KONDOTEC INC.
7438・Prime Market・Wholesale Trade
Business
Kondotec Inc. is a comprehensive materials trading group founded in 1953 (with 11 consolidated subsidiaries). The company operates four segments: Industrial Materials (manufacturing and purchase & sales of civil engineering & construction materials, etc.), Steel Structure Materials (construction-related materials for steel frame fabricators), Electrical Installation Materials (electrical installation materials for electrical contractors and home appliance retailers), and Scaffolding Construction (scaffolding erection & dismantling work, equipment sales and rental for construction firms and mid-tier general contractors). It has 7 domestic factories and also functions as a manufacturer. Through a nationwide sales network and a product lineup of over 50,000 items, it addresses demand for infrastructure-related materials across diverse industries including civil engineering, construction, logistics, shipping, electric power, and railways. Consolidated net sales for FY2026 (ending March 2026) were ¥83,949 million.
Business Model
The company combines manufacturer-level functions—with in-house factory-produced and OEM-produced products accounting for approximately 30% of sales—with stable procurement functions from numerous suppliers, supplying customers through an immediate-delivery system at nationwide locations. Sales methods have diversified beyond product sales to include construction work and rental services. Profit margins are managed through pricing power and expanded sales of high-value-added products, while the group continues to expand its sales scale and functions through M&A.
Company Strengths
The company has developed sales bases nationwide and maintains inventory at each base, establishing an immediate delivery system. It can also respond to emergency material supply during disasters. It employs numerous specialized sales staff, giving it strong sales capabilities. Combined with a product lineup of over approximately 50,000 items, this has built a customer-focused supply system that is difficult for competitors to replicate in a short period.
The company owns 7 factories domestically, with proprietary and OEM manufactured products accounting for approximately 30% of sales. It has obtained JIS labeling permits at all factories for mainstay products such as construction turnbuckles and anchor bolts, and has obtained ISO9001 and ISO14001 certification at all factories. The integrated operation of manufacturing, development, and sales enables differentiated supply of diverse products according to user needs.
Since making Sanwa Denzai a subsidiary in 2010, the company has continuously conducted M&A, including entering the Scaffolding Construction business in 2019, adding aluminum materials in 2021, and acquiring Ueda Construction in 2024, and Suzuto and Ryukyu Bridge in 2025. This has built a group structure capable of providing total service from foundation work through building completion and maintenance/repair. Most recently in FY2026 (ending March 2026), the performance contribution of 2 newly acquired subsidiaries also contributed to increased revenue and profit in the Industrial Materials segment.
ENVALITH's Perspective
Performance Trend
Revenue expanded 27% over five periods, from ¥66,139 million in FY2022 (ended March 2022) to ¥83,949 million in FY2026 (ending March 2026). FY2026 growth accelerated to +6.0% year on year, driven mainly by the contribution of newly consolidated Suzuto and Ryukyu Bridge. Operating profit turned to growth at ¥4,644 million (+4.0% year on year), but the operating profit margin declined to 5.5%, continuing a downward trend from 6.1% in FY2024 (ended March 2024). As external factors, resilient public investment, demand for LED conversion, and increased capital expenditure associated with revisions to energy-conservation standards supported revenue growth. Meanwhile, increases in personnel expenses, rent, and SG&A expenses from M&A subsidiaries have continued as cost pressures, and improvement in the gross profit margin has not fully absorbed the rise in SG&A expenses. The equity ratio stood at 55.7%, maintaining the same level as the previous period, indicating that financial soundness remains secure.
Growth Strategy
Aiming for ROE of 10% or more and DOE of 4% or more through a trinity of organic growth, peripheral reinforcement, and M&A
Made Suzuto Corporation (November 2025) and Ryukyu Bridge Corporation (December 2025) subsidiaries, achieving sales growth in the Industrial Materials segment and expanding geographic coverage into the Okinawa area. M&A continues to be positioned as a growth vehicle in FY2027 (ending March 2027), with a policy of increasing corporate value.
Continuing to promote growth strategies such as developing new sales channels and reactivating dormant customers using existing bases, as well as offering new products and expanding locations. In FY2026 (ending March 2026), this also contributed to sales growth in the Industrial Materials and Electrical Installation Materials segments, maintaining a foundation for organic growth that is not overly dependent on M&A.
Aiming to promote DX, expand logistics functions and construction systems, and improve productivity through continuous investment in equipment and human capital. In FY2026 (ending March 2026), investment expanded with ¥2,549 million in acquisitions of property, plant and equipment (including the rebuilding of the Osaka head office building). The company aims to achieve both mid- to long-term competitiveness enhancement and cost efficiency.
Continuing to increase dividends with a consolidated dividend on equity (DOE) ratio of 4.0% or more in mind. Annual dividend of ¥52 in FY2026 (ending March 2026) (up from ¥46 in the previous fiscal year), and a forecast of ¥58 in FY2027 (ending March 2026), continuing to increase dividends every fiscal period. With a target ROE of 10.0% or more, the company aims to achieve both improved profitability through M&A and capital expenditure, and shareholder returns.
Last updated: July 19, 2026