 pandemic, the company has secured nine consecutive fiscal years of profitability at the operating profit, ordinary profit, and net income levels, on both a consolidated and non-consolidated basis. In June 2023, it resumed dividend payments for the first time in 22 years, and during the medium-term management plan period, it has set targets of a 50-80% dividend payout ratio and a 70-100% total shareholder return ratio.
Since its founding in 1896, the company has a track record of producing uniforms for government agencies such as the police and fire departments, as well as uniforms related to the 1964 Tokyo Olympics. Currently, in the textile division of the textile business, demand for government-related uniforms remains steady, and the long-standing relationships of trust and delivery track record function as a barrier to entry.
ENVALITH's Perspective
Performance Trend
FY2026 (ending March 2026) resulted in revenue of ¥4,012 million (down 2.3% year on year) and operating profit of ¥310 million (down 1.6% year on year), representing a decline in both revenue and profit. The Healthcare business (revenue down 8.6% year on year, operating loss of ¥29 million) and the Textile business (revenue down 10.9% year on year, operating profit down 40.1% year on year) weighed on results, while the Commercial Facilities business achieved higher revenue and profit, aided by the success of a hit Japanese film, among other factors. Profit attributable to owners of parent increased sharply to ¥90 million (up 65.2% year on year), driven by an improvement in income tax adjustment (from an expense of ¥66 million in the prior period to income of ¥5 million in the current period). Operating cash flow improved to ¥725 million (up 50.9% year on year). Operating profit over the past five fiscal years has moved in a range of 214 → 319 → 315 → 310 million yen, remaining roughly flat, and the underlying structure in which the Commercial Facilities business provides stable earnings support remains unchanged. For FY2027 (ending March 2027), the company forecasts revenue of ¥4,700 million and operating profit of ¥400 million, although this includes one-off factors such as the sale of long-term held shares.
Growth Strategy
Toward the final year of the medium-term management plan, the company is advancing strengthening of commercial facilities, recovery of the healthcare business, and focus on the textile business.
Sequential equipment renewal investment at "Sun Tomoon Kakitagawa" to maintain and enhance facility competitiveness. In FY2026 (ended March 2026), capital expenditure of ¥126 million was made, and despite increased depreciation expenses (¥492 million), operating profit of ¥955 million (up 6.4% year on year) was achieved. In FY2027, continued equipment renewal investment is expected to increase depreciation burden, but revenue growth is projected against a backdrop of solid market conditions.
While efficiency improvements in the manufacturing division are beginning to show effects, an operating loss of ¥29 million was recorded in FY2026 (ended March 2026), worsening from the prior period (loss of ¥13 million), due to rising material procurement costs, procurement delays, and the impact of the intense summer heat. In FY2027, revenue growth is expected on hopes of a recovery in the health business segment. Long-term inventory valuation losses of ¥11 million and goodwill amortization of ¥14 million continue to be recorded, and fundamental profitability improvement remains a challenge.
Revenue growth is projected for FY2027, mainly due to expectations that the government-demand uniform business, which supports part of the defense industry, will continue to perform solidly. In FY2026 (ended March 2026), operating profit fell sharply to ¥21 million (down 40.1% year on year) due to lost orders in the apparel business, sluggish demand for civilian-use uniforms, and increased labor costs from staff reinforcement. Reducing dependence on existing clients through the acquisition of new orders remains a challenge.
The company plans to sell long-term held shares during FY2027, which is expected to contribute to achieving ordinary profit of ¥190 million (up 63.8% year on year). As of the end of FY2026 (ended March 2026), investment securities held amounted to ¥594 million (up ¥151 million year on year). While the gain on sale of shares is a one-time item, it is expected to be utilized for reducing interest-bearing debt and improving the financial structure.
Last updated: July 19, 2026