ENVALITH
株式会社ワキタ logo

Wakita & Co.,LTD.

8125・Prime Market・Wholesale Trade

Official website
株式会社ワキタ logo
Wakita & Co.,LTD.8125

Business

Wakita Corporation, founded in 1955, is a comprehensive trading company group listed on the Prime Market of the Tokyo Stock Exchange. With 16 consolidated subsidiaries, it comprises three segments: (1) the Construction Machinery Business (approx. 80% of net sales), which sells and rents civil engineering and construction machinery nationwide; (2) the Trading Business (approx. 11% of net sales), which handles sales and rental of karaoke equipment and nursing care products; and (3) the Real Estate Business (approx. 8% of net sales), which leases commercial buildings and apartments and operates hotels. Its main customers include construction and civil engineering contractors, nursing care operators, and commercial facility tenants. Consolidated net sales for FY2025 (ended February 2025) were ¥92,321 million.

Business Model

In the Construction Machinery Business, the company rents and sells its own owned machinery, securing profits through improved utilization rates and price pass-through. In the Trading Business, it combines nursing care products rental with karaoke equipment sales and rental, while in the Real Estate Business, stable cash flow is generated through leasing owned properties and hotel operations. Of the total capital expenditure of ¥5,515 million (FY2025, ending February 2025), construction machinery rental assets accounted for ¥3,174 million, with the asset-intensive rental business underpinning the earnings base.

Company Strengths

Since 2007, the company has successively acquired Chiba Lease Kogyo, Izumi Lease, Higashi Nikko Sangyo, Shinyo Kizai, Kyushu Kikai Center, Wakita, Yamakei, Nitto Rental, and others, expanding its nationwide network of construction machinery rental locations. Most recently, in September 2024, it acquired Nitto Rental Co., Ltd. to strengthen its presence in the North Kanto and Tohoku regions. Improved utilization rates and sales growth driven by M&A have been confirmed as track record.

As of the end of FY2025 (ending February 2025), the equity ratio stood at 68.9%, with net assets of ¥101,921 million. Interest-bearing debt was extremely limited, with short-term borrowings of ¥168 million and long-term borrowings of ¥403 million, while cash and cash equivalents totaled ¥22,783 million. This financial flexibility, which allows capital expenditures and M&A to be funded from internal resources, supports the agility of growth investments.

The Real Estate Business maintained a high and stable segment margin of 32.9% in FY2025 (ending February 2025). The Trading Business also expanded, with segment profit increasing 35.5% year on year to ¥572 million, boosted by the full-year contribution of Nursing Care Products Rental. The company has a diversified structure in which these two businesses, each with different earnings characteristics, complement the economic sensitivity risk of the Construction Machinery Business.

ENVALITH's Perspective

In the first quarter of FY2027 (ending February 2027), net sales were ¥24,617 million (up 6.5% year on year) and operating profit was ¥1,810 million (up 10.9%), with upper-level profits expanding steadily. However, quarterly net income attributable to owners of the parent came to only ¥1,096 million (down 5.5% year on year). This was mainly due to the disappearance of the ¥113 million gain on sale of affiliate shares recorded in the same period of the previous year, as the absence of extraordinary income below the ordinary profit line weighed on net income. Given that the reversal of the shareholder benefit provision (approximately ¥80 million) also supported profit, it remains important to carefully assess the underlying profit level on a substantive basis.

The Construction Machinery Business achieved increased sales, with net sales of ¥19,148 million (up 2.4% year on year), but segment profit declined significantly to ¥880 million (down 15.2%). Upfront investment costs—including high levels of investment in rental assets, expansion of the store network, and human capital investment—are weighing on profit. Externally, soaring construction costs and a shortage of skilled construction workers are creating a challenging environment across the construction industry as a whole, and sales of construction machinery saw lower revenue and profit due to reduced customer purchasing appetite amid rising product prices. The timing and scale at which the effects of these upfront investments materialize in earnest will be a key focus for future evaluation.

The full-year earnings forecast for FY2027 (ending February 2027) remains unchanged, with net sales of ¥100,000 million (up 7.3% year on year), operating profit of ¥5,800 million (up 9.8%), ordinary profit of ¥5,950 million (up 8.5%), and net income for the period of ¥3,600 million (up 4.3%). The first-quarter progress rate stood at 24.6% for net sales and 31.2% for operating profit, generally in line with expectations. Annual dividends are planned at ¥100 (¥50 at the second-quarter end and ¥50 at year-end), maintaining the same level as the previous fiscal year's results. However, against the forecast earnings per share of ¥72.39, the payout ratio exceeds 138%, a high level, and continued attention is warranted regarding the sustainability of maintaining dividends through the drawdown of retained earnings.

Growth Strategy

Under the '2028 Medium-Term Management Plan,' the company aims to achieve net sales of ¥111,000 million and operating income of ¥7,700 million.

The company seeks to boost the utilization rate and sales of the Construction Machinery Business and Trading Business through the opening of new locations, including via M&A. In the first quarter of FY2027 (ending March 2027), it continued to make upfront investments, such as improving the IT environment across all locations of certain group companies and increasing personnel hires, with the effects of these investments becoming increasingly apparent.

The company aims to expand solution revenue through the ICT One-Stop Service / Construction DX and support for i-Construction 2.0. It is advancing IT environment improvements at group companies, targeting improved profitability through greater operational efficiency and enhanced added value.

Sales of Temporary Equipment Maintenance Devices for the temporary equipment industry (which the company entered in earnest in the previous fiscal year) continued to perform well. The Nursing Care Products Rental and Sales business expanded following the new consolidation of Carelex Co., Ltd., and net sales in the Trading Business increased 37.1% year on year. The company continues to build a track record of entry into new markets.

The company is promoting improved asset efficiency through optimization of rental unit prices and higher utilization rates. In the first quarter of FY2027 (ending March 2027), sales and profit in the rental division of the Construction Machinery Business increased, demonstrating the effects of improved asset efficiency. Leased assets (net) decreased to ¥12,744 million compared with the end of the previous fiscal year, reflecting progress in efficient asset management.

Last updated: July 17, 2026