Carchs Holdings Co.,Ltd.
7602・Standard Market・Wholesale Trade
Business
Redux Co., Ltd. (formerly Carchs Holdings) is a company listed on the TSE Standard Market, established in 1987. Comprising 4 consolidated subsidiaries and 2 affiliated companies, its core business is the Automobile Distribution Business, which handles the purchase, sale, and export of used cars as well as auto parts sales. Domestically, Carchs Co., Ltd. operates a retail rollout under the "purchase & direct sales" model, while Agusta Co., Ltd. handles exports to Asia, Oceania, and Africa. Following the change to its current company name in September 2024, under the group strategy of parent company Redag Group Holdings, the company is actively pursuing business diversification into investment, finance, M&A consulting, AI infrastructure, and other areas. Consolidated net sales for FY2026 (ending March 2026) were ¥19,847 million.
Business Model
Core earnings consist of the purchase-sale margin on used cars (Purchase & Direct Sales) and overseas export margins. While enhancing profitability through improved inventory turnover and gross margin, the company raises customer unit prices through ancillary services such as vehicle inspection, insurance, warranty, and maintenance packages. It is also expanding BtoB transactions leveraging the Carchs Club member network, and operating a Leaseback Business through special purpose companies. Furthermore, it is cultivating new revenue sources including a FinTech business through a joint venture with Freedom Holding Corp., and an AI server sales agent and logistics operation through a business alliance with SuperX.
Company Strengths
Agusta Co., Ltd. is expanding exports to countries in Asia, Oceania, and Africa, with sales to Africa in the fiscal year under review increasing significantly year on year. By leveraging its Uganda base and Pakistan call center to expand into neighboring countries, and by linking inventory with the global platform "PicknBuy24.com," the company has built an overseas distribution network that competitors would find difficult to replicate in a short period.
The Company has adopted the structure of a company with a nominating committee, etc., separating management oversight from business execution. The Internal Audit Department and the Audit Committee, which is composed of a majority of outside directors, work together, while the legal and compliance team provides guidance and audits to each group company. In April 2026, the Company met the listing maintenance criteria for the TSE Standard Market, resulting in the removal of its designation as a securities under supervision (under confirmation).
The Company is promoting a "purchase & direct sales" model that both reduces procurement costs and improves gross margin. It offers ancillary services such as vehicle inspection, insurance, warranty, and maintenance packages to Carchs Club members, aiming to turn them into "lifetime customers" through continued transactions after delivery. Operating profit for the fourth quarter of FY2026 (ending March 2026) (January–March 2026) turned positive at ¥68 million, reflecting the results of structural reforms in the numbers.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods trended roughly flat, moving from ¥18,383 million → ¥19,059 million → ¥19,072 million → ¥20,034 million → ¥19,846 million. Operating profit remained structurally unstable, alternating between losses and profits at ¥201 million → -¥499 million → ¥99 million → -¥200 million → -¥121 million, though the loss margin narrowed in FY2026 (ending March 2026). Net income turned positive at ¥113 million, supported by extraordinary gains of ¥324 million, including a ¥244 million gain on the sale of fixed assets (Sendai real estate). Regarding the external environment, new car registrations decreased 2.2% year on year while used car registrations increased 0.4%, indicating a market environment relatively favorable to used cars. Operating cash flow remained negative for the second consecutive period at an outflow of ¥241 million, but investing cash flow saw an inflow of ¥771 million from the real estate sale, leading to a significant improvement in the cash balance.
Growth Strategy
Aiming for a profitability turnaround through four pillars: deepening purchase & direct sales, expanding overseas exports, forming a FinTech joint venture, and AI infrastructure logistics
Improving gross margin through a complete overhaul of inventory vehicle composition, enhanced inventory turnover, and a fundamental restructuring of the organization. Achieved a return to operating profit of ¥68 million in Q4 of FY2026 (ending March 2026). For FY2027 (ending March 2026), the target is net sales of ¥20,000 million and operating profit of ¥250 million.
Promoting expansion into surrounding countries by leveraging the Uganda office and Pakistan call center. Net sales to Africa in FY2026 (ending March 2026) increased significantly to ¥575 million from ¥240 million in the previous fiscal year. Carchs Capital Management also newly launched an import/export business for gift and daily-life-related goods.
Entered into a joint venture agreement with NASDAQ-listed FRHC on March 31, 2026, aimed at entering the banking business and developing FinTech operations in Japan, followed by a total share subscription agreement on April 30, 2026. Aiming to establish a new revenue model by leveraging FRHC's capital base and global financial network.
Entered into a business alliance agreement with NASDAQ-listed SuperX AI Technology Limited group in February 2026 and was designated a "Certified Logistics Partner." Contracted for domestic sales agency operations for AI servers and other equipment in Japan, as well as logistics operations from the Tsu City, Mie Prefecture supply center. Aiming to improve utilization of existing logistics assets and expand earnings.
Realized short-term, high-yield deals, including the sale of OSMIC HD shares acquired for ¥2 million and sold for ¥40 million (investment return of 1,900%), and the sale of unlisted shares acquired for ¥14 million and sold for ¥48 million. Recorded non-operating income of ¥37 million and extraordinary income of ¥42 million in FY2026 (ending March 2026). The policy is to continue agile investment activities by deepening cooperation with external partners.
Last updated: July 19, 2026