TOW CO.,LTD.
4767・Standard Market・Services
Business
TOW Co., Ltd. is an event and promotion specialist company established in 1976. Under the purpose of "creating new-era experiences," the company operates across three categories: Real Event, Hybrid Event, and Integrated Promotion. Its consolidated subsidiaries include T2 Creative Co., Ltd., which handles production and operations, MOTTO Co., Ltd., which produces commercials and web videos, and Qetic Inc., which handles digital content. Major clients include Hakuhodo Inc. (26.9% of net sales) and other major advertising agencies and business corporations. The company transferred from the TSE Prime Market to the Standard Market in October 2023. Consolidated net sales for FY2025 (ended June 2025) were ¥17,783 million.
Business Model
Producers assemble optimal teams from in-house specialist staff, consolidated subsidiaries, and outsourcing partners according to each project's requirements, handling everything from "analysis and research" to "effectiveness verification" on an integrated basis. This is a structure that raises the gross profit margin by expanding high-value-added fee-based work and promoting in-house production within the group. Gross profit for FY2025 (ending June 2025) was ¥3,183 million (up 8.3% year on year), with an operating profit margin of 12.1%.
Company Strengths
Founded in 1976, the company has maintained a continuous business relationship of over 40 years with Hakuhodo since receiving the order for the Hakuhodo Walkman Campaign in 1981. Sales to Hakuhodo in FY2025 (ended June 2025) amounted to ¥4,791 million (26.9% of total sales performance). This long-term track record serves as a foundation of trust for acquiring new projects.
The company's group includes T2 Creative, which handles Real Event production and operation, Motto, which handles commercials and web videos, and Qetic, which handles SNS and digital content, enabling in-house handling from real to digital. Gross profit in FY2025 (ended June 2025) rose 8.3% year on year to ¥3,183 million, maintaining high profitability.
In FY2025 (ended June 2025), work related to the Osaka Kansai Expo contributed to the Real Event category, with sales in this category reaching ¥11,247 million (up 3.6% year on year). The company's track record of handling large-scale projects for government agencies and organizations, as well as international events, is a differentiating factor versus competitors.
ENVALITH's Perspective
Performance Trend
For the nine months ended March 2026 (July 2025–March 2026), revenue was ¥13,793 million (up 10.1% year on year), operating profit was ¥1,385 million (up 2.7%), ordinary profit was ¥1,399 million (up 1.2%), and quarterly net profit attributable to owners of the parent was ¥910 million (down 0.6%). While expanding demand from the Osaka-Kansai Expo and experience-based promotional events drove revenue growth, an increase in SG&A and personnel expenses associated with corporate governance restructuring and labor environment reforms, along with unbudgeted M&A-related costs incurred during the period, weighed on profit. Revenue over the past five fiscal years has continued on an expansionary trend, growing from ¥12,209 million in FY2021 to ¥17,504 million in FY2024 and ¥17,783 million in FY2025, and the full-year forecast of ¥18,800 million (up 5.7% year on year) remains unchanged. Net profit declined slightly, also affected by an increase in income tax adjustment (from ¥73,855 thousand to ¥193,208 thousand year on year). The financial position remains sound, with total assets of ¥13,870 million, net assets of ¥10,350 million, and an equity ratio of 74.5%.
Growth Strategy
Aiming for sustainable growth through the twin pillars of "client expansion" and "domain expansion," leveraging M&A and strengthening the management foundation
The company is accumulating a track record of handling large-scale projects such as the Osaka-Kansai Expo and major automotive exhibitions, capturing growing demand for experiential promotional events. In the cumulative third quarter of FY2026 (ending March 2026), the Real Event category grew 27.0% year-on-year and served as a growth driver; securing replacement demand after the Expo closes is the next challenge.
The company aims to diversify revenue within its single segment by acquiring new business domains and customer bases through M&A. In the cumulative third quarter of FY2026 (ending March 2026), goodwill amortization increased approximately twofold year-on-year (¥14,252 thousand), reflecting the accumulation of M&A track record. M&A-related expenses not anticipated at the start of the period have also arisen, and efforts remain ongoing.
The company continues to invest in rebuilding its corporate governance structure and reforming the working environment, laying the foundation for sustainable growth. Expenses related to restricted stock increased significantly year-on-year (¥32,104 thousand), reflecting progress in developing incentive schemes. While this is a factor increasing SG&A and personnel expenses in the short term, the aim is to strengthen organizational capabilities over the medium to long term.
As part of its client expansion strategy, the company is strengthening the development of new clients to reduce the risk of revenue concentration on specific customers. Leveraging its end-to-end production system that integrates real and digital domains, it is enhancing its proposal capabilities to clients outside the Hakuhodo Group.
Last updated: July 17, 2026