ENVALITH
クラスターテクノロジー株式会社 logo

CLUSTER TECHNOLOGY CO., LTD.

4240・Standard Market・Chemicals

Official website
クラスターテクノロジー株式会社 logo
CLUSTER TECHNOLOGY CO., LTD.4240

Business

Cluster Technology Co., Ltd. develops, manufactures, and sells high-precision, high-functionality resin products centered on five core technologies: resin composite material technology, molding processing technology, mold technology, measurement and analysis technology, and integration technology. In its core Nano/Micro Technology-Related Business, the company supplies precision molded products for digital cameras, industrial inkjet printer heads, and parts for leisure equipment, while in its Macro Technology-Related Business, it provides Resin Molded Insulators (Epoxy Insulators) and Functional Resin Composite Materials for power distribution and transmission equipment. Major customers are heavy electrical equipment and precision instrument manufacturers reached through trading companies such as Nagase & Co., Kuroda Electric, and Nagase Electronics, and the company has established an integrated production system across two sites: the Kanto Plant (Ibaraki Prefecture) and the Kansai Plant (Higashiosaka City, Osaka Prefecture).

Business Model

A build-to-order manufacturing business model that completes everything in-house, from developing Functional Resin Composite Materials tailored to customer specifications through mold design, molding processing, post-processing, and quality assurance. Vertical integration of materials, molds, and molding secures proposal capability and speed, achieving a gross profit margin of 42.1% (FY2026 (ending March 2026)) for high-value-added products. Customer development is pursued through both trading company channels and in-house sales, advancing the capture of new models from existing customers alongside the acquisition of new customers.

Company Strengths

The company possesses in-house resin composite material technology, molding and processing technology, mold technology, measurement and analysis technology, and integration technology, enabling consistent production from material development through molds, molding, post-processing, and quality assurance. The gross profit margin for FY2026 (ending March 2026) remained at 42.1%, with the value-add generated by technology integration directly contributing to profitability.

In the Macro Technology-Related Business, the company has established its position as the only manufacturer in Japan capable of consistent production of Resin Molded Insulators (Epoxy Insulators). It has a delivery track record of over 50 years with heavy electrical equipment manufacturers, occupying an irreplaceable supplier position. In FY2026 (ending March 2026), sales in this business increased 21.9% year on year to ¥225 million, while the order backlog expanded 151.2% year on year.

The medium-term management plan formulated in May 2023 (final year FY2027, ending March 2027) targeted net sales of ¥1,260 million and operating income of ¥120 million. In FY2026 (ending March 2026), the second year of the plan, the company achieved net sales of ¥1,299 million and operating income of ¥164 million, surpassing both the sales and profit targets ahead of schedule. High factory utilization rates and a product mix with higher profit margins contributed to this achievement.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥1,299 million (up 27.0% year on year) and operating profit reached ¥164 million (up 51.0% year on year), both record highs. However, for FY2027 (ending March 2027), the company forecasts net sales of ¥1,292 million (down 0.6% year on year) and operating profit of ¥70 million (down 57.2% year on year), a substantial profit decline. The factors behind this decline are threefold: (1) deterioration in sales mix (including a decrease in the industrial equipment field), (2) a sharp increase in depreciation expenses (from ¥68 million to a projected ¥115 million) associated with capital expenditure of ¥389 million (more than triple the previous fiscal year), and (3) increased labor costs from stepped-up hiring. While this can be viewed as upfront costs for growth investment, the timing and scale of the resulting investment returns warrant careful monitoring.

By major customer, net sales in FY2026 (ending March 2026) were ¥417 million from Nagase & Co. (32% of net sales), ¥414 million from Kuroda Electric (32% of net sales), and ¥142 million from Nagase Electronics (11% of net sales), with the top three customers accounting for approximately 75% of total net sales. In addition, the industrial equipment field (industrial inkjet printer heads), which drove the substantial increase in revenue this period, is expected to decline in FY2027 (ending March 2027), meaning the structure whereby demand fluctuations in specific fields directly affect business performance remains unchanged. Diversifying the customer base and progress in developing new business will be key to stabilizing performance over the medium to long term.

Against the final-year target of the medium-term management plan (FY2025 (ending March 2025) through FY2027 (ending March 2027)) of net sales of ¥1,260 million and operating profit of ¥120 million, actual results for FY2026 (ending March 2026) came in at net sales of ¥1,299 million and operating profit of ¥164 million, exceeding the final-year target one year ahead of schedule. On the other hand, the projected operating profit of ¥70 million for FY2027 (ending March 2027) falls substantially short of the final target of ¥120 million. This is explained as being due to more aggressive growth investment, but the fact that the investment plan has expanded to more than triple the amount envisioned last May indicates a high degree of variability in the plan, calling for a cautious assessment of the reliability of the forecast.

Growth Strategy

Aiming to enhance corporate value over the medium to long term through a three-pronged approach: large-scale investment in the Kanto Plant, strengthened personnel recruitment, and new customer development

Capital investment of ¥389 million is planned for FY2027 (ending March 2027) (approximately 3.2 times the previous fiscal year's actual figure of ¥121 million). In addition to replacing aging equipment and enhancing capacity, an extension of the Kanto Plant building is also under consideration. As a result, depreciation expense is expected to increase from ¥68 million to ¥115 million, but the company aims to build a foundation for medium- to long-term sales growth through expanded production capacity.

The company is pursuing an increase in manufacturing personnel in connection with the large-scale investment in the Kanto Plant, an increase in engineers and sales personnel to strengthen customer proposal capabilities, and an increase in personnel to strengthen administrative systems in connection with the listing on the TSE Standard Market. Labor costs and recruitment agency fees are expected to increase, but the company aims for sustainable growth by raising overall organizational capability.

The company is promoting the sharing and visualization of the number of customer visits and progress status, and is conducting active order-taking activities through both its own efforts and collaboration with trading companies. Participation in exhibitions (N-PLUS 2025, New Functional Materials Expo 2026) will also continue. Sales of the Nano/Micro Technology-Related Business grew approximately 1.5-fold, from ¥718 million at the start of the medium-term plan to ¥1,063 million in FY2026 (ending March 2026).

Factoring in sales from newly developed customers in recent years, sales of the Macro Technology-Related Business for FY2027 (ending March 2027) are forecast at ¥260 million (up 15.4% year on year). As the only integrated manufacturer of resin molded insulators in Japan, the company will strengthen order acquisition by capitalizing on the tailwind of rising supply chain and geopolitical risks.

Last updated: July 19, 2026