ASNOVA Co., Ltd.

Business Details

Targets small and medium-sized scaffolding contractors in Japan as its primary customers, providing one-stop rental and sales of new and used temporary equipment, mainly wedge-lock scaffolding, along with related services. The company operates through equipment centers and sales offices nationwide. Rental demand has remained resilient, capturing demand from customers who are refraining from purchasing amid soaring temporary equipment prices. In September 2025, the company opened a new equipment center in Motomiya City, Fukushima Prefecture, expanding its supply network.

Recent Overview

Domestic Scaffolding Rental Business revenue and profit both declined year on year due to delayed construction starts

Full-year revenue of the Domestic Scaffolding Rental Business for FY2026 (ending March 2026) was ¥4,094 million (down 6.3% year on year), and segment profit was ¥758 million (down 12.9% year on year). While rental demand remained resilient, chronic labor shortages and delayed construction starts due to rising material costs weighed on equipment shipments. In September 2025, the company opened a new equipment center in Motomiya City, Fukushima Prefecture, strengthening its supply network. On a consolidated basis, revenue increased 15.2% year on year due to the consolidation of Qool Enviro Pte. Ltd. (April 2025), but a sharp increase in interest expense (from ¥47 million in the prior period to ¥103 million in the current period) and other factors led to an ordinary loss of ¥84 million and net loss attributable to owners of the parent of ¥146 million.

Key Products

Growth Drivers

• Continued soaring temporary equipment prices restraining purchases, leading to resilient rental demand
• Resilient construction demand supported by steady public investment
• Expected steady future demand for renovation work, including large-scale repairs of low- and mid-rise condominiums
• Dominant nationwide expansion of equipment centers (new center opened in Motomiya City, Fukushima Prefecture in September 2025)
• Revenue contribution from the Overseas Other Rental Business through the consolidation of Qool Enviro Pte. Ltd. as a subsidiary (revenue of ¥790 million, segment profit of ¥66 million)
• Full-year contribution from Qool Enviro Pte. Ltd.'s performance expected from FY2027 (ending March 2027) onward
• Structural expansion of rental needs driven by increasing renovation demand and widening fluctuations in construction workload

Risks

• Delays in construction start timing due to labor shortages and rising construction material costs → downside risk to expected equipment shipments (Domestic Scaffolding Rental Business revenue for FY2026 (ending March 2026) down 6.3% year on year)
• Profit pressure from increased depreciation expense (¥1,994 million for the full year) associated with active investment in rental assets
• Fall into ordinary loss due to increased borrowings and a sharp rise in interest expense (from ¥47 million in the prior period to ¥103 million in the current period) associated with the acquisition of Qool Enviro Pte. Ltd. (acquisition cost of ¥2,013 million)
• Amortization burden of goodwill (period-end balance of ¥965 million) and customer-related assets (¥332 million) (each amortized evenly over 10 years)
• Stagnation of projects in the Vietnam business (Overseas Scaffolding Rental Business) due to the impact of central government and administrative division reorganization (revenue of ¥31 million, down 54.0% year on year, segment loss of ¥181 million)
• Risk of downward pressure on domestic rental demand due to a low level of new housing construction starts
• Reduced financial flexibility due to a significant decrease in cash and cash equivalents (from ¥3,183 million to ¥882 million)
• Reorganization costs and risks related to delisting and relisting review associated with the planned transition to a holding company structure (scheduled for October 1, 2026)