TAKASHO CO., LTD.

Business Details

The core segment engaged in the manufacturing and sales of garden materials domestically. Operates the Pro-use Business (exterior decorative building materials/exteriors for public and commercial facilities), the Home-use Business (garden products for general consumers/e-commerce), and the outdoor lighting, LED sign, and illumination business through subsidiary Takasho Digitech. Also promotes DX sales utilizing generative AI through GLD-LAB. Strengths lie in customized production at domestic in-house factories, with both BtoB and BtoC customer bases.

Recent Overview

Sales declined slightly, but the non-residential field drove results, and segment profit turned to an increase year-on-year.

In the first quarter of FY2027 (ending March 2027) (January 21, 2026 to April 20, 2026), sales to external customers in the Japan segment declined slightly to ¥4,793 million (prior year same period: ¥4,819 million). Meanwhile, segment profit increased to ¥290 million (prior year same period: ¥258 million). The non-residential field performed steadily at 113.5% year-on-year, covering the sluggishness in existing home center stores. E-commerce expanded to 132.7% year-on-year. Takasho Digitech decreased to 94.8% year-on-year due to the reaction from a large-scale order, but full-year recovery is planned.

Key Products

Growth Drivers

• Expansion of design-integrated adoption in the non-residential field (public facilities, commercial facilities, major restaurant chains) (113.5% year-on-year in the current first quarter)
• Strengthening product proposals utilizing the in-house exhibition "TGEF2025" and the Shinagawa showroom
• Promotion of DX sales utilizing the generative AI service "EXVIZ®AI" by GLD-LAB.
• Steady performance in the e-commerce field (centered on Amazon) (132.7% year-on-year in the current first quarter)
• Sales expansion of lighting products through linkage with Takasho Digitech
• Rising demand for urban greening and outdoor space development driven by "Green×Expo2027 (International Horticultural Expo)" in 2027
• Expansion of the environmentally friendly exterior building material lineup, such as "Moku Plaboard ECO" and "New Tech Wood"

Risks

• Contraction of the housing market due to the declining trend in new housing starts
• Impact on the Home-use Business from consumers curbing spending amid rising prices
• Struggles in the physical sales channel due to sluggish existing-store sales in the home center market
• Rise in manufacturing costs due to soaring raw material costs (gross profit margin declined by 1.9 points in the current first quarter)
• Risk of lost opportunity in the Home-use Business due to delays in launching some new products
• Cost burden associated with upfront investments such as production automation