Company Overview
1. Company Overview
Hashimoto Sogyo Holdings <7570> is a primary wholesaler of plumbing supplies and residential equipment. It specializes in water-related products, sourcing residential and construction materials such as pipes, sanitary ceramics, fittings, residential equipment, air conditioning equipment, and pumps from major manufacturers. It sells these materials to secondary wholesalers, construction stores, general contractors, and subcontractors nationwide. Its notable feature is the formation of a value chain that is strongly linked to suppliers such as manufacturers and secondary wholesalers, leveraging inventory, information, and distribution capabilities as a primary wholesaler. At present, it is strengthening its existing business and expanding into new areas such as building materials and electrical materials, which are in high demand from trading partners. It is also accelerating its overseas business.
The company started in 1890 when Hashimoto Kyujiro opened a personal shop in Kanda Iwamotocho, selling pipes and fittings. He laid the foundation for the company, which has a history of over 130 years, as a long-established wholesaler of plumbing supplies. The second generation, Seijiro, engaged in catalog sales and manufacturing of its own products as a manufacturing wholesaler. The third generation, Masao, who took over the company after the war, expanded the business as an authorized dealer for manufacturers. The current president, Masaki, the fourth generation, actively promotes management that responds to the new era based on activities such as regional sales, mergers and acquisitions, the use of IT technology and systems, entry into new business areas, and ESG activities based on the "HSDGCG activities" aimed at improving the satisfaction of trading partners such as manufacturers and sales outlets referred to as "best partners".
The company covers the entire country with a sales system organized by prefecture.
Group Structure 2.
The company group consists of the holding company, Hashimoto Sogyo Co., Ltd., and 10 consolidated subsidiaries and 6 non-consolidated subsidiaries as of the end of March 2024. Among them, Hashimoto Sogyo is the largest subsidiary with 46 sales bases nationwide (including the head office, 35 branch offices, 11 sales offices, and 5 centers). Other subsidiaries include Daimyo Koki Co., Ltd. with 16 bases nationwide, Wakamatsu Bussan Co., Ltd. with 2 bases in Aichi Prefecture, Yamato Co., Ltd. with 1 base in Osaka Prefecture, Eisho Yoko Co., Ltd. with 2 bases in Fukuoka Prefecture, Murabayashi Co. with 2 bases in Aomori Prefecture, Mirai Logistics Co., Ltd. with 1 base, Hashimoto Sogyo Facilities Co., Ltd. with 7 bases nationwide, and Sanseki Co., Ltd. (formerly Sansei Shoji Co., Ltd.) with 4 bases and 1 center in the Sanin region. By covering the entire country with a sales system organized by prefecture and closely aligning with construction sites and retail stores, the company accurately captures regional needs, leading to an expansion of market share. However, it can still be said that there is room for expansion in the Kanto to Tokai regions, even though there are relatively abundant bases.
Although each company's main business is the sale of piping materials, sanitary ceramics and fittings, residential equipment, and air conditioning equipment and pumps, each has its own characteristics. Hashimoto Sogyo has a wide range of products and functionality, and it is the leader and driving force for the group's growth. Daimyo Koki has a history of over 70 years and plays a significant role as a specialist trading company in various plant equipment and devices in the engineering industry. It has unique technologies such as assembly of automatic valves and various maintenance services and contributes to environmental improvement and energy conservation in all types of industrial plants. Wakamatsu Bussan specializes in the sale and installation of air conditioning equipment, Daikoku is engaged in the sale of steel pipes in the Kansai area, Hashimoto Sogyo Facilities handles transactions for general contractors and subcontractors, and Eisho Yoko, Murabayashi, and Sanseki are engaged in regionally focused sales leveraging their strong local presence. Furthermore, Hashimoto Sogyo and Japan Kenzai Co., Ltd., major building material trading companies in neighboring industries, have formed a business partnership between Hashimoto Sogyo and Japan Kenzai to mutually utilize management resources and expertise and collaborate on sales activities. In recent years, the group's activities have been revitalized, such as the launch of Mirai Logistics business in March 2021, the establishment of Hashimoto Sogyo (Thailand) Co., Ltd. in Thailand, business partnerships with Autotech <1736>, the establishment of Hashimoto Sogyo Facilities by integrating the special needs department in March 2023, and the acquisition of Sanseki based in the Sanin region.
(Author: FISCO guest analyst Nobumitsu Miyata)