ASAHIPEN CORPORATION
4623・Standard Market・Chemicals
Business
Asahipen Corporation is a paint manufacturer founded in Osaka in 1940, listed on the Standard Market of the Tokyo Stock Exchange. The group comprises 12 companies and operates across five segments: the Paint Business (manufacture and sale of household and industrial paints, and painting construction services), the DIY Products Business (interior, housecare, and gardening supplies), the Pet Supplies Business (pet food and pet supplies), the Clock & Watch Products Business (newly added following the consolidation of the Hodogaya Denshi Hanbai group as a subsidiary in January 2026), and Others (logistics services and real estate leasing). Its main customers are home center retailers, and it has built its business foundation as a comprehensive manufacturer related to daily living, centered on DIY demand from general consumers.
Business Model
The Paint and DIY Products businesses combine in-house production at the company's own factories (Osaka, Hyogo, Shizuoka) with outsourced procurement, forming a vertically integrated profit structure in which the group's logistics subsidiary, Asahi Logist Co., Ltd., handles distribution. The Pet Supplies and Clock & Watch Products businesses are specialized in outsourced procurement and sales. The company also expands downstream through Painting Construction Services (Asahi Pen Homing Service Co., Ltd.), building up earnings across multiple segments while leveraging synergies within the group.
Company Strengths
Since its founding in 1940, the company has a track record of pioneering product development in the industry, such as the conversion of household paints to water-based formulations (1973) and CFC-free water-based aerosols (1990). It has promoted in-house production at its Hyogo and Shizuoka plants, and in the DIY Products Business for FY2026 (ending March 2026), cost efficiencies from in-house production led to a 13.6% year-on-year increase in segment profit.
Asahi Logist Co., Ltd. handles logistics on a consolidated basis for the paint, DIY, and pet supplies companies, steadily capturing demand from within the group. The segment profit margin for the Others segment remained at a high level of 44.8% (38.6% in the previous period), with logistics and real estate leasing serving as a stable supplementary source of earnings.
The company acquired The Pet Co., Ltd. in April 2022 to launch its Pet Supplies Business, established Sun Papelle Co., Ltd. in June 2023, and in January 2026 acquired four companies of the Hodogaya Denshi Hanbai group, newly adding the Clock & Watch Products Business. The company has continuously executed M&A as a growth vehicle, including gaining visibility on achieving the ¥20.0 billion sales target set forth in its medium-term management plan "SPEC2".
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) were ¥16,823 million (down 1.9% year on year), with operating profit of ¥628 million (down 27.4%), marking a reversal into decline after two consecutive periods of profit growth. The main causes were a sharp decline in the Pet Supplies Business (down 22.8% year on year) as well as rising raw material costs and increased SG&A expenses. On the other hand, extraordinary income (gain on sale of fixed assets of ¥102 million and gain on sale of investment securities of ¥174 million) together with tax effects secured a slight increase in net income attributable to owners of parent to ¥727 million (up 3.7%). For FY2027 (ending March 2027), full-year consolidation of the Clock & Watch Products Business is expected to drive net sales of ¥21,500 million (up 27.8%) and operating profit of ¥1,000 million (up 59.2%). External factors, including downside economic risks stemming from U.S. trade policy and the situation in the Middle East, along with continued price increases, are heightening uncertainty in the business environment.
Growth Strategy
Toward the target of ¥25.0 billion in group sales for FY2031 (ending March 2031), the company is pursuing M&A, new business development, and sales channel expansion
In January 2026, the company made Hodogaya Denshi Hanbai Co., Ltd. and three companies in its group subsidiaries, adding clock and watch products, repairs, and services as a new revenue pillar. Full-year consolidation in FY2027 (ending March 2027) is expected to make a substantial contribution to sales. A key challenge is achieving earnings contribution after absorbing acquisition-related costs.
In the Paint Business, segment profit fell 31.0% year on year to ¥319 million due to soaring raw material prices. The company continues cost management through operational efficiency improvements, promotion of in-house production, and procurement of alternative raw materials. In the DIY Products Business, profit margins have improved through efficiency gains (segment profit up 13.6% year on year), and this approach will also be extended to the Paint Business.
The company is advancing logistics infrastructure development utilizing the new warehouse site acquired in the previous fiscal year, aiming to strengthen the competitiveness of the Pet Supplies Business. In FY2026 (ending March 2026), sales fell sharply by 22.8% year on year, making it urgent to strengthen product competitiveness and expand sales channels toward demand recovery. Given the continued mid- to long-term growth in the number of households owning pets, room for recovery remains.
The company has partially sold cross-shareholdings (gain on sale of ¥174 million in FY2026, ending March 2026) and sold idle land (gain on sale of ¥102 million in the same period), continuing efforts to improve asset efficiency and secure investment capacity. The balance of investment securities remains substantial at ¥3,765 million, and further reduction going forward will support financial flexibility.
Last updated: July 19, 2026