Koukandekirukun, Inc.

Business Details

For housing equipment around kitchens, toilets, washrooms, and bathrooms, the company operates a business model that completes the entire process—from quotation to order placement and installation scheduling—online through its web platform "Koukandekirukun (Web Platform)." It offers a transparent fee structure and a free 10-year warranty on all products, providing an integrated, one-stop service through on-site installation by full-time employees and contracted partners. Annual installation volume has grown to exceed 60,000 cases, and this core segment accounts for approximately 89% of the Group's total revenue.

Recent Overview

Revenue increased 22.3%, while segment profit declined 5.8% due to upfront brand advertising investment

In FY2026 (ending March 2026), Housing Equipment DX Business revenue maintained strong growth, reaching ¥11,279 million (up 22.3% year on year). This was driven by increased order intake for seasonal products such as air conditioners and the consolidation of Kitchen Works' results. On the other hand, segment operating income remained at ¥163 million (down 5.8% year on year) due to upfront investment including brand advertising expenses. Additionally, in December 2025, the company concluded a capital and business alliance with CAINZ Corporation and began rolling out a no-site-survey model utilizing Replaform. Following the consolidation of IMI and Kitchen Works as subsidiaries, segment assets increased by ¥1,375 million from the end of the prior fiscal year to ¥4,383 million.

Key Products

Growth Drivers

• Enhanced brand recognition and new customer acquisition through media strategies including TV commercials, video, and SNS
• Increased order volume and revenue through full-scale expansion of seasonal product sales such as air conditioners
• Group expansion through M&A (consolidation of IMI and Kitchen Works as subsidiaries) and incorporation of their results
• Acceleration of the BtoBtoC alliance business through the capital and business alliance with CAINZ Corporation
• Increased organic site traffic and reduced customer acquisition costs through SEO enhancement and UI/UX improvements
• Building a voluntary chain through horizontal expansion of the no-site-survey model utilizing Replaform
• Establishment of a new revenue source through the integration of housing equipment warranty services (IMI) and replacement installation work
• Expansion of multi-skilled craftsman development and installation capacity through Koukan Gino Academy

Risks

• Short-term pressure on profit due to increased brand advertising expenses and upfront investment (segment profit down 5.8% year on year in FY2026, ending March 2026)
• Rising customer acquisition costs (moving away from reliance on listing advertisements remains an ongoing challenge)
• Goodwill amortization burden and integration risk related to IMI (goodwill of ¥116 million, amortized over 10 years) and Kitchen Works (goodwill of ¥77 million, amortized over 5 years)
• Upward pressure on installation costs due to rising building material costs and labor costs
• System failure and security risks associated with the internet-completed service model
• Risk of seasonal revenue concentration due to demand fluctuations in seasonal products such as air conditioners
• Future warranty fulfillment costs associated with IMI's advance warranty obligations (contract liabilities increased by ¥373 million)
• Organizational restructuring and business succession risks associated with the planned transition to a holding company structure (scheduled for October 2026)