Bando Chemical Industries, Ltd.
5195・Prime Market・Rubber Products
Business
Bando Chemical is a rubber and plastic products manufacturer founded in 1906, comprising four segments: the Automotive Parts Business, whose mainstay is power transmission belts for automobiles and motorcycles (approximately 50.7% of revenue); the Industrial Materials Business, covering industrial power transmission belts and conveyor belts (approximately 32.5%); the High-Performance Elastomer Products Business, encompassing Functional Film Products and Precision Functional Components (approximately 12.1%); and Other Businesses, including Robot-Related Devices, Medical Devices / Healthcare Equipment, and Electronic Materials (approximately 5.8%). The company has 21 domestic and overseas subsidiaries and 9 equity-method affiliates, and operates manufacturing and sales bases across Asia, Europe, the Americas, the Middle East, and other regions worldwide. Its major customers span a wide range, including automobile and motorcycle manufacturers, industrial machinery makers, and the aftermarket.
Business Model
A manufacturing business model built around the company's proprietary transmission belt technology and patents, selling products manufactured at domestic and overseas production sites to automotive OEMs, industrial machinery, and the repair market. The company also grants technology licenses to affiliated companies in Taiwan, the Philippines, Malaysia, Indonesia, and other locations, earning royalty income. By expanding sales to the repair market (aftermarket), the company enhances earnings stability against economic fluctuations, while diversifying revenue sources through new businesses such as Electronic Materials and Medical Devices / Healthcare Equipment.
Company Strengths
The company has over 18 overseas subsidiaries across Asia, Europe, the Americas, and the Middle East, having built local production and local sales systems. It also secures royalty income through technology licensing agreements (patent and know-how licensing) with affiliated companies in Taiwan, the Philippines, Malaysia, Indonesia, and other locations. Over 100 years of manufacturing track record and technical accumulation since its founding in 1906 form a barrier to competitive entry.
The company has four segments—Automotive Parts Business, Industrial Materials Business, High-Performance Elastomer Products Business, and Others—diversified across automotive OEM, aftermarket, industrial machinery, agricultural machinery, Electronic Materials, and other areas. In FY2026 (ending March 2026), all four segments achieved revenue growth, and the High-Performance Elastomer Products Business turned profitable, swinging from a loss of ¥15 million in the previous period to a profit of ¥433 million. Sales dependence on any specific customer is kept below 10%.
In the final year (FY2026, ending March 2026) of CV-1, which covers fiscal years 2023 through 2026, the company achieved revenue of ¥119,257 million (0.6% below the target of ¥120,000 million) and ROE of 12.1% (0.1 percentage point above the 12.0% target). Operating cash flow reached ¥15,592 million, and interest-bearing debt was reduced to ¥5,229 million (down 26.7% year on year), also improving financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥93,744 million in FY2022 (ending March 2022) to ¥119,257 million in FY2026 (ending March 2026). Operating profit fell sharply in FY2025 (ending March 2025), down 55.2% year on year to ¥3,480 million, but recovered strongly to ¥12,073 million in FY2026 (ending March 2026). This recovery was mainly driven by a sharp decline in impairment losses, which fell from ¥5,942 million in the prior period to just ¥242 million in FY2026 (ending March 2026), alongside an improvement in core operating profit on an underlying basis, which rose 23.3% year on year to ¥9,551 million. As an external factor, yen depreciation (based on an assumed rate of ¥150 to the US dollar) also boosted the yen-denominated value of overseas revenue. Profit attributable to owners of parent reached ¥10,568 million, the highest level in the past five fiscal years.
Growth Strategy
Under the mid- to long-term management plan CV-1, the company is pursuing dual growth pillars: deepening the existing transmission belt business and cultivating new businesses such as Electronic Materials and Medical Devices / Healthcare Equipment
The company continues to increase the number of vehicle models adopting Auxiliary Drive Transmission System Products domestically, while expanding sales of products for the aftermarket in Europe and Asia. In FY2026 (ending March 2026), revenue reached ¥60,397 million and core operating profit reached ¥5,682 million, up 4.0% and 16.0% year on year respectively, progressing steadily.
The company is promoting expanded sales of belts for agricultural machinery, light-conveyance belts, and synchronous belts in priority markets, along with strengthening production capacity and competitiveness through additional capital expenditure (¥2,475 million in FY2026, ending March 2026). Core operating profit in FY2026 (ending March 2026) improved significantly to ¥3,264 million (up 28.4% year on year), with the profit margin also rising to 8.4%.
The company is promoting expanded sales of value-added products such as decorative display films and high-performance rollers, along with cost improvements through the creation of smart manufacturing. In FY2026 (ending March 2026), the segment achieved a return to profit with segment profit of ¥433 million, but the profit margin remained low at approximately 3.0%, and sustained profitability improvement remains a challenge.
The company is promoting expanded sales of new products such as the optical transparent adhesive sheet "Free Crystal®," the high thermal conductivity sheet "HEATEX®," the swallowing motion monitor "B4S™," and the resorbable bone regeneration material "e=Bone®." Revenue in Other Businesses grew to ¥6,954 million in FY2026 (ending March 2026), up 14.1% year on year, but core operating profit declined 18.1% year on year to ¥242 million, indicating that profitability remains a work in progress.
The annual dividend for FY2026 (ending March 2026) was significantly increased to ¥120 per share (ordinary dividend of ¥60 plus a commemorative dividend of ¥20 for the 120th anniversary of the company's founding, plus an interim dividend of ¥40), up sharply from ¥76 in the previous fiscal year. The forecast for FY2027 (ending March 2027) is ¥100 (after the lapse of the commemorative dividend). Share buybacks also continued (¥2,044 million in FY2026, ending March 2026), resulting in a dividend payout ratio of 46.8% and a dividend-to-equity attributable to owners of the parent ratio of 5.7%.
Last updated: July 19, 2026