ASNOVA Co., Ltd.
9223・Growth Market・Services
Business
ASNOVA Co., Ltd. operates a core business of renting and selling temporary equipment, centered on wedge-lock scaffolding, to small and medium-sized scaffolding contractors in Japan. The company operates 5 sales offices and 24 equipment centers nationwide, with the number of rental contract clients surpassing 3,500. In 2022, it established a Vietnamese subsidiary to launch its Overseas Scaffolding Rental Business, and in April 2025 it made Qool Enviro Pte. Ltd., a temporary toilet rental company in Singapore, a wholly owned subsidiary. While maintaining the Domestic Scaffolding Rental Business as a stable earnings foundation, the company is expanding into new rental business areas in the ASEAN region through M&A, aiming to become a highly profitable group of global rental businesses.
Business Model
The company owns temporary equipment as its own assets and provides rental services to small and medium-sized scaffolding contractors nationwide through its equipment centers, generating continuous rental revenue. While rental remains the core business, the company also offers solution proposals that combine sales via EC sites and other channels to meet customers' replacement/renewal demand and business expansion investment needs. The revenue model emphasizes maximizing equipment utilization rates and EBITDA management that accounts for depreciation expenses.
Company Strengths
As of February 2026, the number of companies with rental contracts surpassed 3,500. The company operates 24 equipment centers and 5 sales offices nationwide, and in August 2025 newly opened the Fukushima Motomiya Center to expand its share in the Tohoku area. A regionally-rooted equipment supply system built through dominant-area development supports the continued expansion of the customer base.
The company has built a system that provides everything from temporary equipment rental to EC sales of used equipment on an integrated basis. Through the membership-based service "ASNOVA Club" for scaffolding contractors and the introduction of a web-based ordering system, the company has reduced customers' ordering burden and suppressed human error, thereby improving transaction continuity rates and strengthening customer touchpoints.
In FY2026 (ending March 2026), segment profit in the Domestic Scaffolding Rental Business was ¥757 million, with a segment profit margin of approximately 18.5% against net sales of ¥4,093 million. Although this declined year on year, the company has maintained a high profit margin level by restraining investment in rental equipment while efficiently operating existing equipment holdings.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥2,680 million in FY2022 (ended March 2022) to ¥4,915 million in FY2026 (ending March 2026), up 15.2% year on year. However, the main driver of this growth was the consolidation of Qool (newly recorded ¥790 million in Overseas Other Rental Business), while the domestic core business declined 6.3% year on year. Operating profit, which peaked at ¥350 million in FY2024 (ended March 2024), fell sharply to ¥49 million in FY2025 (ended March 2025) and then to ¥5 million in FY2026 (ending March 2026). A sharp increase in Qool acquisition-related expenses, goodwill amortization, and interest expenses (up ¥103 million) resulted in an ordinary loss of ¥84 million and a net loss of ¥146 million. As external factors, the continued low level of housing starts, surging construction material costs, and concerns over rising interest rates are suppressing domestic construction investment, hindering improvement in the utilization rate of rental assets.
Growth Strategy
Aiming for non-linear growth through ASEAN M&A while maintaining domestic scaffolding rental as the earnings base, transitioning to a holding company structure
The company continues dominant expansion of its nationwide equipment centers, newly opening a location in Motomiya City, Fukushima Prefecture in September 2025. It aims to capture steady demand for renovations such as large-scale repairs of low- and mid-rise condominiums, improving rental utilization rates and achieving sales recovery. Recovery of profitability in the domestic business is the top priority for FY2027 (ending March 2027).
Qool (Singapore; Temporary Toilet Rental), which became a wholly owned subsidiary in April 2025, recorded net sales of ¥790 million and segment profit of ¥65 million for a 9-month period in FY2026 (ending March 2026). Full-year contribution is expected to begin from FY2027 (ending March 2027), with expanded contribution to consolidated results anticipated.
ASNOVA Singapore Pte. Ltd. was established in April 2026 (capital of SGD100,000, wholly owned by the company) to function as a regional headquarters responsible for promoting M&A in the ASEAN region, providing PMI support, and managing subsidiary operations. Qool is planned to be transferred to become a subsidiary of ASNOVA Singapore (a grandchild company of the company).
The company plans to implement a sole-share transfer with an effective date of October 1, 2026 (planned), transitioning to a holding company structure. The purpose is to enable rapid decision-making, strengthen group governance, and accelerate M&A. The company plans to apply for listing on the Tokyo Stock Exchange Growth Market and the Nagoya Stock Exchange Next Market. This is contingent on approval at the Annual General Meeting of Shareholders on June 25, 2026.
Last updated: July 19, 2026