TOHO GAS CO., LTD.
9533・Prime Market・Electric Power & Gas
Business
Toho Gas Co., Ltd., founded in 1922, is a comprehensive energy group centered on its core city gas business serving the three prefectures of Aichi, Mie, and Gifu, with a broad range of operations spanning LPG, electricity, LNG, heat supply, engineering, real estate, and overseas natural gas development. The group comprises 35 consolidated subsidiaries and 40 affiliated companies, and as of the end of FY2026 (ending March 2026), it served a total of 3,121 thousand customers, comprising 1,759 thousand for Gas, 646 thousand for LPG, and 716 thousand for Electricity. The company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange, and plays a public utility role in supporting the energy infrastructure of the Chubu region.
Business Model
The core of earnings is city gas manufacturing and sales through a proprietary pipeline network (total length of trunk and branch pipes: 31,645km), supported by a raw material cost adjustment system that passes through fluctuations in raw material costs to rates. Cross-selling is pursued through multi-energy proposals encompassing LPG, electricity, and heat supply, while peripheral businesses such as engineering, real estate, and information services complement stable cash flow. LNG procurement is based primarily on long-term contracts, with sourcing diversified across Indonesia, Australia, Malaysia, Qatar, Russia, the United States, and Canada to reduce risk.
Company Strengths
As of the end of FY2026 (ending March 2026), the company held a pipeline infrastructure with a total main and service pipe length of 31,645km, serving a combined total of 3,121 thousand customers across Gas, LPG & Other Energy, and Electricity. The number of city gas customers is expanding steadily, up 9 thousand from the previous fiscal year-end to 1,759 thousand, and the region-rooted customer base and supply infrastructure—difficult for competitors to replicate in a short period—serve as a source of stable earnings.
The company's basic approach is long-term contracts with procurement regions diversified across Indonesia, Australia, Malaysia, Qatar, Russia, the United States, and Canada, and in July 2025 it newly began receiving cargoes from Canada. In FY2026, the completion of an LNG vessel invested in by the group is also planned, and building procurement flexibility and stability in-house constitutes a competitive advantage.
The company operates the membership site "Club TOHOGAS," used by more than 1 million customers over the 10 years since its launch, and also runs the e-commerce site "Club TOHOGAS MALL." Through renewals, the company has worked to improve convenience as a digital platform, and it functions as a digital customer touchpoint that supports cross-selling of gas, electricity, housing equipment, and other products.
ENVALITH's Perspective
Performance Trend
Revenue in FY2026 (ending March 2026) declined slightly to ¥651,085 million (down 0.8% year on year). While cost of sales decreased significantly to ¥471,790 million (down 2.4% year on year), supply, selling, general and administrative expenses increased to ¥147,511 million (up 3.9% year on year). As an external factor, crude oil prices fell to $71.4/barrel (down $11.0 year on year), and the expansion of the timing-lag gain under the raw material cost adjustment system was the main driver of ordinary profit of ¥37,879 million (up 16.9% year on year) and net income attributable to owners of the parent of ¥31,449 million (up 23.6% year on year). Comprehensive income increased substantially to ¥66,678 million (up 158.0% year on year), aided by an increase in valuation difference on available-for-sale securities (¥20,543 million) resulting from a rise in the fair value of investment securities. Looking at the five-year trend, the company continued an adjustment phase following the high level seen in FY2023 (operating profit of ¥43,743 million), with a modest recovery in FY2026. The forecast for FY2027 (ending March 2027) anticipates operating profit of ¥19,000 million, representing another substantial profit decline.
Growth Strategy
Leveraging stable cash flow generation from core businesses, the company is shifting management resources toward strategic businesses such as Electricity and overseas operations to enhance corporate value
Continued expansion of the number of Electricity customers (716 thousand at the end of FY2026 (ending March 2026)) and increased sales volume (up 2.9% year on year) resulted in operating income of ¥1,972 million, cementing profitability. The company continued aggressive investment with an increase in tangible and intangible fixed assets of ¥11,512 million, and expects further customer growth (forecast of 738 thousand) in the next fiscal year.
Through one-stop proposals combining Gas, LPG, and Electricity, the company achieved a total of 3,121 thousand customers at the end of FY2026 (ending March 2026) (up 34 thousand from the previous fiscal year-end). For the next fiscal year, the company plans to reach 3,158 thousand customers (up 38 thousand year on year), continuing to promote higher revenue per customer through cross-selling and diversification of revenue streams.
The investment and loan plan for the next fiscal year (FY2027, ending March 2027) has been significantly expanded to ¥87.0 billion (up 46.7% from ¥59.2 billion in the current fiscal year). The company is accelerating the shift of management resources toward carbon neutrality-related initiatives (e-methane production demonstration, hydrogen production plants) and overseas natural gas development investments, aiming to diversify revenue sources over the medium to long term.
Effective April 1, 2026, the company implemented a stock split at a ratio of 4 shares for every 1 share of common stock (total number of issued shares after the split: 366,267,140 shares). This lowers the investment unit price, aiming to expand the investor base, including individual investors, and improve share liquidity.
Last updated: July 19, 2026