AlphaPurchase Corporation

Business Details

The MRO (Maintenance, Repair & Operations) Business sells indirect materials such as tools, consumables, repair parts, and stationery on a closed-type IT platform. Main customers are large corporate groups (approximately 80 corporate groups), primarily listed companies, and the business provides three key values—wide product selection, price competitiveness, and purchasing control—through the electronic procurement system "APMRO" and the electronic catalog "Mugen Catalog". Revenue and gross profit are primarily derived from merchandise sales activities, with product logistics basically shipped directly from suppliers. This is the core segment, accounting for approximately 79% of consolidated net sales.

Recent Overview

Impact of ASKUL attack nearly resolved by March; Mugen Catalog for large enterprises remains firm

In 1Q FY2026 (ending December 2026), the MRO Business achieved increased sales and profit, with net sales of ¥12,068 million (up 4.8% year on year) and segment profit of ¥366 million (up 18.8% year on year). Usage of the "Mugen Catalog" among large enterprises continued to be firm. On the other hand, the impact of the ransomware attack on ASKUL that occurred in October 2025 persisted through the early part of 1Q, but had recovered to nearly the pre-attack level by March. Due to the Middle East situation, procurement restrictions and price increases have occurred for petroleum-derived products, but this has also generated short-term sales increases due to customers' demand to secure inventory. SG&A expenses were generally kept under control despite an increase in personnel costs associated with wage increases, resulting in an improved profit margin.

Key Products

Growth Drivers

• Gross margin improvement through expanded use of the Mugen Catalog's automatic replacement recommendation function
• Growing need among large corporate groups for enhanced internal controls on a consolidated basis
• Deeper penetration into the existing customer base of approximately 80 corporate groups (expansion to subsidiaries and affiliated companies)
• Room for expansion from the current limited share in the long-tail MRO products market for large enterprises (estimated at approximately ¥1 trillion)
• Normalization of sales to small and medium-sized business locations as the impact of the ASKUL ransomware attack recedes
• Expected results from sales expansion measures utilizing the Mugen Catalog in the second half of FY2026

Risks

• Dependence risk on ASKUL Corporation (an important customer and supplier, with the impact of the ransomware attack persisting through the early part of 1Q)
• Uncertainty regarding the speed and extent of recovery of business flows that changed following ASKUL's ransomware incident
• Risk of order restrictions and rising purchase prices for petroleum-derived products from suppliers due to escalating tensions in the Middle East
• Risk of investment restraint among major customers such as the automotive industry due to US tariff policy
• Risk of rising SG&A expenses, including increased personnel costs associated with wage increases
• Insufficient speed of new customer acquisition (current major customers limited to approximately 80 corporate groups)