O-WELL CORPORATION
7670・Standard Market・Wholesale Trade
Coating-related Business
A segment providing paints, chemical products, and construction as a one-stop solution centered on coating film formation capability
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥47,861 million | ¥48,972 million | ↓ |
| Segment Profit | ¥2,253 million | ¥2,482 million | ↓ |
| Segment Assets | ¥23,660 million | ¥24,368 million | ↓ |
| Depreciation | ¥167 million | ¥168 million | — |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥158 million | ¥152 million | ↑ |
| Impairment Loss | ¥9 million | ¥0 million | ↓ |
Business Details
Targeting manufacturing industries such as automobiles, steel, and construction machinery as primary customers, the segment provides an integrated offering ranging from the sale of general-purpose paints, industrial paints, chemical products, and coating equipment to coating line-related construction work and coating contracting. This is a global segment operating multiple affiliated companies both domestically and overseas (O-WELL VIETNAM, PT. O WELL INDONESIA, O-WELL MEXICO, etc.). The segment is pursuing a transformation in the value it provides, shifting from a "product supply" model to a "one-stop solution provision" model, and is working to expand functionality centered on its cultivated coating film formation capability as its core.
Recent Overview
Lower sales and profit due to declining production at automakers, steel, and construction machinery manufacturers, while completed construction saw substantial growth
In the Coating-related Business for FY2026 (ending March 2026), due to the impact of declining domestic production volumes at automakers, the segment's major customers, as well as declining production in steel and construction machinery, net sales decreased to ¥47,861 million (down 2.3% year on year) and segment profit decreased to ¥2,253 million (down 9.2% year on year). On the other hand, completed construction increased substantially to ¥2,302 million (up 42.9% year on year). Paints & Surface Treatment Agents, at ¥28,374 million (down 5.2% year on year), was the largest factor behind the sales decline. Okuyui (Shanghai) Trading Co., Ltd. was excluded from the scope of consolidation.
Key Products
Growth Drivers
- Improving profitability through expanded sales of coating-related equipment and increased market share of products sold
- Capturing needs for labor-saving and advanced capabilities in coating processes through implementation of OLDAS (a coating site management system)
- Expanding the scope of contracting by incorporating peripheral processes into coating contracting work
- Creating and expanding global business utilizing domestic and overseas global sites (Vietnam, Indonesia, Mexico, etc.)
- Diversifying the sales composition through expanded orders for completed construction (coating line-related construction work)
- Enhancing added value through a transformation in the value provided, shifting from a "product supply" model to a "one-stop solution provision" model
Risks
- Direct impact on sales from declining domestic production volumes in the automotive industry, the segment's major customer
- Risk of declining production in industries such as steel and construction machinery
- Risk of spillover effects on the automotive industry from developments in US reciprocal tariff policy and trade policy (the impact of Middle East conditions is not factored into earnings forecasts)
- Instability in net sales due to fluctuations in completed construction revenue
- Contraction of the Japanese market (due to population decline) and intensifying competition among Japanese manufacturing companies
- Deterioration of the business environment due to geopolitical risks (Ukraine and Middle East conditions) and rising prices
- Risk of shrinking Asian business infrastructure due to the exclusion of an overseas subsidiary (Okuyui (Shanghai) Trading Co., Ltd.) from consolidation
Last updated: June 22, 2026