KOATSU GAS KOGYO CO., LTD.
4097・Prime Market・Chemicals
Business
Founded in 1958, Koatsu Gas Kogyo is a composite industrial gas and chemical products manufacturer, forming a group consisting of the company and 42 subsidiaries and 16 affiliated companies. In its core Gas Business, the company manufactures and sells various high-pressure gases such as Dissolved Acetylene, oxygen, nitrogen, argon, carbon dioxide gas, hydrogen, and specialty gases, as well as LP gas, gas-related equipment, and Containers. In the Chemical Products Business, the company manufactures and sells synthetic resin-based Adhesives, instant Adhesives, Coatings, and other products, serving a broad customer base spanning industries such as construction, automotive, electronics, medical, and food. The company has a manufacturing and sales subsidiary in Vietnam and also exports high-performance Adhesives to Europe and the United States. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
In the Gas Business, the company stably supplies cylinder gas through its own manufacturing sites and a nationwide network of sales subsidiaries and affiliates, generating composite revenue that also includes container leasing income (operating revenue). In the Chemical Products Business, in addition to in-house manufactured adhesives and coatings, the company also purchases and sells chemical products it handles, serving a diverse range of industries both domestically and overseas. Capital expenditure is allocated primarily to the renewal and enhancement of existing facilities, and the company maintains a stable financial policy funded through internal funds and long-term borrowings.
Company Strengths
Dissolved Acetylene has a high domestic market share and is positioned as a core business area, with a nationwide network comprising 7 manufacturing subsidiaries, 17 sales subsidiaries, and 2 transport subsidiaries. The regionally-focused sales capability cultivated through years of business activity continues to secure new and spot orders, forming a stable earnings base for the cylinder gas business.
Of net sales of ¥98,001 million, the Gas Business accounted for ¥72,797 million (approximately 74%) and the Chemical Products Business for ¥21,694 million (approximately 22%), forming a structure in which the Chemical Products Business complements fluctuations in industrial gas demand. In the Chemical Products Business, the company is advancing the development and expanded sales of value-added products such as high-performance adhesives for skin suturing for the US and European markets and environmentally friendly water-based adhesives, aiming to diversify earnings.
The equity ratio at the end of FY2026 (ending March 2026) improved to 68.2% from 64.1% in the previous fiscal year, with total net assets reaching ¥85,001 million. While steadily repaying long-term borrowings (¥5,040 million), the company also expanded fixed assets due to a rise in the market value of investment securities (an increase of ¥3,233 million). The ratio of cash flow to interest-bearing debt remained at a low 0.8x, indicating a high level of financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥82,113 million in FY2022 (ended March 2022) to ¥98,983 million in FY2025 (ended March 2025), but FY2026 (ending March 2026) saw its first revenue decline, coming in at ¥98,678 million (down 0.3% year on year). Operating profit was ¥5,871 million (down 1.6% year on year), and profit attributable to owners of parent was ¥4,661 million (down 2.5% year on year). External factors included a slowdown in the recovery of industrial gas demand from the steel, automotive, and construction sectors, persistently high raw material prices, and a decline in LPG import prices. On the other hand, ordinary profit increased to ¥6,951 million (up 4.6% year on year), supported by an improvement in non-operating income (an increase in dividends received and a decrease in non-operating expenses). Comprehensive income rose to ¥6,981 million (up 61.0% year on year), with a rise in the fair value of investment securities contributing significantly. For FY2027 (ending March 2027), the company forecasts revenue of ¥101,000 million (up 2.3% year on year) and operating profit of ¥5,900 million (up 0.4% year on year).
Growth Strategy
Pursuing five growth strategies based on the medium-term management plan "Change & Challenge Stage II"
A recovery in demand for hydrogen and specialty gases has been confirmed, particularly in semiconductor-related fields, and progress has also been made in acquiring customers among users of gas measurement equipment. Sales of argon increased for welding pipework and residential equipment applications. The company will continue to promote expanded sales of high value-added gases.
Strengthening of the production system at the Koka Plant, newly established in the previous fiscal year, has improved stable supply capability. The company is promoting the development of high value-added products such as environmentally friendly water-based adhesives and highly weather-resistant coatings. Increased sales in the healthcare field, including skin closure adhesives for the US and European markets, have been confirmed as results. However, the cost burden of the Koka Plant is putting pressure on profits, making profitability a key challenge.
The company continues to strengthen efforts to secure new and spot deals through community-based sales activities, while continuing to promote efficiency improvements in its production, sales, and logistics systems. Containers for fire extinguishing equipment applications performed steadily. Carbon dioxide gas achieved improved profitability through price revisions.
The annual dividend for FY2026 (ending March 2026) was raised to ¥40, double that of the previous fiscal year (payout ratio of 47.3%). The company has announced its policy to maintain the ¥40 dividend for FY2027 (ending March 2027) as well. Total dividends paid increased significantly to ¥2,208 million from ¥1,104 million in the previous fiscal year, clearly demonstrating the company's commitment to shareholder returns.
The company repaid ¥5,040 million in long-term borrowings, significantly reducing fixed liabilities. The equity ratio improved to 68.2% (from 64.1% in the previous fiscal year), and the ratio of cash flow to interest-bearing debt declined to 0.8x (from 1.8x in the previous fiscal year). While maintaining a robust financial base, the company also continued to make capital investments (acquisition of tangible fixed assets of ¥4,422 million).
Last updated: July 19, 2026