Takihyo Co., Ltd.
9982・Standard Market・Wholesale Trade
Business
Takihyo Co., Ltd. is a long-established textile trading company founded in 1751, listed on the Standard Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange. In its core apparel and textile-related business, the company plans, manufactures, and wholesales women's, baby, and kids' clothing along with textiles centered on wool fabrics, with major mass-retail chain customers led by Shimamura Co., Ltd. In addition, it operates a leasing business covering real estate rental and equipment leasing, a materials business selling synthetic resins and chemical products, and other businesses including logistics outsourcing and food service franchising. The company has five domestic consolidated subsidiaries and a local subsidiary in Shanghai, China, and has internalized overseas production management and quality control functions.
Business Model
Apparel and textile-related businesses account for approximately 84% of net sales, with a wholesale model based on buy-and-sell transactions as the core approach. Sales to Shimamura Co., Ltd. (36.6% of net sales in FY2025, ended February 2025) form the core of the earnings base, centered on large-scale transactions with mass merchandise chains. The real estate leasing business generates high profitability and stable cash flow, with net sales of ¥917 million against operating profit of ¥576 million (a margin of approximately 63%). The materials business achieves high capital efficiency, with profit of ¥335 million against assets of ¥2,167 million. The company thoroughly pursues profit-focused sales operations with an emphasis on ROIC, aiming to firmly establish a profitable business structure.
Company Strengths
In FY2025 (ended February 2025), sales to Shimamura Co., Ltd. amounted to ¥22,201 million (up 14.5% year on year), accounting for 36.6% of consolidated net sales. The company has been expanding transactions by leveraging its strength in flexible response to demand-driven orders (short lead-time fulfillment), with long-term relationships of trust with major customers serving as the foundation for stable earnings.
The leasing business is a highly profitable segment, generating net sales of ¥917 million against operating profit of ¥576 million (a profit margin of approximately 63%). Of the segment's total assets of ¥18,494 million, land assets account for ¥16,671 million, providing financial stability backed by latent asset value. Demand for intra-group equipment leasing also continues to serve as a steady source of earnings.
After posting an operating loss of ¥2,228 million in FY2022 (ended February 2022), the company implemented a three-year "Revitalize Plan," carrying out workforce and site downsizing along with withdrawal from unprofitable businesses. It achieved consecutive profit growth, with operating profit of ¥1,312 million (up 85.1% year on year) in FY2025 (ended February 2025) and ¥1,942 million in FY2026 (ended February 2026), exceeding the plan's targets.
ENVALITH's Perspective
Performance Trend
Following structural reforms since bottoming out with an operating loss of ¥2,228 million in FY2022 (ending March 2022), the company achieved a record-high operating profit of ¥1,942 million in FY2026 (ending March 2026). In Q1 of FY2027 (ending February 2027) (March–May 2026), net sales were ¥17,656 million (up 3.0% year on year), operating profit was ¥815 million (up 0.2%), ordinary profit was ¥811 million (up 1.9%), and quarterly net profit attributable to owners of the parent was ¥659 million (up 0.4%), maintaining a trend of higher sales and profits. However, external factors such as continued yen depreciation, persistently high logistics costs, and rising personnel expenses have pushed up SG&A expenses, and growth rates have decelerated significantly from the same period last year. The full-year forecast (net sales of ¥64,800 million, operating profit of ¥1,950 million, up 1.3% and 0.4% year on year, respectively) remains unchanged. Comprehensive income improved substantially to ¥226 million from ¥31 million in the same period last year (a rebound from the sharp deterioration in deferred hedge gains/losses in the prior year).
Growth Strategy
Under the medium-term management plan "Create Future with Passion," the company is advancing strengthening of the core wholesale business, expansion of the Materials business, and shareholder returns of ¥500 million or more.
Responding flexibly to customers' short-lead-time needs by leveraging production know-how and an extensive production base. In Q1 of FY2027 (ending February 2027), the Apparel/Textile-related business secured external customer sales of ¥15,388 million (up 0.2% year on year), but segment profit came to ¥447 million, down 21.6% year on year, indicating a need to strengthen cost absorption capacity.
Promoting development of new sales channels and appropriate price pass-through in synthetic resin and chemical product sales. In Q1 of FY2027 (ending February 2027), the business achieved external customer sales of ¥1,775 million (up 38.6% year on year) and segment profit of ¥211 million (up 171% year on year), with a profit margin of approximately 11.9%, contributing significantly to maintaining the group's overall profit level. Characterized by high capital efficiency owing to its asset-light model.
Continuing business review based on ROIC criteria under the medium-term management plan. As a result of withdrawal from unprofitable businesses and structural reform effects, profits recovered from a significant loss in FY2022 to the highest profit level in five periods. In Q1 of FY2027 (ending February 2027), all segments remained profitable, indicating that the effects of structural reform are taking hold.
Promoting shareholder returns combining the projected annual dividend of ¥50 per share for FY2027 (ending February 2027) (up ¥5 year on year) with share buybacks. In Q1, share buybacks of ¥200 million were carried out (approximately 4.3 times the amount in the same period of the previous year), and combined with dividend payments of ¥212 million, returns are being accelerated. This demonstrates a proactive stance toward achieving ¥500 million or more in returns for the full year.
Last updated: July 17, 2026