Wellco Holdings Corporation

Business Details

Comprised of four companies: WILL Corporation, Nippon Special Processing Printing Co., Ltd., Wave Co., Ltd., and PDIC Co., Ltd. In addition to the manufacture and sale of promotional printed materials (flyers, catalogs, etc.), direct mail, sales promotion supplies, business printed materials, and Special Labels & Stickers, the segment also plans and produces digital content and develops, manufactures, and sells FA (Factory Automation) Equipment. Orders via EC sites are one of the main channels. Sales from Wave Co., Ltd., which became a wholly-owned subsidiary in the previous fiscal year, are now fully contributing.

Recent Overview

Sales up 12.3% on full consolidation contribution from Wave, but segment profit fell sharply to ¥3 million amid high costs and price competition

Segment sales for H1 FY2026 (ending March 2026, Interim) reached ¥4,366 million (up 12.3% year on year), achieving an increase in revenue. In addition to the full contribution of sales from Wave Co., Ltd., which became a wholly-owned subsidiary in the previous fiscal year, repeat orders via EC sites remained steady. On the other hand, increases in cost of sales and SG&A expenses due to consolidation, persistently high raw material and electricity costs due to the weak yen, and difficulty in passing on prices amid intense order competition put pressure on profits, causing segment profit to fall sharply to ¥3 million (down 88.7% from ¥28 million in the same period of the previous year). In addition, an impairment loss of ¥88 million was recorded related to the dormitory in Tako Town. For the second half, the company has positioned the review of unprofitable projects, active price pass-through, and cost control through material optimization and production system efficiency improvements as top priorities.

Key Products

Growth Drivers

• Incorporation of the FA equipment and paper processing businesses and synergy effects through the full consolidation of Wave Co., Ltd. as a wholly-owned subsidiary (continued full sales contribution)
• Steady trend in new and repeat orders via EC sites
• Strengthened sales approaches to new and dormant customers using "Kenja no Hanshoku" and "Kenja no DM"
• Response to the digital printing market through enhanced digital printing equipment and order flow construction
• Cost reduction through operational efficiency using AI technology and promotion of automation at own factories
• Improved profitability in the second half through review of unprofitable projects and active price pass-through

Risks

• Persistently high raw material costs, electricity charges, and logistics costs combined with difficulty in price pass-through due to price competition (materialized in the interim period as an 88.7% decline in segment profit)
• Rising costs of imported raw materials due to the weakening yen
• Structural decline in conventional printing orders outside of EC site channels
• Risk of declining profitability of fixed assets (an impairment loss of ¥88 million was recorded in the interim period)
• Uncertainty over the economic outlook due to geopolitical risks such as US tariff policy and the situation in the Middle East, leading to restrained promotional investment by customers
• Pressure on profits from increased cost of sales and SG&A expenses due to the increase in consolidated subsidiaries