NIPPON PALLET POOL CO.,LTD.
4690・Standard Market・Services
Nippon Pallet Pool Co., Ltd. (Pallet Rental Business)
One of the only nationwide pallet pool operators in Japan. A single-segment business supporting logistics efficiency.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative 3Q, current fiscal year) | ¥5,300 million | ¥5,248 million (same period of prior year) | ↑ |
| Operating profit (cumulative 3Q, current fiscal year) | ¥260 million | ¥315 million (same period of prior year) | ↓ |
| Ordinary profit (cumulative 3Q, current fiscal year) | ¥331 million | ¥403 million (same period of prior year) | ↓ |
| Quarterly net income (cumulative 3Q, current fiscal year) | ¥212 million | ¥265 million (same period of prior year) | ↓ |
| Quarterly net income per share (cumulative 3Q) | ¥134.56 | ¥157.51 (same period of prior year) | ↓ |
| Total assets (end of 3Q) | ¥10,954 million | ¥10,156 million (end of prior fiscal year) | ↑ |
| Net assets (end of 3Q) | ¥6,641 million | ¥6,459 million (end of prior fiscal year) | ↑ |
| Equity ratio (end of 3Q) | 60.6% | 63.6% (end of prior fiscal year) | ↓ |
| Net sales (full-year forecast) | ¥7,065 million | ¥6,935 million (prior fiscal year actual) | ↑ |
| Operating profit (full-year forecast) | ¥404 million | ¥369 million (prior fiscal year actual) | ↑ |
| Depreciation expense (cumulative 3Q) | ¥1,565 million | ¥1,620 million (same period of prior year) | ↓ |
Business Details
Founded in 1972. The company's core business is the rental of wooden and plastic pallets as well as material-handling and transport equipment such as Nestainers and roll boxes, operating a pallet pool system that provides pallets "anytime, anywhere, in the quantity needed" through a nationwide network of approximately 200 depots. Major customers include petrochemical resin-related companies (Prime Polymer Co., Ltd., Sumitomo Chemical Co., Ltd.) and logistics companies (Nippon Express Co., Ltd.). Sales and freight forwarding revenue are ancillary to rental and form a single-segment structure.
Recent Overview
Net sales increased slightly, but higher costs led to a roughly 18-20% year-on-year decline in profit; the year-end dividend forecast was revised to no dividend.
Net sales for the nine months ended December 2025 (cumulative 3Q of FY2026, ending March 2026) came to ¥5,300 million, a slight increase of 1.0% year on year. While the decline in rental transaction volume for comprehensive chemical manufacturers was halted and exceeded the same period of the previous year, rentals to general customers remained sluggish due to consumption restraint amid rising prices. On the cost side, transport costs and storage fees rose on the back of higher labor and fuel costs, pushing operating expenses up ¥106 million (2.2%) year on year to ¥5,039 million. As a result, operating profit fell significantly to ¥260 million (down 17.5% year on year) and quarterly net income fell to ¥212 million (down 19.7% year on year). Additionally, per today's "Notice Regarding Revision to Year-End Dividend Forecast (No Dividend)," the year-end dividend for FY2026 (ending March 2026) is now expected to be omitted (compared with ¥59.00 in the prior fiscal year). There has been no revision to the full-year earnings forecast (net sales of ¥7,065 million, operating profit of ¥404 million).
Key Products
Growth Drivers
- Halting the decline in rental transaction volume for comprehensive chemical manufacturers (recovered to a level exceeding the same period of the previous year in the cumulative 3Q of FY2026, ending March 2026)
- Expansion of the "Eki-Pare" station pallet business (rollout of pallet rental and return services utilizing depots within JR Freight rail yards, now deployed at 13 freight stations)
- Development of new business sectors for transactions (building a customer base centered on the chemical fiber industry and strengthening collaboration with logistics companies)
- Reduction in depreciation expense through more effective use of existing assets (cumulative 3Q depreciation expense of ¥1,565 million, down from ¥1,620 million in the same period of the previous year)
- Promotion of capital expenditure and consideration of M&A under the three-year Management Plan 2027, and pursuit of the long-term vision (net sales of ¥10.0 billion and ordinary profit of ¥1.0 billion for fiscal year 2031)
- Expansion of rental-use (leased) assets through active investment, increasing operating assets (balance of ¥7,357 million at end of 3Q, up from ¥6,621 million at the end of the prior fiscal year)
Risks
- Risk of decreased rental volume due to continued production adjustments and inventory reductions by major customers (petrochemical resin-related companies)
- Rising operating expenses such as transport costs and storage fees due to increases in labor costs and fuel prices (up ¥106 million year on year in cumulative 3Q)
- Sluggish growth in rental demand from general customers amid consumption restraint caused by rising prices
- Setback in shareholder returns due to the revision of the year-end dividend forecast to no dividend (down from ¥59.00 in the prior fiscal year to no dividend forecast for FY2026, ending March 2026)
- Significant shortfall in actual results relative to ROE and EPS targets (10% or more and ¥350 or more, respectively; full-year forecast EPS of ¥185.10)
- Rising financial leverage due to increased borrowings (total short- and long-term borrowings: ¥2,258 million at end of prior fiscal year → ¥2,660 million at end of 3Q) and declining equity ratio (63.6% → 60.6%)
Last updated: June 24, 2025