NIPPON PALLET POOL CO.,LTD.
4690・Standard Market・Services
Business
Nippon Pallet Pool Co., Ltd. is a pallet rental specialist company established in 1972. It provides rental of wooden and plastic pallets as well as material handling and transport equipment through a nationwide network of approximately 200 depots, promoting the spread of integrated palletization (mechanized handling transport without transshipment from shipment to arrival). Its main customers are companies related to petrochemical resins, with Prime Polymer Co., Ltd. (21.4% of sales), Sumitomo Chemical Co., Ltd. (11.0%), and Nippon Express Co., Ltd. (8.0%) accounting for the top three. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Customers do not own pallets themselves; instead, they rent only the number they need from the Company's depots and can return them to any depot nationwide once no longer needed. By centrally handling pallet repair, cleaning, and maintenance management, the Company reduces customers' logistics costs. Rental income accounts for approximately 92.9% of net sales (¥6,445 million in FY2025 (ended March 2025)), with the remainder supplemented by sales, freight forwarding, and ancillary business income. Depreciation expense is the primary cost item, giving the business a structure in which restraint on new capital investment directly affects profit levels.
Company Strengths
The nationwide depot network of approximately 200 locations, built up over more than 50 years since the company's founding in 1972, enables provision of pallets "anytime, anywhere, in the required quantity." The nationwide network was completed in 1992, and it would be difficult for a new entrant to build logistics infrastructure of comparable scale in a short period, forming a high barrier to entry.
As of the end of FY2025 (ending March 2025), the company held 3,173 thousand pallets (acquisition cost of ¥17,755 million) and other logistics equipment (acquisition cost of ¥1,605 million). Total leased assets reached ¥19,360 million on an acquisition cost basis, and this asset scale forms the foundation for stable rental income.
At the end of FY2025 (ending March 2025), the equity ratio stood at 63.6% (improved from 56.6% in the previous fiscal year), and the debt repayment period was 1.2 years, indicating high financial soundness. Interest-bearing debt remained low at ¥2,683 million, while the company stably generated operating cash flow of ¥2,268 million, giving it a financial base capable of supporting both capital investment and shareholder returns.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of FY2026 (ending March 2026) (April–December 2025), revenue was ¥5,300 million (+1.0% YoY), securing a slight increase, but profitability deteriorated significantly, with operating profit of ¥260 million (-17.5% YoY), ordinary profit of ¥331 million (-17.9% YoY), and quarterly net profit of ¥212 million (-19.7% YoY). The main cause was rising transportation costs and storage fees driven by surging labor costs and fuel prices, with operating expenses increasing 2.2% YoY, as cost increases outpaced revenue growth. The full-year forecast remains unchanged at revenue of ¥7,065 million (+1.9% vs. prior year), operating profit of ¥404 million (+9.5%), and net profit for the period of ¥292 million (-5.5%). Looking at the trend over the past five fiscal periods, profit has deteriorated for three consecutive periods since peaking at ¥984 million in operating profit in FY2023 (ended March 2023), and following ¥369 million in FY2025 (ended March 2025), FY2026 (ending March 2026) is expected to remain at a similarly low level. As external factors, rising raw material prices and foreign exchange fluctuations are affecting the cost structure.
Growth Strategy
Under the Three-Year Management Plan 2027, the company aims to achieve net sales of ¥10,000 million in FY2031 through new industry development, expansion of the Eki-Pare (station pallet) business, and M&A.
Rentals to major customers, comprehensive chemical manufacturers, saw the declining trend in transaction volume come to a halt, recovering to a level exceeding the same period of the previous year in the cumulative Q3 of FY2026 (ending March 2026). Continuing to strengthen relationships with core customers remains directly linked to stabilizing the earnings base.
The pallet rental and return service utilizing JR Freight station depots has been expanded to 13 freight stations. By leveraging collaboration with rail logistics, the company aims to create new customer touchpoints and improve utilization rates by complementing its existing depot network.
The company is promoting the formation of a customer base centered on the chemical fiber industry and strengthening collaboration with logistics companies. Rentals to general customers have been sluggish due to suppressed personal consumption amid rising prices, making it a priority to diversify industries and reduce the risk of customer concentration.
Net rental equipment stood at ¥7,357 million at the end of Q3, an increase of ¥736 million from the end of the previous fiscal year. Continued capital investment is building the foundation for future growth in rental income, though it acts as a factor increasing depreciation expenses in the short term.
The company continues to consider M&A opportunities based on the Three-Year Management Plan 2027. It aims to achieve net sales of ¥10,000 million and ordinary income of ¥1,000 million in FY2031, but there remains a significant gap versus the current full-year forecast (net sales of ¥7,065 million and ordinary income of ¥457 million), requiring concrete progress disclosures going forward.
Last updated: July 17, 2026