HATSUHO SHOUJI CO.,LTD.
7425・Standard Market・Wholesale Trade
Business
Hatsuho Trading Co., Ltd. is a construction materials specialty trading company founded in 1958 (marking its 80th anniversary in February 2026). It comprises three segments: the Interior Building Materials Business (nationwide sales of Lightweight Steel Framing Materials, Gypsum Board, etc. to interior finishing contractors), the Exterior Business (sales of carports, fences, and similar products to exterior construction contractors, mainly in the Kansai area, through its subsidiary Aisin Co., Ltd.), and the Living Environment Related Business (sales of Colored Steel Sheets, solar power generation roofing, architectural hardware, and other products to construction contractors and wholesalers). Its main customers are contractors in the private capital investment sector (office buildings, commercial facilities, condominiums, individual houses, etc.), and it conducts business operations focused exclusively on the domestic market. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
A stock-type wholesale model that procures construction materials from manufacturers and delivers them in small lots, quickly, to construction contractors nationwide through sales offices and delivery centers. The company leverages its "Just-In-Time Delivery Service" as a competitive advantage, having built a delivery system aligned with the demand timing of construction sites. In the Exterior Business, the company has a scale-merit type earnings structure in which profit margins improve in proportion to increases in sales volume. The source of earnings is the trading margin (the difference between purchase price and selling price), and profitability is determined by volume expansion and price management.
Company Strengths
Revenue grew for 5 consecutive periods from ¥29,910 million in FY2021 to ¥35,445 million in FY2025, with FY2025 marking a new record-high consolidated revenue. In the mature construction materials wholesale market, the company has achieved sustained revenue growth by capturing non-residential demand, opening new locations, and expanding the Exterior Business.
Although ROE in FY2025 declined by 2.3 percentage points year on year, it remained at 8.5%, achieving the company's own target of "ROE above 8%." The equity ratio also improved to 45.1% (68th fiscal period), and the interest coverage ratio stood at 385.5x, maintaining a high level of financial soundness.
Since its founding in 1958, the company has expanded its sales offices and delivery centers nationwide, starting from Nagoya. In January 2026, it opened the Yamaguchi Delivery Center to strengthen coverage in western Japan. Leveraging its strength in nimble, flexible material delivery, the company differentiates itself from competitors through its Just-In-Time Delivery Service, which aligns with the demand timing at construction sites.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥29,910 million in FY2021 to ¥35,445 million in FY2025, but turned to a decline in Q1 of the fiscal year ending December 2026, coming in at ¥8,450 million (down 6.5% year on year). Operating profit peaked at ¥1,421 million in FY2023, then declined for two consecutive years to ¥1,289 million in FY2024 and ¥1,217 million in FY2025, and in Q1 of the fiscal year ending December 2026 it deteriorated sharply to ¥275 million (down 35.1% year on year). External factors—weakness in housing construction, persistently high construction costs, elongated construction progress due to labor shortages, and customer attrition following preemptive price hikes by major manufacturers—combined to cause revenue declines across all three segments. Coupled with an increase in SG&A expenses, the deterioration in the profit structure has become pronounced. The full-year forecast (revenue of ¥37,200 million, operating profit of ¥1,330 million) remains unchanged, but given the Q1 progress rate, there is a high degree of dependence on the latter half of the year.
Growth Strategy
Aiming for ¥40,000 million in sales by 2027 through diversified expansion of three business segments and capturing non-residential demand
A strategy to actively capture non-residential construction demand—large-scale commercial facilities, office buildings, hospitals, etc.—to compensate for the prolonged slump in the residential market. However, in Q1 of FY2026 (ending March 2026), sales volume for non-residential applications also fell short of expectations, and the effect remained limited.
The Yamaguchi Delivery Center was opened in January 2026, strengthening the supply system for the western Japan region. It is positioned as a new revenue source for the Interior Building Materials Business, but Q1 results for the Interior Building Materials Business remained difficult, down 9.8% year on year, and the contribution effect has yet to materialize.
In the Exterior Business, there is a plan to integrate the Kobe Nishi Sales Office and Kobe Distribution Center to strengthen sales capability and logistics functions in the western Kinki region. Given that Q1 saw customer attrition due to preemptive price increases by major manufacturers, restoring the customer base through the integration effect is an urgent priority.
In the Living Environment Related Business, thorough cost management enabled Q1 operating profit to increase 5.7% year on year even amid declining sales. The company continues its policy of cultivating environment-related products such as solar power generation and EcoCute, as well as maintenance construction work, as next-generation growth pillars.
The medium-term target is to achieve sales of ¥40 billion by 2027. This requires further growth of over 7.5% from the full-year forecast of ¥37,200 million for FY2026 (ending March 2026), and given the current slump in construction demand and the declining sales trend, achieving this target is becoming increasingly difficult.
Last updated: July 17, 2026