NIHON FLUSH CO.,LTD.
7820・Prime Market・Other Products
Japan Segment
Sole domestic operating entity engaged in build-to-order manufacturing and sale of interior system components
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥9,898 million | ¥9,527 million | ↑ |
| Segment profit (operating profit) | ¥1,419 million | ¥1,010 million | ↑ |
| Net sales YoY | +3.9% | -6.9% | ↑ |
| Segment profit YoY | +40.6% | -9.4% | ↑ |
Business Details
The Japan Segment is operated by Nihon Flush Co., Ltd. on a standalone basis. It manufactures interior system components such as Interior Doors & Decorative Fittings and Storage Boxes on a build-to-order basis, supplying them primarily to condominium developers on a just-in-time basis. Its competitive advantage stems from mass-customization technology and an IT system capable of high-mix, low-volume production, enabling the delivery of high value-added products. The company is promoting the strengthening of sales-engineering-based sales activities and thorough customer relationship management.
Recent Overview
Profitability improved significantly through better distribution costs and appropriate pricing
In FY2026 (ending March 2026), the Japan Segment achieved net sales of ¥9,898 million (up 3.9% year on year) and operating profit of ¥1,419 million (up 40.6% year on year), recording both higher revenue and substantially higher profit. Improvements in distribution costs and appropriate pricing of products contributed to enhanced profitability. The company also revised its sales promotion structure, strengthening sales-engineering-based sales that leverage advanced technical expertise, and thorough customer relationship management. On the production side, productivity improvements through new capital investment and manufacturing line upgrades were pursued, alongside ongoing value engineering (VE) activities to drive design changes and cost reductions. Meanwhile, the number of newly started housing units in FY2025 fell 12.9% year on year to 711,171 units, and the challenging market environment continues.
Key Products
Growth Drivers
- Improved profitability through better distribution costs and appropriate pricing
- Expanded orders through strengthened sales-engineering-based sales and thorough customer relationship management
- Improved productivity and reduced material costs through new capital investment and manufacturing line improvements
- Ongoing design changes and cost reductions through value engineering (VE) activities
- Accelerated horizontal expansion of wood-based building materials, including storage products
- Expanded business domain through stronger development in non-residential sectors such as hotels
- Enhanced proposal capabilities and development of new business partners through continued sales training
Risks
- Continued decline in newly started housing units (in FY2025, down 12.9% year on year to 711,171 units; condominiums down 21.2% year on year to 82,881 units)
- Price volatility risk in key raw materials such as wood and surface materials (rising resource prices due to yen depreciation)
- Cost pressure from rising material and energy prices
- Downward pressure on selling prices amid intensifying competition
- Structural contraction of the domestic housing market driven by the declining birthrate and aging population
- Risk of rising production and construction costs due to labor shortages
- Weakening of housing purchase sentiment due to interest rate trends and elevated construction costs
Last updated: June 26, 2026