NEPON Inc.
7985・Standard Market・Metal Products
Business
NEPON Corporation, founded in 1948, is a specialized manufacturer of thermal equipment and sanitary equipment, comprising the Company and one consolidated subsidiary. In its core Thermal Equipment Business, the company manufactures and sells agricultural equipment such as the Hot Air Heater for Horticultural Facilities (House Kaonki), heat pumps, hot water boilers, and integrated environmental control systems, as well as General-Purpose Equipment (Hot Air Heaters for Buildings/Factories, Snow-Melting Boilers, etc.), and also handles design, construction, and after-sales services. In the Sanitary Equipment Business, the company offers products such as the Pearl Toilet (Foam-Wash Simplified Flush Toilet). Its main customers are horticultural facility farmers and agricultural corporations, with Sato Shoji Co., Ltd. as a key sales partner accounting for 18.8% of net sales. In September 2025, the company achieved dual listing on the Fukuoka Stock Exchange main market.
Business Model
In the Thermal Equipment Business, made-to-stock product sales are combined with made-to-order construction work such as horticultural facility heating/cooling installation and hot water heating installation. In the Sanitary Equipment Business, in addition to toilet unit sales, recurring revenue is generated from consumables such as the dedicated surfactant "Neponol" and after-sales service. Furthermore, digital revenue is being cultivated through the subscription features of the Agricultural ICT Cloud Service "Agri-Net Advance" and "Chokotto Remocon."
Company Strengths
Since launching the House Kaonki in 1964, the company has developed horticultural facility heaters as a core product for over 60 years. Starting with a sales agreement concluded with the National Federation of Agricultural Cooperative Associations in 1965, it built a nationwide sales network and also established a distribution channel through Sato Shoji Co., Ltd. Its product lineup, built on thermal and fluid control technologies, forms technological assets that are difficult for competitors to replicate in a short period. [Note: The summary field's Japanese text was preserved as-is per instructions since it is a key label context, but note it should be translated too.]
Since 2012, the company has offered the agricultural ICT cloud service 'AgriNet,' supporting labor-saving and sophistication of horticultural facilities through three core services: 'Chocotto Remote Control,' and 'Chabu-Dai.' Chabu-Dai has seen growing adoption and use by local governments, and data integration demonstration trials with WAGRI, led by the National Agriculture and Food Research Organization, are ongoing. In April 2026, a subscription feature was additionally released, advancing the transition to a recurring billing model.
The Sanitary Equipment Business maintained high profitability in FY2026 (ending March 2026), with net sales of ¥467 million against segment profit of ¥122 million, representing a profit margin of 26.1%. After-sales service revenue from dedicated consumables such as 'Neponol' underpins this profit margin, and renewal demand in areas without sewerage infrastructure forms a continuous revenue base.
ENVALITH's Perspective
Performance Trend
Revenue was ¥7,418 million (up 1.9% year on year), marking the first increase in two periods. The Thermal Equipment Business drove growth, reaching ¥6,950 million (up 2.6% year on year) on the back of large-scale orders for low-cost horticultural facility construction and increased road heating construction, while the Sanitary Equipment Business declined to ¥467 million (down 7.7% year on year) as disaster-preparedness demand ran its course. Operating profit was ¥70 million (up 99.2% year on year), and net income for the period was ¥37 million, a turnaround from the prior period's loss of ¥283 million. The prior period's substantial loss was mainly attributable to a one-time factor from the reversal of deferred tax assets (income tax adjustment of ¥318 million). For FY2027 (ending March 2027), the company forecasts revenue of ¥7,450 million (up 0.4% year on year) and operating profit of ¥60 million (down 15.0% year on year), indicating a slight revenue increase but a renewed decline in profit, with downside risks from the external environment (high crude oil prices and yen depreciation) also being a concern.
Growth Strategy
Aiming to strengthen competitiveness in the horticultural facility market through the development of IoT and decarbonization products alongside reductions in manufacturing costs
Continued development and provision of digital services such as the IoT platform "Chabu-Dai" (Agricultural ICT Cloud Service), which reduces the burden of farm work and improves business profitability. The Company aims to respond to the needs of agricultural corporations for scale expansion and advanced systemization, thereby improving profitability through enhanced added value.
Support for reducing fossil fuel consumption in the agricultural sector by promoting the adoption of systems that provide interlocking control between fossil-fuel hot air heaters and heat pumps. The Company is capturing demand associated with the Ministry of Agriculture, Forestry and Fisheries' "Strategy for Sustainable Food Systems, MeaDRI," and is also advancing the development of products utilizing next-generation energy sources.
Continued implementation of inventory reduction (a decrease of ¥243 million in inventory) through restraint on purchases of materials and other inputs, along with various expense reductions. In FY2026 (ending March 2026), the Company achieved a ¥26 million increase in gross profit and an ¥8 million decrease in selling, general and administrative expenses, and will continue to promote cost reduction and fixed cost compression.
Continued development of new products and construction solutions, including low-cost horticultural facilities resistant to climate-related disasters. Large-scale construction orders were secured in FY2026 (ending March 2026), and maintaining and enhancing product competitiveness will continue to support sales growth in the Thermal Equipment Business.
Last updated: July 19, 2026