AS ONE CORPORATION

Business Details

A specialized trading company that sells scientific instruments, equipment, and consumables in wholesale form to universities, research institutions, manufacturing sites, medical facilities, and other customers. The company's core operations consist of the Laboratory & Industry segment (84.2% of net sales) and the Medical segment (15.3% of net sales), and it supports customers' purchasing efficiency and DX through digital platforms such as the Product Database "SHARE-DB" (containing over 14 million items), the Centralized Procurement System "ocean," and the Dealer-Support EC System "Wave." The group, including consolidated subsidiaries, operates both domestically and internationally.

Recent Overview

In FY2026 (ending March 2026), net sales and all profit items reached record highs, achieving 16 consecutive years of sales growth and 15 consecutive years of dividend increases

Net sales reached ¥110,698 million (up 6.7% year on year), operating income reached ¥12,838 million (up 10.7% year on year), and net income reached ¥9,179 million (up 11.5% year on year), setting record highs across all profit items. The Laboratory & Industry segment led growth at ¥93,185 million (up 8.3% year on year), while the Medical segment was soft at ¥16,925 million (down 1.0% year on year). The company relocated and newly established its Kyushu distribution center in Koga City, Fukuoka Prefecture (expanding total floor area to 2.6 times the previous size), thereby expanding logistics capacity. E-commerce net sales expanded to ¥38,259 million (up 12.8% year on year). During the period, the company acquired 403,900 shares of treasury stock (approximately ¥1.0 billion) and retired 4,740,000 shares of treasury stock. For FY2027 (ending March 2027), the company forecasts net sales of ¥117,850 million (up 6.5% year on year) and operating income of ¥12,900 million (up 0.5% year on year), although uncertainties such as the situation in the Middle East and uncertainty over the supply of petroleum-derived products have not been factored into the earnings forecast.

Key Products

Growth Drivers

• E-commerce expansion: Continued growth in EC sales driven by an increase in connected companies and expanded product listings for the Centralized Procurement System "ocean" (643 connected companies) and "Wave" (23,965 registered users) (e-commerce net sales of ¥38,259 million in FY2026 (ending March 2026), up 12.8% year on year)
• Product database expansion: Improved profitability through the expansion of SHARE-DB's product lineup to over 14 million items (an increase of approximately 1.6 million from the end of the prior fiscal year) and improved gross margins on long-tail and imported products, maintaining a gross margin of 30.2%
• Expansion of logistics capacity: Response to rapidly increasing volume and materials-handling investment/labor-saving through the relocation and new establishment of the Kyushu distribution center in Koga City, Fukuoka Prefecture (total floor area of 2,560 tsubo, 2.6 times the previous size)
• Solid growth in the Laboratory & Industry segment: Expansion of the Industry field (¥23,798 million, up 7.3% year on year), buoyed by semiconductor plant construction, and the Laboratory field (¥69,387 million, up 8.6% year on year), driven by growth in EC sales to online retailers and steady sales of high-priced equipment
• Expansion of services and original products: Growth in rental (¥722 million, up 13.8% year on year) and calibration services (¥1,474 million, up 4.2% year on year), and capacity expansion through a new rental and calibration center in Osaka City (scheduled to open in November 2026)
• Growth in overseas business: Overseas business net sales of ¥6,503 million (up 15.9% year on year), a strong performance at 104.6% of plan
• Expansion of web-only products (long-tail products): Solid growth to ¥22,530 million (up 13.4% year on year) through the strengthening of the lineup of reagents, materials, electronic materials, and other items
• Supply chain resilience: The ability to provide a stable supply through a wide range of products handled, ample inventory, and EC tools amid heightened uncertainty over product supply and prices

Risks

• Continued weakness in the Medical segment: Cost-cutting and purchasing restraint trends among medical institutions continued, with FY2026 (ending March 2026) net sales at ¥16,925 million (down 1.0% year on year). Structural challenges in the medical management environment continue, including rising material and utility costs and increased labor costs due to work-style reforms for physicians
• Uncertainty over the Middle East situation and supply/pricing of petroleum-derived products: The outlook for the supply and pricing of a wide range of petroleum-derived products, including plastics, is uncertain. The impact of this has not been factored into the earnings forecast for FY2027 (ending March 2027)
• Indirect impact of US trade policy (tariffs): Risk of reduced R&D investment, primarily among exporting companies. The start of FY2026 (ending March 2026) was somewhat weaker than the initial budget
• Rising prices and cost increases: Increased labor costs due to wage increases and active hiring, and increased opening costs and warehouse rental expenses associated with the relocation of the Kyushu distribution center. A change in the estimate of asset retirement obligations (an increase of ¥429 million) reduced operating income and other items by ¥56 million
• Decline in operating cash flow: Operating cash flow for FY2026 (ending March 2026) was ¥6,469 million, a decrease of ¥2,842 million from the prior fiscal year (¥9,311 million), mainly due to an increase in trade receivables (¥3,357 million) and an increase in income tax payments (¥3,975 million)
• Increased cash outflow from financing activities: Financing cash flow resulted in an outflow of ¥8,055 million (compared to ¥659 million in the prior fiscal year) due to repayment of long-term borrowings and acquisition of treasury stock, resulting in a decrease in cash and cash equivalents to ¥14,990 million
• Risk of economic stagnation in China: Risk of being affected by local economic conditions, as sales from the Chinese local subsidiary account for approximately 60% of overseas business sales
• Uncertainty in various promotional activities: The need to carefully determine the methods and timing of promotional activities in light of the situation in the Middle East and other factors has introduced uncertainty into SG&A expenditures