Shinwa Co., Ltd.

Business Details

The Shinwa Corporation Group operates a single segment comprising the Temporary Materials division, centered on wedge-coupling scaffolding and next-generation scaffolding, and the Logistics Equipment division, which provides custom-made pallets and other products. Main customers include rental companies, scaffolding erection/dismantling contractors, trading companies, and agents. Under the concept of "from manufacturing to installation," the company has built an integrated provision system extending into installation and aluminum processing through the consolidation of the Yagumi Group, Kaizu Construction, and Ohgane Metal Industry as subsidiaries. In FY2026 (ending March 2026), both revenue and profit at each stage reached record highs since listing.

Recent Overview

In FY2026 (ending March 2026), both revenue and profit at each stage reached record highs since listing, with aggressive M&A activity

For the full year of FY2026 (ending March 2026), revenue was ¥20,138 million (up 15.1% year on year) and operating profit was ¥2,488 million (up 53.4% year on year), both record highs since listing. Following the consolidation of Ohgane Metal Industry (acquired May 2025) and Kaizu Construction (acquired October of the same year) as subsidiaries, the company recorded a gain on bargain purchase (negative goodwill) of ¥466 million, while also recording a loss of ¥250 million related to a fund outflow incident at a subsidiary. For FY2027 (ending March 2027), the company forecasts revenue of ¥22,000 million (up 9.2% year on year) and operating profit of ¥2,520 million (up 1.3% year on year), and plans an annual dividend of ¥36 (an increase of ¥2).

Key Products

Growth Drivers

• Continued substantial growth in large-scale logistics warehouse projects within the Logistics Equipment division (up 26.9% year on year in FY2026 (ending March 2026), a record high)
• Revenue contribution and utilization of human resource strength from the Yagumi Group (consolidated as a subsidiary in April 2024) and Kaizu Construction (consolidated as a subsidiary in October 2025) in temporary construction services
• Enhanced product capability and competitive advantage in logistics equipment through the use of Ohgane Metal Industry's (consolidated as a subsidiary in May 2025) aluminum processing technology
• Strengthened flexible proposals for both rental and sales, capturing the shift from "ownership" to "usage" in wedge-coupling scaffolding
• Steady trend in construction investment supported by urban redevelopment and infrastructure renewal demand
• Maximizing shared management resources and group synergies across manufacturing, sales, and installation
• Expansion into infrastructure-related fields such as bridges (suspended scaffolding "Rapid Floor," etc.), promoting the spread of higher value-added products and services

Risks

• Continued weakness in new housing starts (persistently high construction material prices, labor shortages, concerns over rising interest rates)
• Upward pressure on manufacturing costs due to persistently high raw material prices
• A fund outflow incident at a subsidiary (disclosed December 2025, with a loss of ¥250 million recorded) and ongoing governance risk
• Impairment risk related to goodwill balance of ¥12,284 million and intangible assets with indefinite useful lives (¥1,405 million)
• Interest rate rise risk and financial leverage due to the high level of interest-bearing debt (total current and non-current borrowings of ¥10,675 million)
• Profit attributable to owners of parent expected to decrease 6.9% year on year in FY2027 (ending March 2027) due to the reversal effect of the one-time gain on bargain purchase (negative goodwill) of ¥466 million
• Uncertainty in the business environment due to concerns over a slowdown in overseas economies and heightened geopolitical risk