ENVALITH
トラスコ中山株式会社 logo

TRUSCO NAKAYAMA CORPORATION

9830・Prime Market・Wholesale Trade

Official website
トラスコ中山株式会社 logo
TRUSCO NAKAYAMA CORPORATION9830

Business

TRUSCO NAKAYAMA operates under the corporate message "Ganbare!! Nihon no Monozukuri" (Go for it!! Japanese Manufacturing) and is a wholesale company specializing in indirect materials (PRO TOOL), primarily serving manufacturing, construction, home centers, and e-commerce companies as its main customers. The company operates through four sales channels—Factory Route, e-Business Route, Home Center Route, and Overseas Route—and has built an immediate-delivery system utilizing an inventory of approximately 620,000 items across 28 distribution centers and 29 stock-holding branches nationwide. It also offers a private brand, "TRUSCO," comprising approximately 88,000 items, and has overseas subsidiaries in Thailand and Indonesia. Consolidated net sales for FY2025 (ending December 2025) were ¥320,043 million.

Business Model

Procures merchandise from 3,729 suppliers and holds a distributed inventory of 623,582 items across nationwide logistics centers. The company consolidates trade flow through value-added services—automated order processing linked with customer (retailer and e-commerce company) systems (system-based order ratio of 88.6%), direct-to-user delivery service (direct delivery sales of ¥47,588 million), and MRO Stocker units (1,608 units)—while pursuing scale expansion while maintaining a gross profit margin of 20.9%.

Company Strengths

As of the end of FY2025 (ending December 2025), the company held 623,582 inventory items with an inventory value of ¥68,178 million. It operates 28 distribution centers and 29 inventory-holding branches nationwide, achieving an inventory shipment rate of 92.8%. It has set a capacity target of holding 1 million inventory items by 2030, and has already built the foundation by launching the product management system "Sterra2.0".

I-Pack® (high-speed automated packing and shipping line) has been introduced at 5 locations, expanding the number of direct-to-user shipped packages by 35.6% year on year to 8,487,923 packages. Unique services combining digital technology and logistics—such as the AI quotation tool "Sokutou Meijin," a system order rate of 88.6%, and 2,880 companies connected via Orange Commerce—differentiate the company from competitors.

Sales of the private brand "TRUSCO" totaled ¥51,945 million (16.2% of sales composition). The company has a vertically integrated product development structure in which affiliated companies manufacture items such as casters, toolboxes, and workbenches, which the company then purchases. For FY2026 (ending December 2026), the company plans PB sales of ¥55,050 million (+6.0% year on year), contributing to improved profitability.

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), the e-business route maintained high growth of 18.7% year-on-year, and consolidated net sales reached ¥86,961 million, up 9.8%. Meanwhile, increases in freight and packing costs (up 15.5% year-on-year), higher personnel expenses stemming from the base salary revision and increased housing allowance implemented in July 2025, and higher commission expenses and depreciation from the operation of the new core system "Paradise 4" combined to push selling, general and administrative expenses up 9.2% year-on-year to ¥11,759 million. As a result, the gross profit margin declined from 21.0% to 20.4%, and the growth rate of operating profit was limited to 2.7%.

The full-year earnings forecast for FY2026 (ending December 2026) calls for net sales of ¥341,000 million (up 6.5% year-on-year), operating profit of ¥21,720 million (down 4.8% year-on-year), and net income of ¥14,540 million (down 8.4% year-on-year), indicating higher revenue but lower profit. Total assets at the end of Q1 expanded to ¥335,453 million (up 8.8% from the end of the previous fiscal year), with short-term borrowings increasing from ¥10,000 million to ¥20,000 million and long-term borrowings increasing from ¥55,000 million to ¥70,000 million. The equity ratio declined from 60.4% to 56.2%, reflecting an aggressive investment phase in which inventory build-up and capital expenditures (construction in progress of ¥28,140 million, software of ¥6,232 million) are being funded through borrowing. Attention should also be paid to external factors, such as concerns over shortages of imported raw materials due to heightened tensions in the Middle East, which pose a downside risk to manufacturing sentiment.

In Q1 of FY2026 (ending December 2026), the home center route secured higher sales of ¥7,130 million (up 8.3% year-on-year), but fell into an ordinary loss of ¥15 million (versus ordinary profit of ¥64 million in the same quarter of the previous year) due to rising costs. Meanwhile, the e-business route maintained high profitability with ordinary profit of ¥2,015 million (up 11.5% year-on-year). The factory route saw only a slight increase in ordinary profit to ¥3,961 million (up 1.0% year-on-year), widening the profitability gap between segments. The overseas route also posted a small decline in ordinary profit to ¥71 million (down 7.6% year-on-year), and attention should be paid to the structural shift toward increasing dependence on the e-business route.

Growth Strategy

Aiming to become an MRO platformer through aggressive investment in products, logistics, digital infrastructure, and human capital

Centered on 28 nationwide distribution centers and 30 inventory-holding branches, the company is expanding its inventory item count, increasing stock of BCP-compliant products, and expanding disaster recovery agreements with local governments (currently 39 municipalities). It has set a target of 1 million inventory items by 2030 and continues inventory optimization to prevent stockouts and quantity shortages.

The new core system "Paradise 4" began operation in January 2026. Through enhanced integration with the AI quotation system "Sokuto Meijin" and the e-commerce site "TRUSCO Orange Book.Com Cross-S", the company is advancing the integrated digitalization of order processing, inventory management, and logistics. In the first year of operation, increased commission fees and depreciation expenses will pressure profits, but the company aims for mid- to long-term operational efficiency and improved customer convenience.

The company is deepening its product database of approximately 4.27 million items built through collaboration with 3,762 suppliers, along with integration with customer systems, to strengthen commercial flow consolidation for online retail companies. It is expanding I-Pack® (high-speed automated packing and shipping line) installation sites from 5 locations, and promoting the use of "Niawase + Yuchoku" services to expand orders from online retail companies. In Q1 of FY2026 (ending December 2026), growth remained strong at 18.7% year-on-year.

By accelerating new installations of the "MRO Stocker" on-site tool storage placed within user factories, strengthening engagement with existing installation sites, and promoting the use of the "Yu-Cool" product pickup service at 56 nationwide locations, the company aims to internalize users' procurement operations, generating continuous sales and enhancing customer loyalty.

From July 2025, the company revised base salaries and increased housing allowances to secure and retain personnel and strengthen organizational capability. In the short term, increased personnel expenses (salaries and bonuses up 16.5% year-on-year) will pressure profits, but this is positioned as foundational groundwork for mid- to long-term business growth.

Last updated: July 17, 2026