Chugai Mining Co.,Ltd.
1491・Standard Market・Nonferrous Metals
Business
Chugai Mining is a Tokyo Stock Exchange Standard Market-listed company founded in 1932, comprising the parent company and four subsidiaries. In its core precious metals business, the company collects scrap materials such as gold, silver, platinum, and palladium at nine locations nationwide, then refines and processes them at its Tokyo plant before sale. It also operates a machinery business, in which subsidiary INTECH Co., Ltd. handles the purchase and sale of used machine tools and sheet metal machinery, as well as a content business in which the parent company plans, manufactures, and sells toys and character merchandise. The precious metals business accounts for approximately 99% of net sales, with Mitsubishi Corporation RtM Japan and Asahi Pretec as major sales customers.
Business Model
In the precious metals business, the company collects scrap materials such as gold and platinum through 9 sales offices nationwide, refines them into bullion at the Tokyo plant's refining facility (capacity of 800kg of gold and 50kg of platinum per month), and sells the bullion to major trading companies and others. The company also seeks to diversify its sales channels by holding its own auctions. The machinery business supplements earnings through the purchase and sale of used machine tools, while the content business contributes through the planning and sale of character merchandise.
Company Strengths
The Tokyo Plant houses refining facilities with monthly production capacity of 800kg of gold and 50kg of platinum, and maintains a high plant utilization rate through active raw material collection via 9 sales branches nationwide. Precious metals business production volume in FY2026 (ending March 2026) expanded significantly, up 173.9% year-on-year, with the integrated collection-and-refining system serving as a source of competitive advantage.
Sales to Mitsubishi Corporation RtM Japan totaled ¥132,086 million (46.9% of net sales), while sales to Asahi Pretec totaled ¥115,291 million (40.9% of net sales), with these two companies together accounting for approximately 88% of sales, securing a stable customer base. The long-term business relationships reduce sales risk and enable stable cash conversion of large-volume refined products.
As a means of mitigating concentrated dependence on the two major trading companies, the company holds its own auctions to diversify sales channels. In the management policy stated in the securities report, holding auctions is positioned as a concrete measure to strengthen earnings power, and this initiative continues as an effort contributing to maintaining and enhancing sales negotiating power.
ENVALITH's Perspective
Performance Trend
Revenue expanded roughly 5.5-fold over five years, from ¥51,590 million in FY2022 (ended March 2022) to ¥84,823 million in FY2023 (ended March 2023), ¥113,759 million in FY2024 (ended March 2024), ¥162,345 million in FY2025 (ended March 2025), and ¥281,692 million in FY2026 (ending March 2026). Operating profit also renewed its all-time high in FY2026 (ending March 2026), reaching ¥2,446 million. The main external driver was the upward trend in gold prices amid U.S. trade policy and geopolitical risks. Return on equity improved to 17.3% (up from 15.9% in the prior period). However, the company forecasts a sharp decline in operating profit to ¥1,770 million (down 27.6% year on year) for FY2027 (ending March 2027), highlighting a risk of earnings reversal should elevated gold prices fail to persist.
Growth Strategy
Advancing both expansion of precious metal recycling production and sales channels, and recovery of profitability in the content business, as twin pillars of growth
Promoting expansion of recycling raw material collection volume by leveraging a nationwide sales network of 9 locations, alongside strengthening production capacity through capital investment at the Tokyo plant (buildings and structures increased substantially from ¥252 million to ¥1,768 million in FY2026 (ending March 2026)). Maintaining a high plant utilization rate serves as the foundation for business expansion.
Promoting expansion of proprietary e-commerce and direct sales channels to reduce dependence on consignment sales. In FY2026 (ending March 2026), a decline in sales through consignment sales partners led to a significant decrease in performance, with sales of ¥2,779 million (down 27.9% year on year) and operating profit of ¥217 million (down 74.9% year on year), putting the effectiveness of the channel reform to the test.
In addition to sales to major trading companies and smelters, promoting expansion of direct sales channels through proprietary auctions. Aiming to improve price negotiation power against precious metal market fluctuations and reduce risk through diversified sales channels. In FY2026 (ending March 2026), the precious metals business achieved record-high levels with sales of ¥278,161 million and operating profit of ¥2,809 million.
In FY2026 (ending March 2026), expenditure of ¥381 million was made for the acquisition of subsidiary shares, and the balance of investment securities increased from ¥110 million to ¥491 million. Other segment assets also expanded from ¥1,217 million to ¥2,769 million, advancing diversification of the business foundation including real estate, investments, and solar power generation.
Last updated: July 19, 2026