NAGAWA Co., Ltd.
9663・Prime Market・Services
Business
NAGAWA Co., Ltd. is a TSE Prime-listed specialty manufacturer founded in 1966, which began its unit house (Super House) business in 1974. In its core Unit House Business (approximately 82% of net sales), the company manufactures, sells, and rents steel-frame unit houses, and achieved cumulative production of 700,000 Super House units in March 2025. Its second pillar, the Module & System Construction Business, handles the construction and sale of low-rise buildings with short lead times and low costs, and the company also operates a Construction Machinery Rental Business based in Hokkaido. Serving a broad customer base of government agencies, private corporations, and individuals, the company has built a sales network through permanent showrooms and satellite showrooms nationwide.
Business Model
The company manufactures unit houses at its own factories and generates revenue through two pillars: sales revenue (¥13,210 million in FY2026 (ending March 2026)) and rental revenue (¥15,855 million in the same period). Rentals accumulate the number of units held through continuous capital investment in leased assets (¥4,648 million in FY2026 (ending March 2026)), generating stable recurring revenue by maintaining utilization rates. Funding is based primarily on internal capital, and the company maintains debt-free management backed by a robust financial foundation with an equity ratio of 87.3%.
Company Strengths
Leased assets, the core asset of the Unit House Business, have increased for five consecutive years, and rental income for FY2026 (ending March 2026) is projected at ¥15,855 million, exceeding sales revenue of ¥13,210 million. The rental business achieved an sales plan attainment rate of 108.4%, exceeding its plan, with stable stock-type revenue underpinning overall performance.
The company has a long-standing manufacturing track record, having achieved cumulative production of 700,000 Super House units in March 2025. It has expanded its sales network into previously uncovered regions nationwide through the continuous opening of new permanent and satellite showrooms and renovations of existing ones. The fully automated welding robots introduced in 2024, which enabled labor savings and increased production capacity, reduced the cost ratio by 0.6 percentage points year on year (from 60.8% to 60.2%).
The equity ratio as of the end of FY2026 (ending March 2026) reached 87.3%, with total net assets of ¥69,245 million. Funding is based primarily on internal funds, with cash and deposits of ¥14,376 million on hand. While covering capital expenditures of ¥5,312 million entirely with internal funds, the company retains sufficient financial capacity to continue increasing dividends and conducting share buybacks, targeting a total shareholder return ratio of 30% or more.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥30,587 million in FY2022 (ended March 2022) to ¥35,385 million in FY2026 (ending March 2026). However, the growth rate decelerated sharply from 8.3% in FY2025 (ended March 2025) to just 0.3% in FY2026 (ending March 2026). The operating margin improved slightly to 12.4% (12.2% in the prior period). Cost of sales decreased to ¥21,286 million (¥21,470 million in the prior period), improving the gross margin, while selling, general and administrative expenses increased to ¥9,718 million (¥9,524 million in the prior period). Externally, soaring material costs and a shortage of skilled workers continue to pressure profitability, but this has been partially absorbed through cost containment measures such as robotization and changes in component specifications.
Growth Strategy
Establishing a "light-gauge steel general contractor" through showroom expansion, AI utilization, M&A, and rental asset investment
The company will continue opening showrooms in underserved areas to increase inquiries from a wide range of industries and business types. Building on the track record of the permanent showroom opened in the prior period, which gained traction in FY2026 (ending March 2026) and contributed to increased customer traffic and stronger sales, the company has clearly stated its policy to continue expanding showrooms in the next period as well.
The company has clearly stated, as a management policy, its intention to streamline business processes through AI utilization. Amid ongoing labor shortages and rising personnel costs in the construction industry, the company aims to strengthen competitiveness and improve profitability through digitalization. As of FY2026 (ending March 2026), this remains at the policy stage, with concrete effects yet to be disclosed.
Amid worsening labor shortages in the construction industry, the company has clearly stated M&A-driven talent acquisition and business expansion as a management policy. The Module & System Construction Business recorded a 13.7% year-on-year decline in profit in FY2026 (ending March 2026), making strengthening the business framework through M&A an urgent priority.
In FY2026 (ending March 2026), the company invested ¥4,648 million in rental asset acquisitions, steadily increasing the number of units held. Rental assets (net) expanded to ¥14,924 million (from ¥14,339 million in the prior period), strengthening rental supply capacity and maintaining a high utilization rate. The company has clearly stated its policy to continue such investment in the next period as well.
In response to increasingly diverse customer needs, the company has stated its policy to advance product development with a view to re-entering overseas markets. It will also pursue the supply of highly competitive products alongside sales network expansion and capital investment to strengthen supply capacity. At present, this remains at the policy stage, with no concrete progress yet disclosed.
Last updated: July 19, 2026