ENVALITH
株式会社タカショー logo

TAKASHO CO., LTD.

7590・Standard Market・Wholesale Trade

Official website
株式会社タカショー logo
TAKASHO CO., LTD.7590

Business

Takasho Co., Ltd. was established in 1980 and is headquartered in Kainan City, Wakayama Prefecture, as a manufacturer and seller of garden materials. The group, comprising 17 subsidiaries and 3 affiliated companies, operates across three domestic business axes—Pro-use (for landscaping and exterior contractors), Home-use (for general consumers), and Lighting—while also maintaining overseas operations in Europe, China, the United States, South Korea, Australia, and India. Of the consolidated net sales of ¥20,246 million, approximately 87% is attributable to the Japan segment. The company is also expanding into digital domains, including LED signage, landscape lighting, and drone show businesses through Takasho Digitech, as well as EXVIZ®AI / DX Space Proposal (GLD-LAB.), which utilizes AR, VR, and generative AI. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company manufactures garden materials and lighting equipment at its own factories in Japan and overseas (Japan and China), and sells them through diverse channels including housing manufacturers, building materials trading companies, home centers, and its direct-to-consumer EC site "Aoyama Garden." The Pro-use Business (approximately 70% of consolidated net sales) forms the core of earnings, with growth driven by expanding adoption through design incorporation in the non-residential sector (public facilities, commercial facilities). The company aims to improve profitability through working capital management utilizing a ¥5.5 billion commitment line and by improving the efficiency of selling, general and administrative expenses.

Company Strengths

In the Pro-use Business, which accounts for approximately 70% of consolidated net sales, adoption through design specification at public facilities, commercial facilities, and major restaurant chains expanded, driving non-residential segment sales to 115.4% of the prior-year level. Enhanced proposal activities leveraging the company's own exhibition "TGEF2025" and the Shinagawa Showroom proved effective, building a stable order base.

Consolidated subsidiary Takasho Digitech Co., Ltd. performed well across all its business areas—LED signage, landscape lighting, and drone shows—achieving full-year sales of 116.3% of the prior-year level. Expanding demand for commercial spaces and the full-scale launch of the drone show business established a new revenue stream, while sales outside the group also expanded.

Production output in the China segment expanded 12.0% year on year to ¥2,062 million (on a manufacturing cost basis). Internal supply to the Japan segment increased to ¥2,400 million (from ¥2,057 million in the prior period), and strengthened cost competitiveness through the use of the company's own factories also contributed to the China segment's return to profitability (segment profit of ¥51 million).

ENVALITH's Perspective

Ordinary income for Q1 FY2027 (ending January 2027) improved significantly to ¥161 million, up from an ordinary loss of ¥72 million in the same period of the previous year. However, the factor by which ordinary income exceeded operating income of ¥101 million was a foreign exchange gain of ¥68 million (compared to a foreign exchange loss of ¥343 million in the same period of the previous year). As an external factor, the underlying trend of yen depreciation has been supporting business performance, and the impact on ordinary income should the exchange rate reverse cannot be ignored. Operating income itself declined sharply, to 40.9% of the same period of the previous year (from ¥247 million to ¥101 million), suggesting that improvement in the core business's earning power remains a work in progress.

The gross margin for Q1 FY2027 (ending January 2027) declined by 1.9 points year on year due to higher manufacturing costs stemming from surging raw material costs. As an external factor, with building material prices continuing to rise, achieving the full-year operating income forecast of ¥501 million (up 129.0% year on year) will require accumulating ¥400 million in operating income over the remaining three quarters. The Q1 progress rate stood at only about 20%, and combined with the business structure's bias toward the second half, the likelihood of achieving the forecast warrants careful assessment.

The Europe segment posted a loss of ¥80 million and the United States segment a loss of ¥51 million, with losses continuing in the major overseas segments. Sales also declined, with Europe at ¥228 million (80.1% of the same period of the previous year) and the United States at ¥164 million (77.1% of the same period of the previous year). Meanwhile, inventories (merchandise, finished goods, work in process, and raw materials) remained at a high level, totaling ¥6,831 million (versus ¥6,774 million at the previous fiscal year-end). Short-term borrowings increased from ¥4,000 million to ¥5,350 million, and the equity ratio declined from 54.2% to 50.1%, making changes in the financial balance another point warranting attention.

Growth Strategy

Aiming for sales growth and improved profit structure through three pillars: the non-residential segment, DX proposals, and overseas localization

Promoting expanded adoption in design specifications for public facilities, commercial facilities, and major restaurant chains. Non-residential segment sales in the first quarter were solid at 113.5% year-on-year. Enhanced proposals leveraging the Shinagawa Showroom and the company's own exhibition "TGEF2025" have proven effective, with recovering inbound demand also providing tailwind through increased capital expenditure by hotels and commercial facilities.

The generative AI implementation service "EXVIZ®AI," provided by GLD-LAB., has shortened the production of exterior and interior perspective renderings for residential use to as little as a few tens of seconds. The company is building a DX sales foundation that combines operational efficiency with high-value-added space proposals. Strengthening of both BtoB and BtoC touchpoints is progressing through the coordination of SNS-based information dissemination and showroom visit flows.

In the United States, progress is being made in building a local procurement system aimed at reducing tariff risk, and the introduction of products to local home centers has begun. In Europe, the company is promoting sales expansion into untapped regions (France, Italy, etc.) and the introduction of Large Products such as Storage Sheds, Pergolas, and Warehouses. Overall overseas gross profit margin improved by 6.3 percentage points year-on-year, showing that the profitability-focused policy is beginning to bear fruit.

Promoting expansion of the lineup of environmentally friendly exterior building materials such as "Mokupura Board ECO" and "New Tech Wood," which sequester approximately 1.4 tons of CO₂ annually, as well as "Inwood," an interior decorative building material that creates a sense of unity with outdoor spaces. Aiming to strengthen differentiated proposal capabilities against the backdrop of growing orientation toward well-being and sustainability.

In the Home-use Business, the e-commerce segment, centered on Amazon, expanded solidly at 132.7% year-on-year in the first quarter. The company is also promoting expansion into home center pro shops, which have been growing in recent years, strengthening the capture of demand oriented toward improving living environment value. This is being cultivated as a new channel to supplement sluggish sales at existing stores.

Last updated: July 17, 2026