ENVALITH
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CROPS CORPORATION

9428・Standard Market・Information & Communication

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株式会社クロップス logo
CROPS CORPORATION9428

Business

Crops Inc., founded in 1977 and operating as a KDDI first-tier agency since 1994 with the Mobile Communications Business as its core, is a diversified group spanning seven businesses in total: staffing, building maintenance, store sublease, real estate sales, wholesale, and overseas operations. Comprising 24 consolidated subsidiaries, the group operates 86 au/UQ Mobile shops mainly in the Tokai and greater Tokyo areas, alongside a sublease business specializing in restaurant properties (3,021 managed properties), building maintenance services for the Isuzu Motors group, stationery and daily goods wholesale, and labor management outsourcing in Southeast Asia, holding a business portfolio that spans diverse industries. Listed on the Tokyo and Nagoya Stock Exchanges, the company posted consolidated net sales of ¥67,497 million for FY2026 (ending March 2026).

Business Model

In the Mobile Communications Business, the company earns device sales and commission income as a KDDI agent, while in the Store Sublease Business, it acquires restaurant properties and subleases them to continuously accumulate rent margin income and guarantee fees. Building Maintenance and Staffing Business provide stable stock-type revenue, complemented by the flow-type revenue of the Real Estate Sales Business and Wholesale Business. The structure uses business acquisitions through M&A and alliances as a growth engine, aiming to expand the group's overall earnings power and scale of operations.

Company Strengths

The number of managed properties in the Store Sublease Business reached 3,021 as of the end of FY2026 (ending March 2026) (a net increase of 315 from the prior fiscal year-end), and the combined total of new and succession contracts recorded 607 (up 24.4% year on year). The continued net increase in the number of properties has led to an accumulation of rent margin gains, resulting in a segment profit margin of 8.7% and profit of ¥1,548 million, making it the largest profit-contributing segment in the Group.

In addition to the primary agency agreement with KDDI since 1994, the company concluded a capital and business alliance with KDDI in December 2022. KDDI subscribed to 420,000 shares of the company's stock and holds the right to nominate one candidate for full-time director and one candidate for part-time audit and supervisory committee director. Through deepened collaboration with the sales network of 86 stores centered on the Tokyo-Nagoya area, sales in the Mobile Communications Business for KDDI in FY2026 (ending March 2026) reached ¥29,408 million (43.6% of total sales).

The company has executed numerous M&A deals, including Tempo Innovation (2009), Hapila (2010), Isuzu Building Maintenance (2003), and INNOVARE HOLDINGS (2019), building a 7-business structure. In March 2026, the company acquired 10 stores in the Mobile Communications Business through a business transfer (transfer cost of ¥965 million), continuing to expand its business scope through M&A.

ENVALITH's Perspective

While operating profit for FY2026 (ending March 2026) achieved substantial improvement, reaching ¥3,601 million (up 50.6% year on year), the Overseas Business (JOB LINKS CORPORATION) recorded a total impairment loss of ¥763 million on goodwill and customer-related assets (of which ¥705 million was goodwill), triggered by a change in Vietnamese law. Profit attributable to owners of parent was limited to ¥926 million (down 6.5% year on year), reaffirming the structure in which impairment risk inherent in the M&A strategy suppresses the net profit level.

In the Store Sublease Business, the number of subleased properties reached 3,021, with new and succession contracts also expanding at an accelerated pace, up 24.4% year on year. While the recovery in inbound demand in the restaurant industry has been a tailwind as an external factor, the accumulation of the property stock has been forming a sustainable profit growth foundation through the company's own efforts. The Real Estate Sales Business also achieved multiple sales of large-scale, high-profitability properties, recording a segment profit margin of 22.3%. Attention is focused on whether the forecast net profit of ¥1,855 million (up 100.3% year on year) for FY2027 (ending March 2027) can be achieved.

Total corporate taxes and other for FY2026 (ending March 2026) rose substantially to ¥1,383 million (from ¥852 million in the prior period), with the effective tax rate rising to approximately 47%. In addition, due to the expansion of profit attributable to non-controlling interests to ¥635 million (from ¥484 million in the prior period), against consolidated net profit of ¥1,562 million, the portion attributable to owners of parent was limited to ¥926 million. Although the dividend was increased to ¥29 per share (payout ratio of 29.6%), the structural weight of the tax burden and minority interests is reducing the efficiency of profit distribution to shareholders of the parent, making future improvement a challenge.

Growth Strategy

Aims to expand business scale through M&A/alliance-driven store and business acquisitions, combined with improved profitability across the existing 7 businesses

In March 2026, the company acquired the au Shop operation business entrusted by Toyota Mobility Parts and the au Shop/UQ Spot operation business of Sabusuku Co., Ltd., adding 10 stores. Goodwill recorded amounted to ¥721 million. Combined with strengthened external sales activities targeting commercial facilities and enhanced accessory sales, this pushed segment profit up 88.9% year on year.

The number of subleased properties continued to see net increases, reaching 3,021 properties at the end of FY2026 (ending March 2026) (up 315 from the prior fiscal year-end). New contracts and successor placements totaled 607 (up 24.4% year on year), accelerating expansion. In parallel, Safety Innovation Co., Ltd. is advancing branch expansion into key regions for the Store Rent Guarantee Business.

In FY2026 (ending March 2026), the company sold 7 properties and acquired 6, achieving segment profit of ¥492 million (up 261.4% year on year) through multiple sales of large, high-profitability properties. While leveraging the external factor of rising prices for commercial real estate in central urban areas, the company plans to strengthen its information-gathering and sales capabilities through enhanced relationships with real estate brokers, increased sales staff, and DX initiatives.

The company newly launched the Construction Management Engineer Staffing (New) business, beginning expansion into a high-value-added field. In FY2026 (ending March 2026), segment profit was limited to ¥76 million (down 26.6% year on year) due to upfront launch costs and advertising expenses related to the 25th anniversary, but profit contribution is expected once these costs subside.

JOB LINKS CORPORATION's Vietnam payroll business saw profitability deteriorate due to regulatory changes, resulting in an impairment loss of ¥705 million on goodwill and other assets. Meanwhile, the Employment Outsourcing Services (Contractor Staffing) business saw steady growth in the number of contractors and improving profitability, narrowing the segment loss to ¥(1) million (from ¥(85) million in the prior fiscal year). Going forward, stabilizing profitability in the remaining business and strengthening overseas risk management remain key challenges.

Last updated: July 19, 2026