CHOFU SEISAKUSHO CO., LTD.
5946・Prime Market・Metal Products
Manufacture and Sale of Housing-Related Equipment (Single Segment)
A single-segment company engaged in the manufacture and sale of housing-related equipment, centered on water heating and air conditioning equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative Q1) | ¥11,137 million | ¥10,974 million | ↑ |
| Operating profit (cumulative Q1) | ¥537 million | ¥247 million | ↑ |
| Ordinary profit (cumulative Q1) | ¥1,149 million | ¥852 million | ↑ |
| Quarterly profit attributable to owners of parent (cumulative Q1) | ¥804 million | ¥558 million | ↑ |
| Gross profit (cumulative Q1) | ¥2,644 million | ¥2,360 million | ↑ |
| Cost of sales (cumulative Q1) | ¥8,493 million | ¥8,614 million | ↓ |
| Full-year net sales forecast | ¥48,000 million | ¥46,501 million | ↑ |
| Full-year operating profit forecast | ¥2,400 million | ¥1,712 million | ↑ |
| Full-year ordinary profit forecast | ¥5,400 million | ¥4,586 million | ↑ |
| Full-year profit attributable to owners of parent forecast | ¥3,800 million | ¥2,174 million | ↑ |
| Total assets | ¥148,119 million | ¥148,076 million | — |
| Equity ratio | 93.8% | 93.0% | ↑ |
| Quarterly net income per share | ¥23.67 | ¥16.43 | ↑ |
Business Details
The Group consists of five product categories: Water Heating Equipment (high-efficiency water heaters such as EcoFeel and EcoJozu, etc.), Air Conditioning Equipment (including heat pump-type heat source units for the European market), System Equipment (system baths, system kitchens, etc.), Solar Equipment & Others, and Engineering Division. Manufacturing and sales are handled by Choufu Co., Ltd. (Chofu Seisakusho) and three consolidated subsidiaries, with the new housing construction and renovation markets as the primary customer base, and the Group develops its business centered on high-efficiency, carbon-neutral products.
Recent Overview
In Q1 of FY2026 (ending December 2026), net sales rose slightly while operating profit more than doubled, reflecting notable cost improvement
Net sales for Q1 of FY2026 (ending December 2026) (January to March 2026) were ¥11,137 million (up 1.5% year on year), a modest increase, but cost of sales declined to ¥8,493 million (down 1.4% year on year) as Group-wide cost reduction activities took effect. Operating profit more than doubled to ¥537 million (up 117.2% year on year), while ordinary profit rose to ¥1,149 million (up 34.9% year on year) and quarterly net profit rose to ¥804 million (up 44.0% year on year), showing significant improvement on the profit side. Air Conditioning Equipment posted a 7.9% increase in sales driven by strong performance of heat pump-type heat source units for the European market, while Water Heating Equipment, System Equipment, Solar Equipment & Others, and the Engineering Division all posted year-on-year declines in sales. The full-year earnings forecast remains unchanged from the previous forecast (announced February 13, 2026).
Key Products
Growth Drivers
- Continued strong performance of heat pump-type heat source units for the European market driving increased sales in Air Conditioning Equipment (up 7.9% year on year in Q1)
- Reduction in cost of sales and improvement in operating margin through Group-wide cost reduction activities
- Capturing carbon-neutral demand through high-efficiency water heaters such as EcoFeel and EcoJozu
- Continued full-year earnings improvement effect from the product price revision implemented in June 2025
- Strategy to increase share of heat pump and high-efficiency products, and development of new overseas customers
- Steady trend in the housing renovation market supported by favorable government subsidy programs
Risks
- Weak trend in new housing starts and sluggish new-build demand due to rising construction material and labor costs (continued rises in housing prices and mortgage rates)
- Year-on-year sales decline trend in Water Heating Equipment, System Equipment, Solar Equipment & Others, and the Engineering Division
- Upward pressure on cost of sales due to persistently high prices and energy costs
- Risk of additional provisions related to the balance of provision for product warranty losses (¥1,313 million at the end of Q1)
- Uncertainty in overseas markets accompanying increased dependence on heat pump-type heat source units for the European market
- Downside risk to housing demand from rising mortgage rates due to U.S. trade policy trends and Bank of Japan rate hikes
- Raw material procurement and foreign exchange risk arising from unstable international conditions, including the situation in the Middle East (Q1 foreign exchange gains fell sharply from ¥105 million in the same period last year to ¥22 million)
Last updated: March 18, 2026