MURAKI CORPORATION

Business Details

A wholesale business selling automotive repair parts, automotive chemicals, service station supplies, car wash related products, promotional gifts, etc., with service stations (SS) as primary sales destinations. A single reportable segment handled by the Company and its subsidiary Mitsuwa Shokai Co., Ltd. Major customers are ENEOS Trading Corporation (segment sales of ¥879 million for the current period) and Apollo Link Co., Ltd. (¥780 million). The Company has developed a nationwide sales network and adopts "Customized Proposals + Regular Visits PLUS" as its basic sales strategy. It also promotes expansion of sales areas beyond SS, developing nearly 70 new customers during the current period.

Recent Overview

Net sales increased 3.7% year-on-year, but operating profit and net profit declined due to higher costs

In FY2026 (ending March 2026), net sales reached ¥7,825 million (up 3.7% year-on-year), achieving increased sales. Core products (oil elements, wiper blades, batteries, car wash related products) as well as signage such as digital signage and AdBlue exceeded the prior year. New customer development outside SS also reached nearly 70 accounts. On the other hand, SG&A expenses increased due to higher personnel costs from base pay increases and increased costs associated with expanding the rental car fleet, resulting in declines in operating profit to ¥137 million (down 4.7% year-on-year), ordinary profit to ¥158 million (down 5.8%), and net profit to ¥65 million (down 27.5%). An increase in corporate taxes from ¥77 million in the prior period to ¥92 million also pressured net profit. The earnings forecast for FY2027 (ending March 2027) remains undetermined due to the escalating situation in the Middle East.

Key Products

Growth Drivers

• Continued year-on-year sales growth for SS through the established basic sales approach of "Customized Proposals + Regular Visits PLUS"
• Strong performance in car wash related products including high-value-added car washing, and environmental compliance products such as AdBlue
• Diversification of the sales base through expansion into sales areas beyond SS (nearly 70 new customers developed in the current period)
• Steady progress in the commercial rent-a-car service business (Yokohama Seya and Sapporo Shiroishi locations) and consideration of further store expansion
• Non-consumable categories such as digital signage and equipment/tools exceeding the prior year
• Improvement in gross profit through appropriate pass-through of costs to selling prices and efficient control of purchasing volume and inventory volume

Risks

• Declining trend in actual transaction volume due to structural contraction of the SS industry (declining fuel sales, increasing business closures)
• Risk of unstable supply of petroleum-related products and significant impact on car care earnings due to rapid deterioration of the situation in the Middle East (the main reason the FY2027 (ending March 2027) earnings forecast remains undetermined)
• Weakening purchase intent for car care products due to strengthened consumer cost-saving sentiment amid persistently high fuel prices and inflation
• Profit pressure from increased SG&A expenses, including higher personnel costs from base pay increases and expenses associated with expanding the rental car fleet
• Sales concentration in ENEOS Trading Corporation and Apollo Link Co., Ltd. (approximately 21.2% of net sales combined from the top two customers)
• Continued risk from widespread increases in purchase prices and the limits of passing these on to selling prices