SAFTEC CO.,LTD.
7464・Standard Market・Wholesale Trade
Business
Seftec Corporation, founded in 1952, is a specialized company that operates a nationwide network for the sale and rental of safety products essential for construction site safety management. It supplies Signs & Signboards, Safety Equipment, Safety Warning Signs, Safety & Disaster Prevention Products and other items to contractors engaged in public and private construction projects, and also handles high-value-added system products such as AI cameras. Its sales channels consist of three formats—direct sales, wholesale, and rental—with rental sales accounting for approximately 55% of the total. The company is listed on the TSE Standard Market. It has a vertically integrated business structure in which its subsidiary Tohanshin Co., Ltd. handles the manufacturing of Safety Equipment and signage products.
Business Model
Of net sales of ¥10,111 million, rental sales account for ¥5,605 million (approximately 55%), with recurring-revenue rentals forming the revenue base. Sales supply products to end users and distributors through direct sales and wholesale channels. The company manages costs by combining products manufactured by subsidiaries with those procured overseas, while enhancing customer satisfaction through rapid supply via a nationwide network of locations. Capital expenditures are centered on the purchase of rental assets and lease acquisitions, with financial operations conducted primarily using internal funds.
Company Strengths
Since its founding in 1952, the company has expanded branches and sales offices nationwide from Hokkaido to Okinawa, building a community-focused, rapid product supply system. Through appropriate inventory allocation and securing stockyards, it possesses a nationwide distribution infrastructure that competitors find difficult to replicate in a short period. This supply capability forms the foundation of the competitive advantage that sustains and expands order volumes.
In FY2026 (ending March 2026), Rental Service sales were ¥5,605 million, accounting for approximately 55% of total sales. Rental demand continues to expand against the backdrop of construction companies' cost reduction needs, and the recurring-revenue rental model underpins sales stability. With an equity ratio of 62.5% (FY2026, ending March 2026), the company also maintains high financial soundness, preserving its capacity for continued investment in rental assets.
Subsidiary Tohanshin Co., Ltd. manufactures barricades, fencing, and signage, achieving cost management through intra-group procurement. In addition, the company is promoting an increase in the overseas procurement ratio for its mainstay products and the in-house production of signboard fabrication work, establishing a system to reduce unit procurement costs through concentrated purchasing even amid rising procurement prices.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥10,111 million (down 1.9% year on year), remaining flat at around ¥10,000 million for five consecutive periods. On the other hand, operating profit was ¥245 million (down 30.9% year on year), ordinary profit was ¥264 million (down 26.4% year on year), and net income was ¥143 million (down 37.6% year on year), with the deterioration in profitability accelerating. As external factors, rising procurement prices, increased transportation costs, and surging labor costs have continued, causing gross profit to decline to ¥4,511 million (from ¥4,685 million in the previous period). SG&A expenses were also only reduced by ¥64 million year on year to ¥4,266 million, a situation in which cost absorption is failing to keep pace. For FY2027 (ending March 2027), a further decline in profit is forecast, with operating profit projected at ¥232 million.
Growth Strategy
Revenue recovery through expanded sales of new AI camera products, rental efficiency improvements, and strengthened consultative sales
The Company is expanding data acquisition services utilizing AI camera products for on-site safety management and crime prevention, aiming to improve the turnover rate of high-value-added products. By adding value to conventional safety products, the Company seeks to differentiate itself from price-based competition, though the contribution to sales remains limited at present.
The Company is adjusting selling prices to pass on rising procurement costs, while strengthening consultative sales tailored to customer needs. In FY2026 (ending March 2026), the gross profit margin declined to 44.6% (45.4% in the previous period), indicating that the effect of the price revisions has remained limited.
The Company continues to improve the utilization rate of rental assets and leverage its nationwide distribution network for prompt product supply. In FY2026 (ending March 2026), rental sales were ¥5,605 million (down 2.0% year on year), a slight decline, indicating that the effects of turnover improvement have yet to materialize.
In response to the risk of rising procurement costs due to the situation in the Middle East and other factors, the Company is strengthening advance securing of products and price adjustments. In FY2026 (ending March 2026), merchandise and products increased to ¥1,468 million (up ¥150 million year on year) due to bulk purchasing ahead of anticipated procurement price increases, reflecting a response through inventory buildup.
Last updated: July 19, 2026