PHYZ Holdings Inc.

Business Details

From the current consolidated fiscal year, the business has been reorganized from the "EC Solution Services Business" into two segments: "Operation Services Business" and "Transport Services Business." The Operation Services Business is responsible for outsourced logistics center operations (staffing, contracting, 3PL) for online retail and distribution industries, while the Transport Services Business provides a dispatch platform, trunk transport, and last-mile delivery. Together, the two segments account for 92.6% of consolidated net sales, forming the company's core business group.

Recent Overview

Combined sales of both segments grew significantly by 28.8% year on year, but the profit margin of the Operation Services Business declined

In FY2026 (ending March 2026), the Operation Services Business achieved substantial sales growth, with sales of ¥26,927 million (up 32.8% year on year), while segment profit decreased to ¥941 million (down 9.2% year on year). This is believed to reflect the pressure on profit from the launch costs of a new large-scale logistics center for a major online retailer and rising labor costs. The Transport Services Business achieved both sales and profit growth, with sales of ¥10,533 million (up 19.1% year on year) and segment profit of ¥465 million (up 47.3% year on year). Seinoshin Co., Ltd. (specializing in home appliance logistics) became a subsidiary in October 2025, strengthening services for the loading/unloading and installation of large items.

Key Products

Growth Drivers

• Increase in outsourced logistics center operation projects driven by the continued expansion of the EC market (start of new operations at large-scale logistics centers for major online retailers)
• Growth in the number of client companies using the dispatch platform service and expansion of outsourced actual transport operations (inter-hub transport, route delivery, last-mile delivery)
• Strengthening of home appliance logistics services (large-item loading/unloading and installation) through the consolidation of Seinoshin Co., Ltd. as a subsidiary, and joint delivery proposals to existing and new customers
• Stable operation of the new 3PL facility in Noda City, Chiba Prefecture, and new outsourcing contracts for logistics centers for major online retailers (planned for FY2027, ending March 2027)
• Improved cost efficiency and higher proportion of in-house operated inter-hub transport through expansion of company-owned vehicles and enhanced recruitment of in-house drivers
• Improvement in profit margin through the introduction of a fuel surcharge system and progress in price pass-through negotiations with shippers

Risks

• Risk of launch costs and utilization rate issues for new logistics centers in the Operation Services Business (factor in margin decline)
• Driver shortages, rising labor costs, and increasing recruitment costs (continued impact of overtime work restrictions under the "2024 problem")
• Cost pressure on the Transport Services Business from persistently high fuel and outsourced vehicle costs
• Risk of sales concentration on major online retailers (such as Amazon Japan G.K.)
• Need to respond to demand fluctuations in logistics center operations (staffing and cost management amid busy/slow period gaps)
• Continued amortization burden of goodwill related to Seinoshin Co., Ltd. (¥301 million, straight-line amortization over 9 years)
• Risk of rising fuel costs and logistics disruption concerns due to worsening conditions in the Middle East and sharp increases in crude oil prices