HIGASHI HOLDINGS CO.,LTD.

Business Details

Building on transportation services in the Kinki region such as newspaper delivery, beverage delivery, and non-ferrous metal transportation, the segment offers diverse services including corporate office relocation, in-building delivery, reverse logistics (confidential document collection and recycling), precision equipment transportation (bank ATMs, financial terminals, etc.), IT kitting, and mail services. Delivery operations for major e-commerce clients are a key growth driver, and in FY2026 (ending March 2026) this is the largest segment, accounting for approximately 50.9% of the group's total sales of ¥57,972 million.

Recent Overview

Achieved 15.9% sales growth driven by expanded transportation for major e-commerce clients and growth in relocation and in-building delivery businesses.

For the full year of FY2026 (ending March 2026), Transportation Business sales were ¥29,530 million (up 15.9% year on year), and segment profit was ¥3,687 million (up 17.5% year on year). The main drivers of revenue growth were the expansion of transportation operations for major e-commerce clients due to full-scale operation of the Kawanishi Logistics Center (opened August 2024), and growth in the relocation and in-building delivery businesses. The increase in tangible and intangible fixed assets was ¥389 million, roughly in line with the prior period (¥395 million), indicating that capital expenditure has largely run its course.

Key Products

Growth Drivers

• Continued expansion of delivery operations for major e-commerce clients (increased transportation volume due to full-scale operation of the Kawanishi Logistics Center)
• Continued growth in the relocation business and in-building delivery business
• Expansion of transportation operations accompanying the additional floor space at the Nagareyama Logistics Center (warehouse floor area of 29,533 tsubo), scheduled to begin operation in May 2026
• Expansion of the precision equipment transportation service due to increased delivery and installation work for precision machinery compatible with new currency
• Strengthened collaboration with ICT equipment deployment services through the consolidation of Peerless Co., Ltd.

Risks

• Risk of reduced transportation capacity due to truck driver working hour restrictions (the '2024 problem')
• Intensifying labor shortage due to the declining working-age population amid a shrinking birthrate and aging population
• Risk of increased costs due to rising fuel prices (though the fuel cost ratio to sales is minor, at approximately 0.4%)
• Risk of revenue concentration in major e-commerce clients
• Risk of fluctuation in logistics demand due to the impact of US trade policy and domestic price increases