OTAKE CORPORATION
7434・Standard Market・Wholesale Trade
Business
OTAKE CORPORATION is a specialty wholesale trading company for pipe and plumbing equipment, founded in 1952. It handles a wide range of pipe and plumbing equipment including Valves & Cocks, Pipe Fittings, Pipes, Heating & Cooling Equipment, and Sanitary & Water Supply/Drainage Equipment, supplying to all construction and equipment fields ranging from private homes to industrial plants. Headquartered in Nagoya City, the company operates branches, sales offices, and distribution centers nationwide, including in Sapporo, Hokuriku, Niigata, Kanto, Tokyo, Shizuoka, Kansai, and Kyushu. It has Tanaka Sangyo Co., Ltd. (made a subsidiary in September 2024) as a consolidated subsidiary, and also operates a real estate leasing business. The company is listed on the Standard Market of the Tokyo Stock Exchange. Consolidated net sales for FY2025 (ended May 2025) were ¥32,994 million.
Business Model
The company purchases Valves & Cocks (purchases of ¥9,600 million), Pipe Fittings (¥5,313 million), Pipes (¥4,023 million), and other products from various manufacturers, and wholesales them to construction and facility equipment contractors, among others. In FY2025 (ended May 2025), total purchases amounted to ¥28,525 million and net sales to ¥32,994 million, with earnings secured through the resulting margin. Realizing price pass-through in response to manufacturer price increases is key to improving gross margin, while a finely-tuned delivery system leveraging nationwide logistics bases underpins the company's competitive advantage.
Company Strengths
Since its founding in 1952, the company has progressively developed branches, sales offices, and distribution centers nationwide, including in Sapporo, Hokuriku, Niigata, Kanto, Tokyo, Shizuoka, Kansai, and Kyushu. It has continued to expand its network recently as well, with the Mikawa Distribution Center in 2022, the Nagano Distribution Center in 2023, and the Yokkaichi Office in 2025, and this broad coverage underpins a robust customer base.
The company achieved its internal target of an ordinary income margin of 3% or higher for three consecutive fiscal years, recording 3.8% in FY2023 (ending May 2023), 3.6% in FY2024 (ending May 2024), and 3.7% in FY2025 (ending May 2025). It has maintained a stable profitability level while passing on manufacturers' price increases, demonstrating its pricing negotiation and pass-through capability as a wholesaler.
The equity ratio remained at a high level of 59.0% at the end of FY2025 (ending May 2025). Of total net assets of ¥15,388 million, retained earnings accounted for ¥12,509 million, reflecting substantial internal reserves. In addition, the company has secured overdraft agreements of ¥5,700 million and a commitment line agreement of ¥2,000 million with financial institutions, ensuring sufficient funding liquidity.
ENVALITH's Perspective
Performance Trend
Revenue rose over five consecutive fiscal periods, from ¥23,915 million in FY2021 to ¥32,994 million in FY2025. Operating profit also improved substantially, from ¥142 million in FY2021 to ¥978 million in FY2025. For the cumulative nine months of Q3 FY2026 (ending May 2026), revenue was ¥26,361 million (+8.0% year-on-year), operating profit was ¥812 million (+13.0% YoY), ordinary profit was ¥967 million (+11.2% YoY), and quarterly net income attributable to owners of the parent was ¥654 million (+10.7% YoY), representing increases in revenue and profit across all indicators. As an external factor, the recovery in orders within the pipe and plumbing equipment industry, driven by expanded production capacity and growing semiconductor demand, supported revenue growth. The gross profit margin improved slightly, from 14.2% in the same period of the previous year to 14.3%. Quarterly net income per share was ¥166.94 (versus ¥149.17 in the same period of the previous year).
Growth Strategy
Under the second medium-term management plan (FY2025–FY2027, ending May), the company is concurrently pursuing strengthening of existing business and expansion into pipe/plumbing construction and EC operations
Policy of expanding sales of core products through reinforcement of the sales structure, thereby securing stable profit. For the cumulative nine months of FY2026 (ending May 2026), net sales increased 8.0% year on year and operating profit increased 13.0% year on year, with the effects of these measures reflected in the results.
Developing new sources of revenue through building an order-receiving structure for the pipe/plumbing construction division and rebuilding the EC site. Initiatives are continuing as the second year of the second medium-term management plan. The specific sales contribution has not been disclosed in the earnings report, but the strategic vision explicitly cites promotion of growth through expansion of business domains.
Advancing digital transformation, developing a comfortable working environment, hiring diverse talent, and promoting women's active participation, among other initiatives. Practicing sustainability and human capital management is positioned as one of the pillars of the strategic vision, and efforts are ongoing.
The strategic vision of the second medium-term management plan explicitly states "realizing management conscious of capital cost and share price." The annual dividend forecast was raised from ¥37 to ¥40 (a revision from the most recently announced forecast), demonstrating a stance of strengthening shareholder returns.
Last updated: July 17, 2026