HATSUHO SHOUJI CO.,LTD.
7425・Standard Market・Wholesale Trade
Interior Building Materials Business
Hatsuho Shoji's largest segment. Nationwide sale of building materials to interior finishing contractors.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Q1 cumulative, FY2026 (ending March 2026)) | ¥4,213 million | ¥4,671 million (Q1 cumulative, FY2025 (ending March 2025)) | ↓ |
| Segment operating profit (Q1 cumulative, FY2026 (ending March 2026)) | ¥213 million | ¥302 million (Q1 cumulative, FY2025 (ending March 2025)) | ↓ |
| Net sales (full year, see existing report) | ¥18,079 million | — | — |
| Segment operating profit (full year, see existing report) | ¥1,037 million | — | — |
Business Details
This segment targets interior finishing contractors (ceiling finishing and partition work contractors) as its primary customers, selling interior construction materials such as Lightweight Steel Framing Materials and Gypsum Board. It is a segment directly operated by the Company (Hatsuho Shoji Co., Ltd.) and is the largest business, accounting for approximately 50% of consolidated net sales. The Company operates sales locations nationwide, including the Greater Tokyo area, Chubu, Kinki, and Chugoku-Shikoku regions, with the Just-In-Time Delivery Service as a key strength. As a medium- to long-term strategy, the Company aims to increase market share by opening new sales locations in the Greater Tokyo and Osaka metropolitan areas and diversifying its product lineup, including materials for system ceilings and flooring work.
Recent Overview
In Q1 FY2026, sales and profit both declined significantly due to weak domestic construction demand.
For the cumulative first quarter of FY2026 (ending March 2026), the Interior Building Materials Business recorded net sales of ¥4,213 million (down 9.8% year on year) and segment operating profit of ¥213 million (down 29.4% year on year). Construction demand was sluggish nationwide, with slow movement of goods and fewer projects, causing the busy season—which typically continues through March—to wind down nearly a month earlier than usual, resulting in sales performance weaker than expected. This segment recorded the largest decline in sales among all business segments.
Key Products
Growth Drivers
- Steady construction demand in the non-residential market (large-scale commercial facilities, office buildings, hospitals, etc.)
- Full-scale commencement of large-scale redevelopment projects centered on the Tokyo-Nagoya-Osaka metropolitan areas from the second half of the fiscal year onward
- Certain results achieved through stronger efforts to secure large-scale construction orders in the Chubu region
- New revenue in the western Japan region from the opening of the Yamaguchi Delivery Center (January 2026)
- Improved market share through diversification of the product lineup, including materials for system ceilings and flooring work
Risks
- Decline in the number of projects and renewed price competition due to sluggish construction demand (particularly in regional cities and the Chugoku-Shikoku region)
- Risk of failing to meet sales plans due to seasonal fluctuations, such as the earlier-than-usual end of the busy season
- Construction delays and stagnation in material shipments due to chronic labor shortages and extreme heat
- Decline in profit margins due to rising costs, primarily labor costs
- Risk of postponement of redevelopment projects in the Greater Tokyo area
- Long-term gradual decline in market size due to the declining birthrate, aging population, and shrinking construction demand in regional cities
Last updated: March 26, 2026