ASANTE INCORPORATED
6073・Prime Market・Services
Business
Asante Incorporated was established in 1973 and is listed on the Prime Market of the Tokyo Stock Exchange as a company specializing in termite control. Its core services consist of termite control, moisture control, and earthquake resistance work for existing wooden houses, and it also handles home renovation and pest & animal control services such as cockroach and rodent extermination. The company's sales channel is built on business partnerships with agricultural cooperatives, including the National Federation of Agricultural Cooperative Associations (Zen-Noh), with individual homeowners as its main customer base. The company continues to expand its operating area, including the establishment of a new Kagoshima sales office in April 2026, marking its entry into the Kyushu region. It operates as a single segment, recording net sales of ¥14,355 million (FY2026, ending March 2026).
Business Model
The company adopts a partnership sales model in which it conducts sales activities within designated regions using the name of agricultural cooperatives (Nokyo) and others, settling construction fees through the cooperatives after work is completed. It raises awareness of the "Shiroari Busters®" brand through TV commercials, web advertising, and other means to generate inquiries, with its own in-house installation staff completing on-site work. For installment payment services, the company partners with Orient Corporation to ensure payment convenience for customers. The structure is supported by continuing revenue from periodic post-installation inspections and re-treatment demand.
Company Strengths
Starting with the tie-up with the Fujieda City Agricultural Cooperative in 1979, the company has broadly concluded business alliances with the National Federation of Agricultural Cooperative Associations, prefectural headquarters, associated companies, agricultural cooperatives, and consumer cooperatives. This enables sales activities leveraging the name and trust of agricultural cooperatives, and has built a nationwide sales infrastructure that is difficult for competitors to replicate in a short period.
ENVALITH's Perspective
Performance Trend
Revenue was roughly flat over the five-year period, moving from ¥13,700 million in FY2022 (ended March 2022) to ¥14,355 million in FY2026 (ending March 2026). In FY2026, revenue rose slightly by ¥331 million year on year (up 2.4%), but selling, general and administrative expenses swelled to ¥9,008 million (up ¥529 million year on year), causing operating profit to decline 31.9% to ¥835 million (from ¥1,226 million in the prior period). In addition, an impairment loss of ¥284 million on the Inawashiro General Training Center was recorded as an extraordinary loss, and net profit for the period plunged 60.1% to ¥274 million (from ¥688 million in the prior period). As external factors, unstable weather and temperatures affected termite activity, and the delayed recovery in consumer sentiment reduced the cost-effectiveness of various measures. Operating cash flow contracted sharply to ¥376 million (from ¥1,120 million in the prior period), and cash and cash equivalents decreased to ¥6,751 million (from ¥7,106 million).
Growth Strategy
With securing human resources as the top priority, the company will rebuild its growth foundation under a new fixed three-year medium-term management plan, targeting net sales of ¥16,900 million in FY2029 (ending March 2029)
The company implemented revisions to employment conditions primarily targeting new hires (including improved treatment such as an increase in annual holidays). In FY2026 (ending March 2026), the number of new hires increased, and the total number of employees turned upward for the first time in five years. In FY2027 (ending March 2027), costs from improved treatment will be incurred ahead of results, but expanding the capacity to generate sales through securing human resources is positioned as the top priority of the medium-term plan.
The company continued to stimulate demand through TV commercials, newspaper inserts, web advertising, and PR activities utilizing "Shiroari Busters®" (Termite Busters). The number of inquiries and surveys increased, but due to unstable weather and delays in the recovery of consumer sentiment, results did not reach a level commensurate with the advertising expenditure. The company plans to continue investing in advertising going forward.
An electronic mapping system was introduced at all branches, and in indirect departments, the company has begun improving operational efficiency through the introduction of generative AI. Going forward, the company will work to improve contract acquisition accuracy by utilizing accumulated data, consider the introduction of physical AI, and expand the use of generative AI, aiming to improve productivity and profitability across the group as a whole.
The company is transitioning from its conventional rolling method to a fixed three-year medium-term management plan. With FY2027 (ending March 2027) as the first year, the plan is positioned as "three years to rebuild the foundation for growth," targeting net sales of ¥16,900 million, operating income of ¥1,440 million, an operating margin of 8.5%, and net income of ¥900 million by FY2029 (ending March 2029).
Last updated: July 19, 2026