SHINTO COMPANY LIMITED
5380・Standard Market・Glass & Ceramics Products
Business
Shinto Co., Ltd., founded in 1963 and headquartered in Takahama City, Aichi Prefecture, is a single-segment company principally engaged in the manufacturing and sale of clay roof tiles and Roofing Construction. Its core products include product and merchandise tiles centered on F-shape and S-shape tiles such as the "CERAM Series" and "SHINTO Kawara S," alongside renovation-related merchandise such as sheet metal and auxiliary materials (Sheet Metal Sales & Auxiliary Materials). Its customer base is diversified, with no single customer accounting for more than 10% of sales. The company listed its shares on the over-the-counter market in 2001, and in January 2024 also listed on the Sapporo Securities Exchange's main market. Production takes place at multiple plants in Hekinan, Aichi Prefecture, and the company maintains quality control and development functions through its Techno Center.
Business Model
The company manufactures F-type and S-type roof tiles at its own factories (Takahama City and Hekinan City, Aichi Prefecture), while also purchasing J-type and S-type tiles and other products from other companies for sale as merchandise tiles, adopting an integrated manufacturing-and-sales model. In addition, purchasing and sales of sheet metal, auxiliary materials, and other products for the renovation market have been expanding, with sales of auxiliary materials and others in FY2025 reaching ¥2,171 million, accounting for approximately 47% of net sales. The structure secures profitability through price pass-through via sales price revisions and improvements in product yield rates.
Company Strengths
Amid a shift in tile shipment trends toward F-shaped tiles, a competitor discontinued manufacturing of S-shaped tiles, causing sales of the company's S-shaped tile products to expand sharply by 65.1% year on year (sales result of ¥104 million). This demonstrated the company's sales capability to nimbly capture market share following a competitor's exit.
Sheet metal sales increased by ¥181 million compared to the previous period, reflecting strong performance of products for the renovation market. Purchase results for auxiliary materials and others reached ¥1,322 million, up 61.1% year on year, functioning as a revenue source that compensates for the decline in new housing starts.
The company implemented appropriate price pass-through in response to rising manufacturing costs due to high crude oil prices and yen depreciation. The gross profit margin for the 2025 fiscal period improved to 19.5% (+3.2 points year on year), with gross profit improving to ¥903 million (from ¥741 million in the previous period), and operating profit turned from an operating loss of ¥63 million in the previous period to a profit of ¥105 million.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years shows a persistent gradual decline: ¥5,013 million (FY2021) → ¥5,420 million (FY2022) → ¥5,043 million (FY2023) → ¥4,521 million (FY2024) → ¥4,627 million (FY2025). Cumulative revenue for the first nine months of 3Q FY2026 (ending June 2026) was ¥3,180 million (down ¥337 million year on year), gross profit was ¥507 million (down ¥171 million year on year), operating loss was ¥78 million (versus an operating profit of ¥68 million in the same period of the prior year), and quarterly net loss was ¥61 million. External factors—a continued year-on-year decline in owner-occupied housing starts, and rising manufacturing costs driven by yen depreciation and persistently high energy prices—directly hit profitability. The full-year earnings forecast was withdrawn as of May 8, 2026, and the expected level of results for the year remains undetermined.
Growth Strategy
Promoting expanded sales of core products, new customer development, and revenue diversification through the launch of a real estate leasing business.
The company continues to seek out new customers through active sales activities utilizing SNS and remote sales. However, in the cumulative nine months of FY2026 (ending June 2026), net sales declined 9.6% year on year due to deteriorating demand conditions, and results have not yet materialized.
The real estate leasing business began recording revenue from the third quarter of FY2026 (ending June 2026), recognizing net sales of ¥16 million and operating profit of ¥10 million in the cumulative nine months. It has been formally added as a reportable segment and has begun functioning as a revenue source that complements the economic sensitivity of the Tile Manufacturing & Sales Business.
In response to the weak yen and rising energy prices, the company is working to pass through costs to selling prices while strengthening manufacturing process control and building an efficient production system. In the cumulative nine months of FY2026 (ending June 2026), due to the deteriorating market environment, cost pass-through was insufficient, and the gross profit margin declined from 19.3% in the same period of the previous year to 15.9%.
Leveraging the listing on the Sapporo Securities Exchange Main Market in January 2024, the company aims to raise brand awareness and develop new customers in the Hokkaido and Tohoku regions. At present, the effects of regional sales expansion have not yet been reflected in business results due to the slump in housing starts.
Last updated: July 17, 2026