ENVALITH
三ツ星ベルト株式会社 logo

Mitsuboshi Belting Ltd.

5192・Prime Market・Rubber Products

Official website
三ツ星ベルト株式会社 logo
Mitsuboshi Belting Ltd.5192

Business

Mitsuboshi Belting Ltd. is a belt-specialized manufacturer founded in 1919 and headquartered in Kobe. The Group consists of four segments—Domestic Belts, Overseas Belt Business, Construction Materials, and Others—manufacturing and selling a diverse range of products including automotive timing belts, power transmission belts for industrial machinery, conveyor belts, and waterproofing sheets. The Group comprises 25 consolidated subsidiaries and operates manufacturing and sales bases across India, the United States, Thailand, Indonesia, China, Europe, and other regions worldwide. Its major customers span a wide range of industries, including automobile manufacturers, agricultural machinery manufacturers, the logistics industry, and the construction and civil engineering industries. Consolidated net sales for FY2026 (ending March 2026) reached ¥92,298 million.

Business Model

The company employs a vertically integrated model, supplying products through a sales network centered on Mitsuboshi Belting Sales Co., Ltd. domestically, and through regional manufacturing and sales subsidiaries overseas. Automotive Belts and Power Transmission Belts (for Industrial Machinery) account for approximately 87% of sales, securing stable demand through the two axes of new vehicle demand and replacement demand. The Domestic Belts segment maintains a high segment profit margin of 25.3%, with technological capabilities backed by R&D expenditure of ¥3,332 million serving as the source of profitability.

Company Strengths

In FY2026 (ending March 2026), the Domestic Belts business achieved net sales of ¥28,975 million, segment profit of ¥7,338 million, and a profit margin of 25.3%. Product deployment across diverse applications, including Power Transmission Belts (for Industrial Machinery) for agricultural machinery and robots, and Resin Conveyor Belts for logistics, underpins this highly profitable structure, backed by an accumulation of material and evaluation technologies that are difficult for competitors to imitate.

The company operates manufacturing and sales subsidiaries across India, the United States, Thailand, Indonesia, China, Europe, and other regions worldwide, with overseas sales of ¥50,787 million accounting for approximately 55% of consolidated net sales. Sales of electrification-compatible products, such as timing belts for driving EPS and other electric units, and rear-wheel drive belts for electric two-wheelers, remained robust, and overseas segment profit for FY2026 (ending March 2026) expanded to ¥4,474 million, up 36.2% year on year.

At the end of FY2026 (ending March 2026), the equity ratio stood at 78.2% (up from 74.7% in the previous fiscal year), with net assets of ¥101,619 million. Against interest-bearing debt of ¥2,674 million, cash and cash equivalents totaled ¥25,844 million, maintaining an effectively debt-free position. The company stably generated operating cash flow of ¥10,310 million, demonstrating financial strength sufficient to fund large-scale capital expenditures (¥10,042 million in the current fiscal year) with its own funds.

ENVALITH's Perspective

In FY2026 (ending March 2026), segment profit for Overseas Belts improved significantly, rising 36.2% year on year to ¥4,474 million, while Domestic Belts declined 8.8% year on year to ¥7,338 million and Construction Materials fell sharply by 87.4% year on year to ¥88 million. The main causes were a decline in sales of genuine repair parts for Domestic Belts, and labor shortages at construction sites combined with a decrease in large-scale construction projects for Construction Materials. Companywide operating profit came to only ¥8,678 million, down 2.8% year on year, reflecting a structure in which strength overseas offset weakness domestically.

Net income attributable to owners of parent came to ¥7,392 million (versus ¥9,060 million in the previous fiscal year), a decrease of 18.4%. The main causes were the disappearance of the ¥1,051 million relocation compensation recorded in the previous fiscal year, and the shrinking of gain on sale of investment securities from ¥3,453 million to ¥1,203 million. Meanwhile, ordinary profit improved 11.2% year on year to ¥10,178 million, aided by the recording of ¥484 million in foreign exchange gains, and attention should be paid to the divergence between underlying strength at the ordinary profit level and net income. The dividend payout ratio rose to a high level of 72.5%.

The company's forecast for FY2027 (ending March 2027) is net sales of ¥95,000 million (up 2.9% year on year), operating profit of ¥8,800 million (up 1.4% year on year), ordinary profit of ¥8,700 million (down 14.5% year on year), and net income of ¥9,000 million (up 21.8% year on year). While the substantial recovery in net income is premised on the normalization of extraordinary gains and losses, the forecast of a significant 14.5% decline in ordinary profit reflects uncertainty in the external environment, including foreign exchange assumptions (¥150/US dollar, a yen appreciation of ¥0.8 versus the previous fiscal year) and trends in interest rates and raw material costs. Attention should also be paid to the fact that the company itself has explicitly stated that geopolitical risks, including US tariff policy and the situation in Iran, could have a material impact on business performance.

Growth Strategy

Toward the final year of the '24 Mid-Term Management Plan, the company is pursuing a three-pronged approach combining electrification-compatible products, capital investment, and shareholder returns.

The company is actively rolling out electrification-compatible products, such as belts for EPS drive systems in four-wheeled vehicles and belts for rear-wheel drive systems in electric two-wheeled vehicles, in overseas markets. In FY2026 (ending March 2026), Overseas Belts segment profit increased significantly by 36.2% year on year, confirming the effectiveness of the strategy.

The increase in tangible and intangible fixed assets in the Domestic Belts segment expanded significantly to ¥7,573 million in FY2026 (ending March 2026), up from ¥2,835 million in the previous fiscal year. The net amount of buildings and structures increased from ¥9,330 million to ¥13,090 million, reflecting progress in strengthening the production base.

The annual dividend for FY2026 (ending March 2026) was ¥191 per share (an increase from ¥186 in the previous fiscal year), with total dividends paid of ¥5,365 million. The company also conducted share buybacks totaling ¥1,000 million. A dividend of ¥191 per share is also planned for FY2027 (ending March 2027) (dividend payout ratio of 59.2%). The company has maintained its commitment to shareholder returns by continuing to increase dividends even amid a decline in net income.

Construction Materials segment profit for FY2026 (ending March 2026) fell sharply to ¥88 million (down 87.4% year on year), mainly due to labor shortages at construction sites and a decrease in large-scale construction projects. Water treatment plant-related construction in the civil engineering waterproofing field contributed to revenue growth, and capturing demand from public infrastructure projects remains a key challenge for recovery.

In August 2024, the company introduced a stock-granting ESOP trust to implement measures aimed at raising employees' awareness of management participation and motivating them to contribute to improved business performance. As of the end of the current fiscal year, the trust held 56,283 remaining shares with a book value of ¥226 million. This initiative is positioned as one of the KPIs of the '24 Mid-Term Management Plan under the company's human capital strategy.

Last updated: July 19, 2026