ENVALITH
阪和興業株式会社 logo

HANWA CO., LTD.

8078・Prime Market・Wholesale Trade

Official website
阪和興業株式会社 logo
HANWA CO., LTD.8078

Business

Hanwa Co., Ltd. traces its origins to 1947 as a specialized steel trading company, and now forms a group comprising the Company, 107 subsidiaries, and 37 affiliated companies. With the Steel Business at its core, the group operates across Primary Metals (Nickel, Chrome, etc.), Recycled Metals (non-ferrous metal recycled raw materials, Precious Metals), Food (Marine Products, Livestock Products), Energy & Daily Materials (petroleum products, chemicals, biomass fuel), and Housing Materials & Machinery businesses. Domestically, it maintains sales offices and a processing/logistics network nationwide, while overseas it operates Overseas Sales Subsidiaries and Overseas Steel Service Centers in Southeast Asia, North America, Europe, China, and elsewhere. Consolidated net sales for FY2026 (ending March 2026) reached ¥2,662,669 million.

Business Model

While trading (buy-sell margin) remains the core revenue source, the company pursues high-value-added sales through its "immediate delivery, small-lot, processing" strategy, leveraging domestic and overseas processing centers and logistics bases. Overseas, it also captures equity-method income through local-production-for-local-consumption steel service centers and investments in equity-method affiliates. Diversified businesses such as food and energy help disperse market volatility risk, creating a structure that enhances cash-generating capacity across the group as a whole.

Company Strengths

Domestically, the company operates consolidated subsidiaries nationwide handling processing and storage of bar steel, steel plate, steel pipe, and other products, while overseas it maintains steel service centers in Mexico, Indonesia, Malaysia, Thailand, Vietnam, China, and other locations. In FY2026 (ending March 2026), Steel Business segment assets reached ¥542,029 million, and this physical network of facilities makes short-term imitation by competitors difficult.

The company operates seven segments—Steel, Primary Metals, Recycled Metals, Food, Energy & Daily Materials, Overseas Sales Subsidiaries, and Others—dispersing dependence on any specific commodity market conditions. In FY2026 (ending March 2026), the Food Business posted a 31.9% year-on-year profit increase and the Steel Business a 16.7% year-on-year profit increase, demonstrating a track record of complementary performance across segments.

Throughout the Medium-Term Management Plan 2025 period, the company consistently kept Net DER at or below 1.0x, and its credit ratings from R&I and JCR were upgraded from A- to A. At the end of FY2026 (ending March 2026), the equity ratio stood at 35.3% (37.3% after factoring in the equity credit of the hybrid loan), interest-bearing debt decreased 6.6% year on year to ¥357,074 million, and the company also secured a ¥155.0 billion commitment line (entirely undrawn).

ENVALITH's Perspective

Revenue for FY2026 (ending March 2026) came to ¥2,662,669 million, an increase from the prior period (¥2,554,514 million), while operating profit fell to ¥58,444 million (from ¥61,532 million in the prior period) and net income for the period declined to ¥38,265 million (from ¥45,482 million), both down year-on-year. In particular, net income for the period fell to its lowest level in the past five fiscal years, highlighting a structural challenge in which expanding revenue scale fails to translate into profit. Deteriorating profitability in certain segments, including an equity method loss (¥-4,004 million) in the Primary Metals Business, weighed on overall results.

In the amended earnings report dated June 18, 2026, an error was identified and corrected in the amount of increase in tangible and intangible fixed assets within the segment information. While there is no impact on the consolidated financial statements (balance sheet, income statement, and cash flow statement), the corrected consolidated figure was significantly revised from ¥9,717 million to ¥7,088 million, warranting investor attention to the precision of the company's internal controls and disclosure processes.

Key drivers of performance volatility include commodity market conditions for steel, non-ferrous metals, and energy, yen exchange rate trends against the U.S. dollar and Asian currencies, and geopolitical risks centered on Southeast Asia and China. As an external factor, in periods of market softening there is a risk of expanding equity method losses, as seen in the Primary Metals Business; the FY2026 (ending March 2026) segment loss for the Primary Metals Business (¥-150 million) is one such example. The structural reliance on a favorable turn in the external environment to achieve the targets of the medium-term management plan remains unchanged.

Growth Strategy

Under the 'Medium-Term Management Plan 2025,' the company is advancing the expansion of overseas local production and local consumption, high-value-added sales operations, and the monetization of strategic investments.

Deepening the local production and local sales model centered on Southeast Asia, advancing the monetization of overseas bases through the investment in PT. GARUDA YAMATO STEEL and the consolidation of HANWA EUROPE B.V. as a subsidiary. External sales in the Overseas Sales Subsidiaries segment amounted to ¥465,114 million in FY2026 (ending March 2026).

Deploying the high-value-added sales model across steel distribution bases nationwide to avoid price competition and improve profitability. Segment profit in the Steel Business secured ¥38,707 million in FY2026 (ending March 2026), maintaining its profit contribution as a core business.

Expanding the earnings contribution from equity-method companies such as SAMANCOR CHROME HOLDINGS and newly consolidated subsidiaries (Sinx Corporation, Marugo Fukuyama Suisan Co., Ltd., etc.). In FY2026 (ending March 2026), the equity-method loss in the Primary Metals Business (¥-4,004 million) weighed on results, and monetization amid a market recovery remains a challenge.

Promoting expansion of handling volume and profitability improvement in the Recycled Metals Business (sales of ¥281,236 million), Food Business (¥148,793 million), and Energy & Daily Materials Business (¥379,018 million). Continuing to capture the effects of the business reorganization from the April 2024 organizational change.

Last updated: July 19, 2026