UNIVERSAL ENGEISHA CO.,LTD
6061・Standard Market・Services
Business
Universal Engei Co., Ltd. is a comprehensive horticulture company founded in 1974. Operating through a 23-company group structure including 22 consolidated subsidiaries, it runs three business segments: Green Business (Rental Green and Green Service (Landscaping, Display Construction, etc.)), Wholesale Business, and Retail Business. In its core Green Business, the company provides foliage plants, artificial flowers, and fresh flowers on a rental basis to corporate clients such as offices, commercial facilities, and hotels, handling everything through to regular maintenance. Domestically, it operates nationwide with a focus on the Kanto Area and Kansai Area, and overseas it has locations in the United States, China, and Singapore. Consolidated net sales for FY2025 reached ¥20,507 million, and under its medium-term management plan, the company has set targets of ¥30.0 billion in net sales and ¥3.0 billion in net income for the fiscal year ending June 2028 (Reiwa 10).
Business Model
The core Rental Green business is a stock-type business model that provides plant installation and regular maintenance services based on continuing contracts with corporate customers. Contract renewals form a stable revenue base, achieving high profitability with an operating margin of 26.9% in the Kansai Area and 21.7% in the Kanto Area. In addition, the company combines flow-type revenue from landscaping and display construction, etc., with diversified revenue from the Wholesale Business and Retail Business. The company actively utilizes M&A to expand its business, sequentially acquiring domestic and overseas peer companies and affiliated companies as subsidiaries to expand its customer base and geographic coverage.
Company Strengths
Corporate Rental Green contracts constitute a stock-type model generating recurring monthly revenue. The Green Business operating margin for FY2025 remained at a high level of 17.7% (Kansai Area 26.9%, Kanto Area 21.7%). Revenue expanded approximately 2.1x over four years, from ¥9,569 million in FY2021 to ¥20,507 million in FY2025.
Since its listing in 2012, the company has carried out successive M&A transactions both domestically and overseas. Most recently, it made Plantscape, Inc. (U.S.) a subsidiary in August 2024, and made Yoshimura Zoen Co., Ltd. a wholly owned subsidiary in April 2025. As of the end of FY2025, it had built a structure of 22 consolidated subsidiaries, and Retail Business revenue reached ¥6,027 million, up 34.2% year on year.
Total net assets at the end of FY2025 stood at ¥13,448 million, with an equity ratio of 78.7%, indicating strong financial soundness. Operating cash flow secured was ¥2,586 million, and cash and cash equivalents stood at ¥4,349 million. The company maintains a financial structure with low reliance on interest-bearing debt, enabling it to fund M&A investments with its own capital.
ENVALITH's Perspective
Performance Trend
Revenue continued to grow, more than doubling over four fiscal years from ¥9,569 million in FY2021 to ¥20,507 million in FY2025. For the nine-month cumulative period of Q3 FY2026 (ending June 2026), revenue was ¥16,555 million (up 10.9% year on year), operating profit was ¥2,436 million (up 21.4%), ordinary profit was ¥2,664 million (up 33.6%), and quarterly net profit attributable to owners of the parent was ¥1,836 million (up 31.7%), with growth accelerating at every profit level. All segments—Green Business, Wholesale Business, and Retail Business—achieved both higher revenue and higher profit. As an external factor, a foreign exchange gain of ¥140 million boosted ordinary profit. The full-year forecast remains unchanged, with revenue of ¥22,840 million (up 11.4% year on year) and operating profit of ¥3,001 million (up 13.2%).
Growth Strategy
Aiming for net sales of ¥30 billion in FY2028 (ending June 2028) through M&A, overseas expansion, and investment in new business formats
The Company continues to conduct M&A and business transfers both domestically and internationally. In the third quarter under review, it acquired the rental green business of Plant Detail, Inc. through a business transfer (recording goodwill of ¥133 million). The Company intends to continue proactive investment leveraging its strong financial base (equity ratio of 78.1%, virtually debt-free).
Rental Green sales in the Overseas Area expanded from ¥1,204 million in the same period of the previous fiscal year to ¥1,482 million in the current period. However, the operating margin declined from 9.0% to 4.7%, and improving profitability alongside sales expansion is a key challenge. The Company will continue to strengthen its business foundation through subsidiaries such as Plantscape, Inc.
The Company is focusing on building a profit-oriented structure, including the consolidation and elimination of unprofitable segments. The Retail Business, which recorded an operating loss of ¥88 million in the same period of the previous fiscal year, turned profitable with a cumulative operating profit of ¥35 million for the third quarter under review. The Company aims to boost full-year earnings by capturing demand during the busy season, including Mother's Day, in the fourth quarter.
The Company implemented a stock split at a ratio of two shares for every one share of common stock, effective January 1, 2026. The forecast year-end dividend is ¥13 per share (post-split). The Company aims to improve its visibility in the capital markets by enhancing share liquidity and expanding its base of individual investors.
Last updated: July 17, 2026