ADVAN GROUP CO., LTD.
7463・Standard Market・Retail Trade
Building Materials Business
Core business accounting for approximately 99% of Group sales. Import sales and construction work of architectural finishing materials form the pillar.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (Q1 cumulative, FY2027 (ending March 2027)) | ¥4,204 million | ¥4,068 million (Q1 cumulative, FY2026 (ending March 2026)) | ↑ |
| Segment operating profit (Q1 cumulative, FY2027 (ending March 2027)) | ¥911 million | ¥555 million (Q1 cumulative, FY2026 (ending March 2026)) | ↑ |
| Segment sales (full year, FY2025 (ended March 2025)) | ¥18,385 million | — | — |
| Segment operating profit (full year, FY2025 (ended March 2025)) | ¥3,241 million | — | — |
Business Details
The company jointly develops and imports architectural finishing materials, including stone, tile, and housing-related products, with approximately 350 top manufacturers worldwide, and sells them directly to stores, commercial facilities, houses, condominiums, etc. It also handles housing equipment such as water fixtures, system kitchens, and unit baths. Utilizing 5 showrooms nationwide and 3 proprietary logistics centers, the company sells at the same catalog price to homeowners, construction firms, and contractors. It also undertakes construction work using its own products. As the HRB Business, it also conducts wholesale of gardening-related products to home centers.
Recent Overview
Due to the catalog price revision effect, Q1 sales increased 3.4% year-on-year and operating profit surged 64.1%.
In Q1 of FY2027 (ending March 2027) (April to June 2026), Building Materials Business segment sales were ¥4,204 million (¥4,068 million in the same period of the prior year), and segment operating profit was ¥911 million (¥555 million in the same period of the prior year). Price pass-through through catalog price revisions was successful, improving the gross profit margin. The price revisions implemented in response to rising import procurement costs due to the weak yen contributed to the performance improvement. The company also continues to invest in systems and human resources, working to improve management efficiency.
Key Products
Growth Drivers
- Expected expansion of demand from luxury hotels and residential facilities, as well as inbound demand
- Introduction of new products every year through strong partnerships with approximately 350 top manufacturers worldwide
- Enhanced customer experience and expanded customer base through 5 showrooms nationwide (all locations now company-owned)
- Strengthened composite proposal capability in the housing equipment field through in-house production of unit bath manufacturing and installation (merger with Advantec)
- Passing on rising procurement costs to prices through catalog price revisions
Risks
- Prolonged elevation or further rise in import procurement costs due to the weak yen
- Delays in construction periods and postponement of large-scale project commencements due to chronic shortage of skilled workers at construction sites
- Pressure on gross profit margin due to soaring resource and raw material prices
- Risk of significant fluctuations in ordinary profit and net profit due to changes in valuation gains/losses on forward exchange contracts (does not affect operating profit but attracts significant investor attention)
- Risk of a global economic slowdown and suppressed construction investment due to changes in trade policy such as US tariff increases
Last updated: June 26, 2026