ZAOH COMPANY, LTD.
9986・Standard Market・Wholesale Trade
Zao Sangyo Co., Ltd. (environmental cleaning equipment, etc.)
A single-segment company that imports and sells commercial and industrial cleaning and washing equipment manufactured in Europe, the U.S., and China
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, current fiscal year actual) | ¥8,757 million | ¥8,449 million | ↑ |
| Operating profit (full year, current fiscal year actual) | ¥1,016 million | ¥911 million | ↑ |
| Ordinary profit (full year, current fiscal year actual) | ¥1,042 million | ¥929 million | ↑ |
| Net income (full year, current fiscal year actual) | ¥718 million | ¥616 million | ↑ |
| Operating margin | 11.6% | 10.8% | ↑ |
| Equity ratio | 85.9% | 87.3% | ↓ |
| Return on equity (ROE) | 5.5% | 4.8% | ↑ |
| Earnings per share | ¥132.24 | ¥113.52 | ↑ |
| Cash and cash equivalents at period-end | ¥6,884 million | ¥6,761 million | ↑ |
| Annual dividend per share | ¥105.00 | ¥100.00 | ↑ |
Business Details
The company's principal business is importing commercial, industrial, and consumer cleaning and washing equipment (environmental cleaning equipment) manufactured to its own specifications by manufacturers in Europe, the U.S., China and elsewhere, and selling it nationwide in Japan. In addition to direct sales (demonstration sales) targeting the manufacturing and building maintenance industries, the company is expanding its distributor sales network, conducting OEM-based consumer wholesale sales, and providing after-sales service leveraging its nationwide network of offices. In the fiscal year under review, no single customer accounted for 10% or more of sales, reflecting further customer diversification.
Recent Overview
Increased sales and profit achieved across all product categories, led by a 21% rise in cleaning equipment; washing equipment sales declined
In FY2026 (ending March 2026), the company achieved increased sales and profit, with net sales of ¥8,757 million (up 3.6% year on year), operating profit of ¥1,016 million (up 11.5%), and net income of ¥718 million (up 16.6%). Cleaning equipment sales rose sharply to ¥1,779 million (up 21.1%), driven by solid sales of large ride-on cleaning machines and similar products. Washing equipment sales declined to ¥3,839 million (down 4.5%) due to competitor entry into the home rinser market and delays in new model introductions. Others (after-sales service, etc.) totaled ¥3,138 million (up 5.9%). Sales to Iris Ohyama, which accounted for 14.0% of net sales in the prior fiscal year, fell below 10% in the current fiscal year, reducing customer concentration risk. For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥9,310 million (up 6.3% year on year) and operating profit of ¥1,117 million (up 9.9%). The annual dividend is planned at ¥100 per share (the current fiscal year's dividend of ¥105 includes a ¥5 commemorative dividend for the company's 70th anniversary).
Key Products
Growth Drivers
- Expansion of cleaning equipment sales through continued capture of productivity improvement demand driven by labor shortages among manufacturing customers
- Expansion of the sales channel through seminars for distributors and users regarding new products such as floor washers for the building maintenance industry
- Acquisition of new customers through increased brand recognition and quality enhancement of mainstay original products (wholesale sales with exclusive distribution rights) supplied via OEM
- Stabilization of earnings and business expansion through increased sales of proprietary brand products
- Accumulation of earnings through enhanced proposal-based quotations for after-sales services (labor charges and parts sales) leveraging the nationwide sales network
- Acquisition of new customers through participation in various exhibitions and expansion of the distributor sales network
Risks
- Risk of market share erosion and intensifying price competition due to entry by competitors in consumer-oriented OEM products such as home rinsers
- Risk of rising import costs due to U.S. trade policy developments, exchange rate fluctuations, and geopolitical risks such as heightened tensions in the Middle East
- Risk of increased procurement costs due to surging energy and raw material prices
- Low capital efficiency, with ROE of only 5.5% (net income of ¥718 million against equity of ¥13,093 million)
- Risk of demand decline due to domestic economic downturn or reduced capital expenditure, given that over 90% of net sales are domestic
- Risk of delays in introducing new models (as exemplified by the home rinser case, a risk of sales decline due to failure in product cycle management)
Last updated: June 24, 2026