ENVALITH
株式会社トランザクション logo

TRANSACTION CO.,Ltd.

7818・Prime Market・Other Products

Official website
株式会社トランザクション logo
TRANSACTION CO.,Ltd.7818

Business

Transaction Co., Ltd. is a pure holding company founded in 1987 that develops planning, design, production outsourcing, and sales of Eco Products, Lifestyle Products, and Wellness Products in an integrated manner through its seven subsidiaries. Its main customers fall into three tiers: end-user companies (custom-order production), wholesale distributors (forecast-based production), and BtoB/DtoC customers via EC sites. Product categories consist of Eco Products such as eco bags and tumblers (40.8% of net sales), Lifestyle Products for Oshi-katsu and entertainment (52.0%), and Wellness Products (5.9%). The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Under a fabless production model in which manufacturing is outsourced externally, the company keeps fixed costs down while concentrating management resources on planning, design, and quality control. Sales consist of three channels: direct sales to end-user companies (net sales of ¥12,440 million in FY2025 (ending August 2025)), sales to wholesalers (¥7,234 million), and the company's own group of EC sites (¥7,777 million). The company is promoting a shift in sales toward the higher-margin e-commerce channel, and achieved an operating margin of 20.8% in FY2025 (ending August 2025).

Company Strengths

From FY2021 (ending August 2021) to FY2025 (ending August 2025), revenue increased 60.2% from ¥17,139 million to ¥27,453 million, while operating profit increased 102.3% from ¥2,821 million to ¥5,706 million. In FY2025 (ending August 2025), both revenue and profit at each stage reached record highs, and the operating profit margin was maintained at 20.8%.

In FY2025 (ending August 2025), e-commerce revenue was ¥7,777 million (up ¥2,185 million, or 39.1%, year on year), with its share of total revenue expanding 6.0 percentage points year on year to 28.3%. In the fourth quarter alone, this share rose to 31.5%, indicating an accelerating structural shift toward the higher-margin channel.

At the end of FY2025 (ending August 2025), interest-bearing debt stood at ¥434 million (interest-bearing debt ratio of 1.8%), representing effectively debt-free status. Operating cash flow generated was ¥4,247 million (up 40.5% year on year), and cash and cash equivalents held totaled ¥6,611 million. The company has also secured overdraft facilities totaling ¥1,300 million with four financial institutions.

ENVALITH's Perspective

E-commerce sales maintained high growth in the cumulative nine months through Q3, reaching ¥6,752 million (up 19.0% year on year), with the sales composition ratio expanding to 29.2% (up 1.9 percentage points year on year). On the other hand, in the standalone Q3 period, the acquisition of a large-scale order in Lifestyle Products (Entertainment, Oshi-katsu, Travel, Pets) included low gross-margin components, causing the gross profit margin to decline by 1.0 percentage point versus Q1 and 0.5 percentage point versus Q2. Combined with the recording of M&A-related one-time expenses, the operating profit margin declined by 0.5 percentage point year on year. Continued monitoring is needed regarding the risk that the structural margin improvement driven by the e-commerce shift may be temporarily offset by fluctuations in gross margin from large-scale orders.

With March 31, 2026 as the deemed acquisition date, the company made Thousand Co., Ltd. (Figure OEM, Prototype Production), a figure OEM manufacturer, a subsidiary at an acquisition cost of ¥920 million, recording provisional goodwill of ¥723 million. The goodwill amortization period is currently under consideration, and discussions with the auditing firm are underway regarding the impact of incorporating the results into earnings from Q4 onward. The company expects the impact on full-year performance to be minor, but there is a possibility that earnings forecasts will be revised once the goodwill amortization amount is finalized. The amount of contingent consideration (performance-linked) payments also remains undetermined, and uncertainty remains until the acquisition cost is finally settled.

Amid the materialization of yen depreciation, surging crude oil prices, and rising petrochemical product prices due to naphtha supply disruptions triggered by concerns over a Strait of Hormuz blockade, the company responded through foreign exchange forward contracts, securing raw materials, and building up intermediate product inventories, thereby limiting the impact on Q3 performance. As an external factor, uncertainty over the Middle East situation continues, and the risk that rising fuel, transportation, and electricity costs from Q4 onward will pressure profitability has not been eliminated. The full-year earnings forecast (net sales of ¥30,000 million, operating profit of ¥6,300 million) remains unchanged, and the progress rate for the cumulative nine months through Q3 stands at 77.1% for net sales and 77.8% for operating profit, generally on track, but the final outcome could vary depending on the external environment in Q4.

Growth Strategy

Accelerating growth over the five years of the 5th Medium-Term Management Plan through three pillars: e-commerce (2.5x), entertainment IP (2x), and M&A (¥4.0 billion allocation)

By opening up the mainstay BtoB site "MARKLESS STYLE" (started March 2026) to allow listings from other manufacturers, the company is evolving it into an EC platform. It is also promoting the launch of five new specialized EC sites by the end of the current fiscal year. Cumulative e-commerce sales for the third quarter reached ¥6,752 million (up 19.0% year on year), expanding to 29.2% of total sales composition.

By capturing demand for merchandise related to Oshi-katsu, games, anime, 2.5D content, and sports, sales of Lifestyle Products (Entertainment, Oshi-katsu, Travel, Pets) grew significantly to a cumulative ¥12,233 million in the third quarter (up 16.2% year on year). The subsidiarization of Thousand Co., Ltd. (Figure OEM, Prototype Production) (completed March 31, 2026) is expanding the IP product category. The company has also entered film-related merchandising through a capital and business alliance with K2 Pictures.

The company is promoting enhanced development of products using sustainable materials (fair trade, Eco Mark, organic cotton, biomass plastics, etc.) and expanding its lineup of climate change countermeasure products (dual-purpose sun/rain umbrellas, handheld fans, neck rings, etc.). Cumulative Eco Products (MARKLESS STYLE / MOTTERU) sales for the third quarter reached ¥9,434 million (up 7.9% year on year). Brand recognition continues to improve, supported by Good Design Award and Fair Trade Award wins.

Under the 5th Medium-Term Management Plan, the company is pursuing M&A along three axes: expanding new categories, strengthening the foundation of existing businesses, and deepening the value chain. The acquisition of Thousand Co., Ltd. (acquisition cost of ¥920 million) has been executed as the first such deal. The amount of contingent consideration (performance-linked) remains undetermined, and the goodwill amortization period is still under consideration.

Last updated: July 17, 2026