TORQ Inc.
8077・Standard Market・Wholesale Trade
Business
TORQ Inc., founded in 1926, is a specialized wholesale trading company for fasteners (bolts, nuts) listed on the Standard Market of the Tokyo Stock Exchange. The company operates through two core segments—the Fasteners segment (approximately 84% of net sales) and the Concrete Product-Related Hardware segment (approximately 16% of net sales)—conducting business through the parent company and eight consolidated subsidiaries (Kobax Co., Ltd., Owa Hagane Kogyo Co., Ltd., Chusei Kikai Co., Ltd., Nakashima Koki Co., Ltd., and others). Its main customers are construction and infrastructure-related contractors, and it has a track record of supplying large-scale public and private projects such as port development, high-speed rail, urban redevelopment, and earthquake disaster recovery. The company also leverages a network of affiliated companies within the industry, including sales to related party Okabe Co., Ltd. and purchases from Hamanaka Nut Sales Co., Ltd.
Business Model
A specialty wholesale model that procures Fasteners (bolts, nuts, etc.), Concrete Product-Related Hardware, and Machine Tools from domestic and overseas sources and sells them to construction and infrastructure-related customers. In FY2025 (ending October 2025), the cost of sales ratio was approximately 77%, and the gross profit margin was approximately 23%. Through digitalization via the web ordering system "NejiNet" and the inventory management system "NejiKura," the company aims to reduce order processing costs while expanding its lineup of imported products to increase the number of items handled, thereby building up gross profit. The containment of selling, general and administrative expenses (¥4,143 million in FY2025 (ending October 2025), down 0.5% year on year) also contributes to the improvement of the operating profit margin.
Company Strengths
Founded in 1926, the company will mark its 100th anniversary in 2026. It is a long-established specialized wholesale trading company with branches and sales offices nationwide, including Osaka, Tokyo, Kyushu, Tohoku, Hokuriku, and Okinawa, and covers a broad customer base through a group structure including eight consolidated subsidiaries. It previously listed on the Tokyo Stock Exchange Prime Market and is now listed on the Standard Market.
Revenue grew for five consecutive periods, from ¥19,253 million in FY2021 (ended October 2021) to ¥22,538 million in FY2025 (ended October 2025). Operating profit expanded approximately 6.4-fold over the same period, from ¥158 million to ¥1,009 million. Profitability has continued to improve through reductions in selling, general and administrative expenses combined with accumulation of gross profit.
The company continues to enhance the functionality and usage rate of "NejiNet," an e-commerce site for wholesalers, and has begun information linkage with business partners through the inventory management system "NejiKura." It has also newly launched a smartphone app, building digital infrastructure aimed at resolving the labor shortage facing the industry.
ENVALITH's Perspective
Performance Trend
From FY2021 to FY2025, revenue grew from ¥19,253 million to ¥22,538 million and operating profit grew from ¥158 million to ¥1,010 million, achieving five consecutive years of revenue growth and profit expansion. However, in the first half of FY2026 (ending October 2026) (November 2025 to April 2026), performance deteriorated sharply, with revenue of ¥10,606 million (down 6.6% year on year), operating profit of ¥326 million (down 43.4% year on year), and net income attributable to owners of the parent for the interim period of ¥249 million (down 37.0% year on year). The main causes were external factors, including sustained high prices for construction materials and energy, a shortage of skilled labor, and construction delays resulting from compliance with overtime work regulations, all of which combined to push steel frame demand down to a level below that seen during past recessionary periods. The full-year forecast (revenue of ¥21,000 million, operating profit of ¥650 million) anticipates year-on-year declines of 6.8% and 35.6%, respectively.
Growth Strategy
Aiming for continued growth in a mature market through three pillars: digitalization, expansion of imported products, and M&A
The company continues to add and improve functions of its web-based order system "NejiNet" to enhance customer convenience and improve order-processing efficiency. Functions were added during the interim period as well, but this was not sufficient to offset the impact of the deteriorating market conditions.
A strategy of expanding the lineup of imported products to increase the number of items handled, thereby simultaneously capturing demand in the low-price segment and managing procurement costs. This continued to be implemented during the interim period, but the effect of the measures was offset by the decline in demand caused by the deteriorating market conditions.
The company aims to expand its business domains and strengthen its customer base through M&A and alliances, including support for companies lacking successors. No specific new deals have been confirmed as implemented based on the disclosed information for the interim period.
Last updated: July 17, 2026