JUNTENDO CO.,LTD.
9835・Standard Market・Retail Trade
Business
Juntendo Co., Ltd. is a regionally focused home center operator founded in 1894, headquartered in Masuda City, Shimane Prefecture. The company operates 122 stores (as of end-February 2025) across nine prefectures in the Chugoku region (Shimane, Tottori, Yamaguchi, Okayama, Hiroshima) and the Kinki region (Hyogo, Kyoto, Wakayama, Nara). With "specialty stores for agriculture, gardening, materials, hardware, tools, and workwear" as its core business, the company is strengthening its provision of production materials for farmers and construction industry professionals. It plays a role as living infrastructure in regional cities, mountainous areas, and remote islands, and is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company's primary revenue source is operating revenue, combining net sales (merchandise sales) and operating income (tenant rent, etc.). Operating revenue for FY2026 (ending March 2026) was ¥44,376 million (net sales of ¥43,483 million, operating income of ¥893 million). The company promotes store openings and renovations based primarily on stores of 300 to 1,000 tsubo, with three segments — agriculture and horticulture (26.4% of sales), construction/DIY (26.5%), and household goods and appliances (27.0%) — accounting for approximately 80% of sales. The company differentiates itself through customer retention via a point card membership program and services such as repair, rental, and technical support.
Company Strengths
Founded in 1894, originating in Masuda City, Shimane Prefecture, with a history spanning over 130 years. Operates 99 stores across the 5 prefectures of the Chugoku region (Hiroshima 31, Yamaguchi 23, Shimane 18, Okayama 13, Tottori 12), having become established as regional infrastructure. Hiroshima Prefecture alone accounts for 26.7% of net sales (¥11,849 million), and the company is promoting a region-by-region dominant strategy.
In March 2024, the company entered into a business alliance with the Shimane Prefecture Agricultural Cooperative (JA Shimane), and in September of the same year concluded a comprehensive alliance agreement with the National Federation of Agricultural Cooperative Associations (JA Zenno). It has also entered into sales and purchase agreements with JA Hiroshima City and JA Zenno Hiroshima, aiming to strengthen the product lineup and customer base of its Agriculture and Horticulture segment (net sales of ¥11,707 million, 26.4% of total).
In FY2026 (ending March 2026), although net sales decreased 0.6% year on year, gross margin improved to 29.7% (up 0.4 percentage points year on year) due to markup improvements. Selling, general and administrative expenses also decreased 0.6% year on year, resulting in operating profit of ¥473 million, up 48.1% year on year. The improvement in the profit structure is progressing.
ENVALITH's Perspective
Performance Trend
Sales revenue declined for five consecutive periods, from ¥44,335 million in FY2022 to ¥42,111 million in FY2026. In Q1 of FY2027 (ending February 2027), revenue was ¥11,737 million (down 2.3% year on year), continuing the declining sales trend. On the other hand, operating profit rose sharply to ¥552 million (up 17.0% year on year). This was mainly driven by improved gross margin through markup improvements and a ¥132 million year-on-year reduction in SG&A expenses. As an external factor, price increases on daily necessities due to inflation and yen depreciation have heightened consumers' cost-saving orientation, leading to a decline in customer traffic; sluggish gardening-related sales due to unfavorable weather and intensifying price competition in pet supplies also weighed on revenue. Agricultural machinery, air conditioners, and petroleum-derived products remained solid. On the financial side, total assets stood at ¥42,799 million, net assets at ¥12,920 million, and the equity ratio at 30.2%.
Growth Strategy
Strengthening specialization and recovering profitability through focus on agriculture and horticulture, JA cooperation, logistics reorganization, and AI utilization
Initiatives to improve gross profit margin through product mix review and better purchasing terms. In Q1 FY2027 (ending March 2027), the company secured gross profit of ¥3,619 million despite a decline in net sales, and combined with SG&A cost reductions, achieved a 17.0% year-on-year increase in operating profit.
Enhancing the specialized lineup of agricultural materials and customer loyalty through cooperation with Shimane Prefecture Agricultural Cooperatives (JA) and the National Federation of Agricultural Cooperative Associations (Zen-Noh). In Q1, horticulture-related sales were sluggish due to poor weather, but agricultural machinery remained steady.
Aiming to improve delivery efficiency and achieve structural reductions in SG&A expenses through reorganization of logistics bases. This may have contributed to some extent to the SG&A expense reduction in Q1 (down ¥132 million year on year), although details were not disclosed.
Aiming to increase purposeful store visits and visit frequency, and to differentiate from competitors, through the development of qualified personnel such as DIY advisors and green advisors, and the expansion of stores with repair staff.
Promoting company-wide operational efficiency and more sophisticated decision-making through AI utilization and renewal of the core system. Specific progress was not disclosed in this quarter's earnings report.
Fixed cost burden reduced through the closure of unprofitable stores conducted in the previous fiscal year. In the current Q1, this was not enough to offset the decline in sales caused by the closures, making it a factor in the sales decrease, but it is contributing to margin improvement.
Last updated: July 17, 2026