ENVALITH
株式会社中京医薬品 logo

CHUKYOIYAKUHIN CO.,LTD.

4558・Standard Market・Pharmaceuticals

Official website
株式会社中京医薬品 logo
CHUKYOIYAKUHIN CO.,LTD.4558

Business

Chukyo Iyakuhin Co., Ltd. was founded in 1978 and is headquartered in Handa City, Aichi Prefecture, and is listed on the Tokyo Stock Exchange Standard Market. The company operates three business segments: the "Health Care Business" (59.3% of net sales), in which sales staff directly place and sell Stocked Home Medicine (Haichi-yaku), Health Foods, Drinks, Medical Products, and daily sundries to households; the "Life Care Business" (29.1%), which handles wholesale sales to competitors and the general distribution market; and the "Aqua Magic Business" (11.5%), which delivers mineral water. Nearly all products are produced under outsourced manufacturing as in-house brands, and the company maintains numerous sales offices nationwide. Net sales for FY2026 (ending March 2026) were ¥6,569 million.

Business Model

Nearly all products are developed as PB (Private Brand) products manufactured by external contractors based on the company's own specifications, and sales staff make regular visits to households to place and sell them at retail. The "Oki-gusuru" (stocked medicine placed for use-first, pay-later) system builds ongoing relationships with customers, securing stable revenue. The Wholesale Division expands sales channels through other companies' Store PB (Private Brand) Products and the EC Business (Internet Mail Order Sales). In the Water Sales Division, stock-type revenue is accumulated through regular home delivery of water server refills.

Company Strengths

The company operates numerous sales offices nationwide, from Hokkaido to Kagoshima, and newly opened four sales offices in Fujieda, Numazu, Ito, and Hamamatsu-Nishi in FY2026 (ending March 2026). Through the purchase of customer goodwill (goodwill), the company has increased new customers by approximately 20,000 households, and continues its scheme of allocating funds raised through the issuance of stock acquisition rights to growth strategy investments.

In March 2026, the company obtained certification as an "Excellent Health Management Corporation 2026 (Large Enterprise Category)" for the 7th consecutive year. It has also been certified as a "Sports Yell Company 2026" by the Japan Sports Agency for 6 consecutive years. The company continues to accumulate a track record of ongoing investment in personnel retention and development, including the new personnel system introduced in April 2024, a scholarship repayment support program, hierarchical training programs, and strengthened promoter systems.

Through a PB model in which nearly all products are outsourced for production based on the company's own specifications, the company secured a gross profit margin of 56.6% in FY2026 (ending March 2026). Even amid rising procurement and raw material costs, the company implemented price revisions to maintain profit margins. In the Water Sales Division, state-of-the-art equipment was introduced at the Handa Water Plant, with the new plant operational from March 2026, aiming to improve quality and reduce costs.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales were ¥6,569 million (up 4.2% year on year), operating profit was ¥127 million (up 20.2%), and net income was ¥83 million (up 85.2%), with all profit items improving. While the recording of a deferred tax adjustment of ¥14 million had some positive effect on net income, the recovery on an operating profit basis was substantive. However, the operating profit margin remained at only 1.9%, and the company has not yet escaped its thin-margin structure. Total selling, general and administrative expenses of ¥3,588 million accounted for 54.6% of net sales, and the structure of heavy fixed cost burdens such as personnel expenses and rent remains unchanged.

The Water Sales Division posted solid net sales of ¥761 million (up 5.4% year on year), but segment profit declined to ¥76 million (down 8.2% year on year). This appears to reflect increased costs associated with the introduction of new plant facilities, which squeezed profit. The Wholesale Division recorded a segment loss of ¥22 million (widening from a loss of ¥7 million in the previous period), leaving structural earnings challenges unresolved. Segment profit at the Retail Division of ¥74 million (a significant improvement from ¥31 million in the previous period) is driving overall company results, but resolving the loss at the Wholesale Division is key to improving earnings company-wide.

The earnings forecast for FY2027 (ending March 2027) projects net sales of ¥6,150 million (down 6.4% year on year), a decline, while operating profit is expected to reach ¥133 million (up 4.4%), ordinary profit ¥145 million (up 3.8%), and net income ¥85 million (up 2.3%), all increases. The company is factoring in the impact of increased holiday days on its labor-intensive business into its sales outlook, while aiming to improve profit margins through price optimization and enhanced cost management. The dividend will be maintained at ¥5 per share annually (with a projected payout ratio of 62.4%), continuing the company's stance toward shareholder returns.

Growth Strategy

A three-pillar 'Total Life Care' strategy centered on retail division productivity reform, wholesale/EC business expansion, and water sales business customer expansion

Promoting transformation of the sales style through organizational culture reform and introduction of process management, increasing the number of visits and sales utilization rate, strengthening consignment sales, and creating new customers by opening agile satellite offices. In FY2026 (ending March 2026), the Retail Division's segment profit reached ¥74 million (a significant improvement from ¥31 million in the prior period), with results beginning to show.

Aiming to increase customer acquisition and sales through development of PB products for sundries and food items, strengthening OEM planning and sales, and accelerating the introduction of new products into the EC business. Net sales of the Wholesale Division in FY2026 (ending March 2026) expanded to ¥1,909 million (+9.1% year on year), but segment loss widened to ¥(22) million, making profitability an urgent priority.

Promoting new customer development through strategic use of push-type and pull-type sales approaches, expanding the OEM Contract Manufacturing, Agent & Distributor Network, expanding OEM contract manufacturing, and developing new water server models and new products. Operations at the new plant began in March 2026, with quality improvement and production efficiency gains currently underway. Rising demand for disaster prevention and stockpiling is providing a tailwind in the market environment.

Promoting refinement of the new personnel system introduced in April 2024 (scholarship repayment support, performance-linked treatment), systematizing tiered training and 1-on-1 meetings, and strengthening recruitment through organizational collaboration. Also addressing health management, promotion of women's advancement, and adaptation to AI/DX as ongoing challenges. Certification as an Excellent Health Management Corporation for seven consecutive years supports the company's recruitment brand strength.

Last updated: July 19, 2026