ENVALITH
株式会社KYORITSU logo

KYORITSU CO., LTD.

7795・Standard Market・Other Products

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株式会社KYORITSU logo
KYORITSU CO., LTD.7795

Business

KYORITSU Co., Ltd. is a holding company that listed on the Standard Market of the Tokyo Stock Exchange in October 2022. With 13 consolidated subsidiaries and 2 non-consolidated subsidiaries, the company operates four segments: ① Information & Digital Business (DM Service, WEB advertising, Video Production, etc.), ② Print Media Business (Commercial Printing, Publishing Printing), ③ Environmental Business (plastics recycling, waste treatment), and ④ BPO Business (storage and shipping of consumable materials for retail stores). While the core Print Media Business accounts for approximately 68% of net sales, the Information & Digital, Environmental, and BPO Businesses are driving growth through M&A. The customer base spans companies and retail stores across a wide range of industries.

Business Model

The Print Media Business's large-lot, short-lead-time production system serves as the revenue base, with in-house production promotion reducing fixed costs while securing profit margins. The Information & Digital Business proposes DM, web advertising, and mass media advertising as a one-stop solution, creating added value through marketing solutions that leverage purchase history data. The Environmental Business and BPO Business accelerate growth by expanding their business domains through M&A, maximizing intra-group synergies to structurally boost overall earnings.

Company Strengths

Since 2022, the company has brought multiple firms—including Bachwerk, Tokyo Ad, M&C, and Marusho Hokkai Sogyo—into the group through M&A, expanding its Information & Digital, Environmental, and BPO businesses. Net sales for FY2026 (ending March 2026) reached ¥42,920 million, maintaining above ¥40 billion for the fourth consecutive period, while raising the share of net sales from growth segments.

Amid a shrinking printing market, the company has been raising its in-house production ratio. In FY2026 (ending March 2026), segment profit for the Print Media Business was ¥870 million (up ¥178 million year on year), with the profit margin improving to 2.98%. By maintaining a production system geared toward large-lot, short-lead-time orders, the company has secured order volume while achieving fixed-cost reductions.

The equity ratio for FY2026 (ending March 2026) was 43.3% (up 1.6 points year on year), achieving the medium- to long-term target of 40% or higher. The interest coverage ratio improved significantly from 7.4x in the previous period to 11.8x, and the ratio of interest-bearing debt to cash flow shortened from 11.5 years to 5.9 years, reflecting improved financial soundness.

ENVALITH's Perspective

Net income attributable to owners of parent for FY2026 (ending March 2026) is ¥1,174 million (up 64.1% year on year), a significant increase, but this was primarily driven by ¥966 million in gain on sale of investment securities recorded as extraordinary income. Ordinary income was ¥1,292 million (up 12.9%) and operating income was ¥1,405 million (up 12.5%), showing steady improvement on a core business basis, but the operating margin remains limited at 3.3%. The FY2027 (ending March 2027) forecast calls for net income of ¥750 million (down 36.1% year on year), a significant decline, and investors should closely monitor the underlying earnings power once the extraordinary gain drops out.

The Information & Digital Business posted revenue of ¥10,791 million (up 21.4% year on year), showing strong growth, while segment profit declined to ¥611 million (down ¥73 million, or 10.7%, year on year), reflecting deteriorating profitability. Goodwill amortization expanded to ¥214 million (up ¥65 million year on year), and subsidiary acquisition-related expenses of ¥122 million were also recorded, indicating that M&A costs are weighing on profit. Whether synergies among group companies translate into profit contribution commensurate with the revenue increase will be key to future evaluation.

The Environmental Business maintained high growth and high profitability, with revenue of ¥1,992 million (up 27.5% year on year) and segment profit of ¥240 million (up ¥60 million year on year). The BPO Business also expanded rapidly, with revenue of ¥927 million (up 75.6% year on year) and segment profit of ¥85 million (up ¥83 million year on year). However, even combined, these two businesses account for only about 7% of total company revenue, an insufficient scale to offset the contraction of the Print Media Business. In terms of the external environment, the promotion of a circular economy and stricter plastic regulations are tailwinds for the recycling market, but the pace of business expansion through M&A will be a key differentiator for evaluation.

Growth Strategy

Aiming to enhance corporate value through M&A-driven expansion of the Information & Digital Business and Environmental Business, combined with group synergies

By bringing digital marketing companies into the group, the company has built a one-stop proposal framework integrating web advertising, mass media advertising, and DM media. Net sales for FY2026 (ending March 2026) reached ¥10,791 million (+21.4% year on year), achieving high growth, but segment profit declined due to increased M&A-related costs. The next challenge is to generate profit contribution from synergies among group companies.

By promoting in-house production of large-lot orders, the company aims to reduce fixed costs and improve productivity, achieving margin improvement in a shrinking market. Segment profit for FY2026 (ending March 2026) reached ¥870 million (+25.7% increase year on year), with results becoming evident. The company continues to promote the enhancement of its one-stop production framework.

Following the group consolidation of a Sapporo-based industrial waste treatment company (October 2025), the company resolved in April 2026 to acquire all shares of Naganeh Sangyo (industrial waste treatment and recycling). This strengthens the recycling area in Hokkaido and the Doo region and achieves mutual complementarity of technology and equipment, accelerating the nationwide expansion of the Environmental Business. Net sales of the Environmental Business for FY2026 (ending March 2026) reached ¥1,992 million (+27.5% year on year).

In the storage and shipping operations of consumables for retail stores, the company is promoting improvements in the convenience of client ordering systems, an increase in handled items, and improvements to warehouse environments. Net sales for FY2026 (ending March 2026) reached ¥927 million (+75.6% increase in revenue year on year), with segment profit of ¥85 million (+¥83 million increase year on year), representing rapid expansion. The company is strengthening sales activities utilizing existing warehouses and the group's sales network.

Last updated: July 19, 2026