MITANI SANGYO Co., Ltd.

Business Details

The segment's main businesses are the design and construction of HVAC equipment, water supply and sanitary equipment, clean rooms, and fire-fighting equipment, as well as the design and construction of electrical and interior construction work, for new-build and renovation properties. Its primary areas are the Hokuriku region (Ishikawa and Toyama) and the Tokyo metropolitan area, serving customers such as office buildings, condominiums, hotels, factories, hospitals, and elderly care facilities. The Vietnam subsidiary Aureole Construction Software Development Inc. handles BIM-related operations, supporting design and quantity surveying with a technical staff of over 700 engineers.

Recent Overview

Orders received, net sales, and operating profit all reached record highs for the second consecutive year

In FY2026 (ending March 2026), large-scale new construction projects in the Tokyo metropolitan area progressed smoothly, with net sales increasing 4.9% year on year to ¥20,680 million and operating profit increasing 3.3% year on year to ¥2,320 million, both marking record highs for the second consecutive year. Orders received increased 31.1% year on year to ¥24,713 million, marking a record high for the second consecutive year, driven by the largest-ever new construction orders for research facilities and hospital facilities in both the Tokyo metropolitan area and the Hokuriku region. The order backlog also grew to ¥22,070 million (up 22.4% year on year), and net sales for the next fiscal year are forecast to increase 3.6% year on year to ¥21,432 million.

Key Products

Growth Drivers

• Robust orders for large-scale new construction projects for research facilities and hospital facilities in the Tokyo metropolitan area and the Hokuriku region (orders received of ¥24,713 million, up 31.1% year on year, a record high for the second consecutive year)
• Improvement in the leading indicator for next fiscal year's net sales due to the accumulation of an order backlog of ¥22,070 million (up 22.4% year on year)
• Enhanced competitive advantage through high-value-added projects such as proposals for ZEB-compliant, high-efficiency HVAC equipment utilizing ICT/IoT
• Expansion of orders for modeling operations for redevelopment, logistics facilities, and data centers by the Vietnam subsidiary's BIM Engineering Center (over 250 BIM engineers)
• Rationalization and efficiency through ICT utilization driven by DX promotion, and accumulation of on-site operational know-how and data
• Securing stable orders through years of accumulated construction equipment know-how in the Hokuriku region and expanded maintenance services

Risks

• Next fiscal year's (FY2027, ending March 2027) earnings forecast anticipates a slight decrease in operating profit to ¥2,300 million (down 0.9% year on year), with temporary disruptions in material procurement due to supply chain disruptions stemming from Middle East tensions and short-term delays in some projects
• Chronic labor shortages against a backdrop of an aging workforce and a lack of new young entrants in the construction industry, as well as constraints on construction capacity due to overtime work regulations
• Risk of increased construction costs due to rising raw material prices, energy costs, and logistics costs
• Increased costs for responding to environmentally friendly buildings against a backdrop of energy conservation and decarbonization trends
• Indirect impact of US tariff policy trends and geopolitical risks on trends in the construction-related industry

Business Details

The segment's main businesses are system integration services, package software development and sales, network and security infrastructure construction, hardware maintenance, system maintenance and operational support, and cloud services. Its primary customers are local governments and private companies in the Hokuriku region (Ishikawa and Toyama) and the Tokyo metropolitan area, with a strength in value-added proposals combining proprietary package products and cloud services. The company has increased its presence in the education field, driven by the NEXTGIGA School project.

Recent Overview

Completion of NEXTGIGA School project deliveries drove net sales to a record high, up 59.8% year on year

In FY2026 (ending March 2026), the company received orders for the NEXTGIGA School project from 26 of the 34 municipalities in Ishikawa and Toyama prefectures, and progress in their delivery, the implementation of education DX promotion projects, and progress in multiple core system renewal projects led net sales to reach a record high of ¥16,999 million (up 59.8% year on year) and operating profit to reach a record high of ¥1,419 million (up 47.6% year on year), with all indicators marking record highs. On the other hand, in FY2027 (ending March 2027), net sales are forecast to decrease 31.9% year on year to ¥11,584 million due to the falloff of the NEXTGIGA School project, but operating profit is expected to remain at a high level, decreasing only 1.2% year on year to ¥1,402 million.

Key Products

Growth Drivers

• Expansion of expertise cultivated through the NEXTGIGA School project to educational institutions nationwide through the establishment of the Public and Education Solutions Division (April 2026)
• Deepening of DX and AI utilization support for customers and expansion of customer touchpoints through new businesses such as the Virtual CxO Service
• Expansion of IT investment demand from companies and local governments against a backdrop of generative AI, cloud evolution, and DX promotion
• Differentiation through proprietary package products such as POWER EGG® and Chalaza®, and horizontal expansion to over 1,600 existing customers
• Stable order intake for offshore development business and promotion of AI technology utilization by the Vietnam subsidiary Aureole Information Technology Inc.
• Capturing demand for security and BCP-related services utilizing Confidential Service Co., Ltd.'s data center

Risks

• Risk of the falloff of large one-time projects such as the NEXTGIGA School project (net sales for FY2027, ending March 2027, are forecast to decrease 31.9% year on year)
• Constraints on development and proposal systems due to IT personnel shortages
• Intensifying competitive environment due to increased entry of venture companies
• Impact on service quality due to increasing cyberattacks and security risks
• Impact of exchange rate fluctuations on the performance of the Vietnam subsidiary (Aureole Information Technology Inc.)
• The order backlog decreased 5.2% year on year to ¥9,921 million, shrinking the foundation for accumulating sales in subsequent periods

Business Details

The segment's main businesses are the design, manufacture and sale of molds, the manufacture and sale of resin molded products, and the sale of electronic components. Its main customers are primarily automotive manufacturers for in-vehicle applications, and the company has manufacturing bases in Vietnam. The company combines trading company functions with manufacturer functions, with a strength in collaborative proposals from the product development stage (front-loading activities). This is one of Mitani Sangyo Group's six reportable segments and has a strong manufacturing character.

Recent Overview

Operating profit reached a record high due to recovery in in-vehicle demand and successful cost reduction activities

In FY2026 (ending March 2026), in addition to a recovery in demand for resin molded products for in-vehicle applications, the impact of the yen's depreciation compared to the previous fiscal year increased the yen-converted value of foreign-currency-denominated transactions, resulting in net sales increasing 6.3% year on year to ¥12,230 million. Operating profit increased 91.1% year on year to a record high of ¥1,444 million, driven by increased net sales, successful ongoing cost reduction activities, and profit contribution from the delivery of new products beyond in-vehicle applications. For the next fiscal year (FY2027, ending March 2027), the company anticipates rising raw material prices and increased logistics costs due to Middle East tensions, and forecasts operating profit to decrease 41.8% year on year to ¥840 million.

Key Products

Growth Drivers

• Recovery in demand for resin molded products for in-vehicle applications (materialized in FY2026, ending March 2026)
• Success of ongoing cost reduction activities (operating profit in FY2026, ending March 2026 reached a record high)
• Response to the automotive electrification trend (promotion of mass production of electrification-related components)
• Expansion into applications beyond automotive-related fields (sensor components, automatic insert molding, etc.)
• Promotion of mass production of high-difficulty components and cost reduction at the Vietnam manufacturing base
• Improvement in quality and efficiency through application of AI-utilizing automatic visual inspection machines to mass production processes
• Strengthening of collaborative proposals from the early stages of customers' product development through front-loading activities

Risks

• Risk of rising raw material prices and increased logistics costs due to Middle East tensions (already reflected in the FY2027, ending March 2027 earnings forecast)
• Risk related to material procurement via the Strait of Hormuz (addressed through switching procurement sources, but challenges remain for long-term stable procurement)
• Risk of production adjustments by automotive manufacturers (temporary impact from issues such as model certification problems)
• Exchange rate fluctuation risk (decrease in yen-converted value of foreign-currency-denominated transactions due to yen appreciation)
• Risk of changes in demand for existing products due to the automotive industry's shift toward electrification
• Risk of rising raw material prices and energy costs

Business Details

This segment operates the sale of chemical products (domestic and Vietnam chemical products), contract manufacturing and sale of functional materials, manufacture and sale of pharmaceutical intermediates and active pharmaceutical ingredients, and the environmental business (valuable metal recovery, wastewater treatment, etc.). It is a composite business combining trading company functions with manufacturer functions, combining domestic and overseas procurement capabilities with proprietary technology. This is a core segment accounting for approximately 37% of the group's total net sales (including internal transactions).

Recent Overview

All sub-businesses achieved increased sales, and operating profit expanded more than twofold year on year to ¥945 million

In FY2026 (ending March 2026), increased customer utilization, new customer development, and rising sales prices in domestic chemical products, strong sales of both proprietary and third-party active pharmaceutical ingredients products along with increased plant utilization, increased demand from existing customers in contract manufacturing of functional materials, increased handling volume in valuable metal recovery, new deliveries in northern Vietnam, and the effect of the yen's depreciation combined to achieve net sales of ¥44,711 million (up 11.4% year on year) and operating profit of ¥945 million (up 104.6% year on year), a significant profit increase. For the next fiscal year (FY2027, ending March 2027), the company anticipates decreased customer utilization due to the impact of Middle East tensions, and forecasts net sales of ¥43,505 million (down 2.7% year on year) and operating profit of ¥821 million (down 13.2% year on year).

Key Products

Growth Drivers

• Expansion of the sales foundation through new customer development and increased share with existing customers in domestic chemical products
• Increased sales due to rising sales prices resulting from raw material price increases
• Improved profit due to strong sales of both proprietary and third-party active pharmaceutical ingredients products and increased plant utilization
• Improved efficiency and safety in active pharmaceutical ingredient manufacturing through expansion of items applying the continuous flow method
• Increased demand from existing customers and acquisition of newly developed material projects in contract manufacturing of functional materials
• Expansion of the environmental business through increased handling volume in the valuable metal recovery business and application development for recycled carbon fiber
• Expansion of orders through capacity expansion at the Vietnam subsidiary Aureole Fine Chemical Products Inc.
• Development of a proprietary recycling business through collaboration with partner companies and expanding demand against a backdrop of rising material prices

Risks

• Risk of decreased customer utilization and increased raw material procurement costs due to the impact of Middle East tensions (Strait of Hormuz passage conditions)
• Risk of decreased transactions with some customers in southern Vietnam
• Fluctuations in raw material prices and instability in the supply chain due to heightened geopolitical risk
• Risks related to GMP compliance and quality control in the active pharmaceutical ingredients business
• Changes in chemical product demand structure due to decarbonization and stricter environmental regulations
• Risk of decreased yen-converted value of foreign-currency-denominated transactions due to yen appreciation
• Impact on both supply and demand due to fluctuations in manufacturing utilization and logistics environment in countries around the world

Business Details

The segment's main businesses are the sale of petroleum products (A-fuel oil, C-fuel oil, kerosene, light oil, gasoline, recycled oil, etc.), the sale of residential LP gas, and the sale of gas-related equipment, household fuel cells, and solar power generation systems. The company provides a stable energy supply to industrial and residential customers primarily in the Hokuriku region, while also working to expand sales of renewable energy (solar carports, etc.). The company also promotes proposals for reducing environmental impact through collaboration with other segments within the group.

Recent Overview

Despite declining sales prices, increased volume and cost improvements drove operating profit to a record high

In FY2026 (ending March 2026), while sales prices for both petroleum products and residential LP gas were below the previous fiscal year, sales volume exceeded the previous fiscal year due to increased utilization and demand from some customers. Successful cost structure improvements led operating profit to increase 16.6% year on year to a record high of ¥420 million. Net sales (including internal transactions) increased 2.3% year on year to ¥7,688 million. For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥7,910 million (up 2.9% year on year) and operating profit of ¥476 million (up 13.2% year on year).

Key Products

Growth Drivers

• Expansion of sales volume of petroleum products and LP gas due to increased utilization and demand from some customers
• Improved operating margin through cost structure improvements
• Continued promotion of new customer acquisition (residential LP gas: targeting rental housing owners, homebuilders, etc.)
• Nationwide expansion of renewable energy products such as solar carports
• Expanded proposals for reducing environmental impact through collaboration with other segments within the group
• Expansion of peripheral equipment sales and construction orders, and expansion of sales area

Risks

• Risk of declining sales prices for petroleum products and LP gas (due to market conditions and crude oil price fluctuations)
• Risk of decreased sales volume due to declining customer utilization levels
• Risk of procurement disruptions for petroleum products due to worsening conditions in the Strait of Hormuz (the business most susceptible to this impact within the group)
• Long-term decline in petroleum product demand due to accelerating decarbonization and energy transition
• Intensifying competition in the renewable energy field
• Fluctuations in raw material and energy prices due to geopolitical risk

Business Details

This segment handles the sale, design and installation of unit baths, system kitchens, washstands, built-in furniture, and air conditioning equipment. Main customers are developers, general contractors, and design firms, with orders centered on new construction and renovation projects for high-end condominiums and hotels in the Tokyo area. The company is actively investing in promotional expenses to increase awareness and expand sales of its original brands (bathtubs "JAXSON"/"HIDEO", system kitchen "INTENZA®", modular furniture "Tesera®"), and currently continues to record operating losses.

Recent Overview

Net sales increased 10.5% year on year, but operating loss expanded due to increased promotional expenses

Net sales in FY2026 (ending March 2026) increased 10.5% year on year to ¥14,482 million. Multiple large-scale projects progressed in the Tokyo metropolitan area, and the original brand "INTENZA®" system kitchen was adopted in multiple properties, primarily high-end condominiums in the Tokyo area. Orders received also increased for the second consecutive year, up 10.1% year on year to ¥15,656 million. On the other hand, the operating loss expanded to ¥698 million (compared to an operating loss of ¥469 million in the previous fiscal year) due to increased personnel expenses and advertising costs associated with original brand promotional activities. For FY2027 (ending March 2027), the company forecasts net sales of ¥15,246 million (up 5.3% year on year) and an operating loss of ¥290 million (a narrowing of the loss compared to the previous fiscal year), anticipating loss improvement as the effects of brand investment materialize.

Key Products

Growth Drivers

• Continued progress on large-scale projects for high-end and upper-middle-class condominiums in the Tokyo metropolitan area (order backlog accumulated to ¥16,746 million)
• Expanded adoption of original brands (INTENZA®, etc.) in high-end condominiums in the Tokyo area
• Promotion of an integrated prime interior brand strategy under the concept "Aesthetics reside in the details of daily life"
• Enhanced brand experience and proposals utilizing the "sosū select showroom" opened in Nonoichi City, Ishikawa Prefecture in August 2025
• Construction of a prime housing equipment supply chain providing consistent support from initial design through construction and after-sales care
• Solid demand in the high-end housing market, primarily in urban areas

Risks

• Continued operating losses due to ongoing promotional expenses for increasing awareness and expanding sales of original brands (FY2027, ending March 2027 forecast: operating loss of ¥290 million)
• Risk inherent to the order-based construction business model, where net sales are significantly affected by the progress of large-scale projects in the Tokyo metropolitan area
• Impact on installation and interior construction work due to changes in the procurement environment and delays in construction projects (including geopolitical risks such as Middle East tensions)
• Since the segment targets the high-end and upper-middle-class markets, performance is susceptible to changes in real estate market conditions and consumption trends among affluent individuals
• Medium- to long-term declining trend in new housing starts against a backdrop of population decline, rising interest rates, and rising construction costs
• Risk of extended investment recovery periods associated with brand development both domestically and overseas

Business Details

This segment's main businesses are the sale of consumables used in computers and office equipment, and the maintenance management of office buildings and other properties. It consolidates business segments not included in Mitani Sangyo Group's six reportable segments, serving a complementary function for the entire group. Net sales (including internal transactions) were ¥3,121 million (up 12.6% year on year), a small-scale segment accounting for approximately 2.6% of the group's consolidated net sales.

Recent Overview

Both net sales and operating profit increased year on year, continuing stable growth

In FY2026 (ending March 2026), net sales (including internal transactions) were ¥3,121 million (up 12.6% year on year), net sales to external customers were ¥1,992 million (up 20.4% year on year), and operating profit was ¥238 million (up 24.6% year on year). This was driven by increased inter-segment internal transactions linked to the group's overall sales expansion, and growth in sales to external customers. The segment's share of the group's consolidated net sales remained at approximately 2.6%, the same level as the previous fiscal year.

Key Products

Growth Drivers

• Continued solid demand for the sale of computer and office equipment supplies
• Stable order foundation in the maintenance management business for office buildings and other properties
• Increase in inter-segment internal transactions linked to the group's overall sales expansion
• Expansion of sales to external customers (up 20.4% year on year)

Risks

• A collection of small-scale, diverse businesses not included in the reportable segments, making it difficult to manage revenue fluctuations of individual businesses
• Risk of shrinking demand due to paperless and digitalization trends in the computer and office equipment supplies market
• The segment's overall net sales account for only approximately 2.6% of the group's consolidated net sales, so the impact on the group's overall performance is limited