T.O. Holdings CO.,LTD.
9812・Standard Market・Wholesale Trade
Business
TOH Holdings Co., Ltd. is a holding-company-structured conglomerate (listed on TSE Standard Market) founded in 1950 in Hakodate, Hokkaido. The group operates six segments: timber and building materials sales (TOH Forest Co., Ltd.), home center, furniture, and consumer loans (TOH Department Co., Ltd. / TOH Retailing Co., Ltd.), civil engineering and construction (Koizumi Construction Co., Ltd.), real estate leasing (operated directly by the holding company), three Nissan/Mitsubishi affiliated automobile dealerships (Hakodate Nissan, Kitami Nissan, Kitami Mitsubishi), and a non-life insurance agency business. Its primary market area is the Hokkaido and Tohoku regions, where it has built a regionally focused, diversified business portfolio. Consolidated net sales for FY2025 (ending May 2025) were ¥24,188 million.
Business Model
The automotive-related business (net sales of ¥9,844 million) and the distribution business (¥7,996 million) together account for approximately 74% of sales, forming the core operations. The real estate leasing business, though small in scale at ¥257 million in net sales, supports stable earnings with a high operating margin of 51.4%. The construction business secures profitability mainly through order-based private-sector construction. The lumber business operates on a wholesale model linked to housing start trends. Since each business has different earnings characteristics, the company employs a diversified, multi-business earnings model that provides a certain hedge against economic fluctuations.
Company Strengths
The real estate leasing business recorded net sales of ¥257 million and operating profit of ¥132 million (operating margin of 51.4%) in FY2025 (ended May 2025). Occupancy rates for leased properties remained solid, and SG&A expenses progressed as planned. Even as net sales declined 13.3% year on year, operating profit fell only 0.4% year on year, functioning as a stable support for group earnings.
The automotive-related business achieved net sales of ¥9,844 million (up 0.6% year on year) and operating profit of ¥160 million (up 4.4% year on year) in FY2025 (ended May 2025). While new car sales volume fell below the previous period, sales were maintained on the strength of used car sales, and cost reductions led to a profit increase. In the cumulative nine months of FY2026 (ending May 2026), net sales reached ¥6,178 million, with the vehicle inspection and maintenance service segment remaining solid.
The construction business (Koizumi Construction Co., Ltd.) achieved operating profit of ¥77 million (up 271.7% year on year) in FY2025 (ended May 2025). Progress in new orders centered on private-sector construction across a wide area of Hokkaido, along with improved construction progress management, contributed to this result. Against segment assets of ¥1,170 million, the business demonstrated high asset efficiency, securing an order backlog of ¥633 million (33.7% of the previous period).
ENVALITH's Perspective
Performance Trend
For FY2026 (ending May 2026), the company reported net sales of ¥23,543 million (down 2.7% year on year), operating profit of ¥207 million (down 6.8%), ordinary profit of ¥47 million (down 54.1%), and a net loss attributable to owners of the parent of ¥52 million. Net sales have declined for five consecutive periods from ¥27,702 million in FY2022 (ended May 2022), shrinking approximately 15% cumulatively. External factors—soaring material prices and transportation costs, weakening home-purchase sentiment due to the situation in the Middle East, and declining consumer sentiment amid rising prices—weighed on each segment. On the other hand, operating cash flow improved significantly to ¥1,798 million (versus ¥1,062 million in the prior period), supported by a ¥484 million decrease in inventories, a ¥615 million increase in trade payables, and a ¥516 million increase in advances received. Cash and cash equivalents at period-end doubled to ¥1,363 million (versus ¥683 million in the prior period). For FY2027 (ending May 2027), the company forecasts a recovery to net sales of ¥25,500 million and operating profit of ¥250 million.
Growth Strategy
Following the conclusion of "TO PLAN 2026," the company is transitioning to a new phase aimed at achieving both earnings stability and the creation of future value.
In the retail distribution segment, the company will continue reviewing its product mix, strengthening seasonal merchandise, and reducing SG&A expenses, while in the automotive-related business it will pursue cost reductions while leveraging steady demand in service areas such as vehicle inspections and maintenance. This carries forward into the next fiscal year the results achieved in FY2026 (ended May 2026), when retail distribution operating profit rose 44% and automotive-related operating profit remained at a level comparable to the previous period.
Building on the achievement of expanding net sales by 24.2% year on year to ¥2,952 million in FY2026 (ended May 2026) through the acquisition of large-scale private construction projects, the company will work to improve the quality (profit margin) of orders received. It aims to resolve the challenge of operating profit declining 26.9% year on year due to a high proportion of low-margin projects, and to improve profitability.
Improving the financial structure—characterized by an equity ratio of 2.1% and interest expenses of ¥187 million—is an urgent priority. The company will promote planned repayment of interest-bearing debt using operating cash flow (¥1,798 million in FY2026, ended May 2026), and improve asset efficiency through the selective disposal of real estate leasing properties.
"TO PLAN 2026," with FY2026 (ended May 2026) as its final year, concluded without achieving either its net sales or operating profit targets (actual net sales of ¥23,543 million against a target of ¥26,700 million; actual operating profit of ¥207 million against a target of ¥400 million). Under a new management policy of "achieving both earnings stability and the creation of future value," the company is required to formulate the specifics of its next medium-term management plan.
Last updated: July 17, 2026