MURAKI CORPORATION
7477・Standard Market・Wholesale Trade
Business
Muraki Corporation, founded in 1957, is a specialty wholesaler of car care related products listed on the Standard Market of the Tokyo Stock Exchange. The group consists of the company and three subsidiaries: Mitsuwa Shokai Co., Ltd., Tech Corporation Co., Ltd., and Muraki Kyoryoku Jigyo Kyodo Kumiai (Muraki Cooperative Business Association). Sales of car care related products to service stations (SS) account for 99% of net sales, with the company supplying Automotive Repair Parts, Automotive Chemicals & Car Wash Related Products, Service Station Supplies & Store Fixtures, Automotive Accessories & Promotional Gifts, and other items through a nationwide sales network covering 10 regions. Major customers include oil distributor-affiliated companies such as ENEOS Trading and Apollo Link, and the company also operates a Commercial Rent-a-Car Service business.
Business Model
A specialized wholesale model that procures products from supplier manufacturers and sells them to service stations nationwide through the core sales approach of "Customized Proposals + Regular Visits PLUS." A stable customer base is secured based on designated distributor agreements with petroleum wholesalers (long-term contracts dating back to 1976). Gross profit is secured through appropriate pass-through of costs to selling prices and efficient control of procurement and inventory. ROA and ROE are positioned as key management indicators.
Company Strengths
The company has held long-term designated distributor agreements since 1976 with oil wholesaler-affiliated companies such as ENEOS Trading (11.2% of sales) and Apollo Link (10.0% of sales). Its sales network spanning 10 regions nationwide was already established by 1989, giving it a customer base and sales infrastructure that competitors cannot easily replicate in a short period.
Even amid an environment of rising procurement costs across multiple areas, appropriate pass-through of prices and efficient control of purchase and inventory volumes allowed gross profit for FY2026 (ending March 2026) to exceed the previous year's level. By product category, the company secured profit even in phases of rising costs, such as for Automotive Repair Parts (procurement up 108.3% year on year).
As of the end of FY2026 (ending March 2026), the equity ratio stood at 67.2%, with zero interest-bearing debt outstanding (cash flow to interest-bearing debt ratio of 0.0 years). The company held ¥1,517 million in cash and cash equivalents, and its interest coverage ratio is at a level where calculation is unnecessary. This stable financial foundation underpins its capacity for investment in new business ventures.
ENVALITH's Perspective
Performance Trend
Revenue rose from ¥7,214 million in FY2022 to ¥7,825 million in FY2026, maintaining a moderate growth trend with five consecutive periods of increase. On the other hand, operating profit peaked at ¥194 million in FY2023 before declining to ¥137 million in FY2026, marking a second consecutive period of profit decline. Net income plunged sharply from ¥198 million in FY2024 to ¥66 million in FY2026, falling even below the FY2022 level of ¥102 million. As an external factor, sustained high crude oil prices stemming from the situation in the Middle East, combined with heightened consumer thrift consciousness, suppressed demand for car care. As internal factors, cost increases such as base pay raises, expenses for expanding the commercial rent-a-car fleet, and the stock benefit provision (newly recorded at ¥14 million) squeezed profits. The earnings forecast for FY2027 (ending March 2027) has been left undetermined due to the risk of a sharp deterioration in the Middle East situation, leaving the timing of a profit recovery uncertain.
Growth Strategy
Expanding share within service stations through deeper core sales activities, combined with the development of new businesses such as rent-a-car services
The sales style promoted through the previous fiscal year has been established as the core sales approach, achieving year-on-year growth in mainstay products (oil elements, wiper blades, batteries, and car wash related products). In the current period as well, all mainstay products exceeded the previous year's levels, contributing to an increase in gross profit.
The company promoted new customer acquisition nationwide, developing nearly 70 new customers in the current period, contributing to sales. As a response to the structural shrinkage risk in the service station industry, expanding sales to non-service-station customers contributes to stabilizing the medium- to long-term sales base.
Both the Yokohama Seya and Sapporo Shiroishi locations increased their fleet of rental vehicles and have been performing well. Further store openings are under consideration. The increase in expenses associated with the vehicle fleet expansion is one factor behind the increase in SG&A expenses for the current period, but the business is in a development stage as a new revenue source.
A training session for all management personnel was held in November 2025, and hierarchical training programs have continued throughout the year. Through the sharing of corporate philosophy and brand value, the company continues to pursue business expansion and enhancement of corporate value by promoting an external brand strategy. The introduction of an employee stock benefit trust (J-ESOP-RS) has also strengthened employee incentives toward improving business performance.
Last updated: July 19, 2026