NIHON FLUSH CO.,LTD.
7820・Prime Market・Other Products
Business
Nihon Flush Co., Ltd. was founded in 1964 as a manufacturer specializing in interior system components, with Interior Doors & Decorative Fittings and Storage Boxes among its core products. Domestically, the company has built a made-to-order production system centered on its Tokushima head office plant, supplying major condominium developers and homebuilders on a just-in-time basis. Overseas, it operates six consolidated subsidiaries in China, focusing primarily on Chinese real estate developers while also exporting to Taiwan, the Middle East, and other regions. Consolidated net sales for FY2026 (ending March 2026) were ¥23,456 million, with the China Segment accounting for approximately 58% of sales, making it the Group's largest segment. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The core of the business is a mass-customization production system that accommodates customer-specific specifications, combined with sales engineering capabilities that integrate sales, design, manufacturing, and construction management. In Japan, the company operates a build-to-order sales model targeting major developers and homebuilders, while in China it conducts direct sales to local developers as well as sales through a route sales agent network. Profit margins are managed through continuous cost reduction via VE (value engineering) activities and appropriate pricing.
Company Strengths
In 1986, the company was an industry pioneer in introducing an MRP system, achieving high-mix, low-volume just-in-time production. It has jointly developed products such as reverse-beam wall doors and 2700-type sliding doors with major condominium developers and major housebuilders, and its ability to respond to customer-specific specifications is a differentiating factor versus competitors.
Domestically, the company operates sales offices nationwide centered on its Tokushima head office plant, while in China it holds six consolidated subsidiaries in Kunshan, Qingdao, Jiangxi, Shanghai, Yantai, and elsewhere. In FY2026 (ending March 2026), orders received in Japan expanded to ¥11,190 million (111.3% year on year), and the production bases in both Japan and China underpin business continuity.
As of the end of FY2026 (ending March 2026), total net assets were ¥32,539 million, and cash and cash equivalents were ¥5,591 million. Capital expenditure funds and domestic working capital are basically covered by internal funds, maintaining a financial structure with low reliance on interest-bearing debt. Capital expenditure of ¥571 million in FY2026 (ending March 2026) was also covered by internal funds.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥33,094 million in FY2022 (ended March 2022) and has declined for five consecutive periods, coming in at ¥23,456 million in FY2026 (ending March 2026) (down 2.2% year on year). Meanwhile, operating profit improved sharply to ¥1,746 million (up 125.3% year on year). The largest driver of this improvement was the sharp reduction in provision for allowance for doubtful accounts, which fell from ¥2,412 million in the prior period to zero, and impairment losses, which shrank from ¥1,152 million to ¥92 million. As external factors, the continued slump in China's real estate market and the decline in the number of new housing starts in Japan are exerting structural downward pressure on revenue, and the company itself forecasts a further decline in revenue to ¥21,000 million in FY2027 (ending March 2027).
Growth Strategy
Transforming the earnings structure through three pillars: expansion into non-residential domestic markets, diversification of China sales channels, and expansion of export sales
Strengthening sales engineering leveraging high technical proposal capabilities, accelerating expansion into non-residential sectors such as hotels in addition to existing housing, and horizontal expansion of wood-based building materials such as storage products. In FY2026 (ending March 2026), domestic sales grew +3.9% and operating profit grew +40.6%, demonstrating that the effects of these initiatives are showing in the figures.
Gradually reducing the proportion of sales to developers from 88% in FY2025 to a planned 30% in FY2027, substituting with route sales (20%), hotel sales (20%), and Export Products (16%). The China Segment turned profitable in FY2026 (ending March 2026) with operating profit of ¥327 million, confirming initial results of the structural reforms.
Promoting expanded sales in the Taiwan market through strengthened cooperation with the Taiwan Ruentex Group, an early resumption of sales activities in the Middle East region (currently suspended), and development of new sales countries. Export sales are targeted to expand from ¥55 million in FY2025 to a planned ¥460 million in FY2026 and ¥2,300 million in FY2027.
Promoting productivity improvement through new capital investment and manufacturing line improvements, and design changes and cost reductions through continuous VE (Value Engineering) activities. Gross profit margin improved to 25.0% in FY2026 (ending March 2026) (from 23.8% in the previous fiscal year), with cost reduction effects contributing to the improved profit margin.
Last updated: July 19, 2026