HOKUETSU METAL Co., Ltd.
5446・Standard Market・Iron & Steel
Steel Business (Single Segment)
A Niigata-based electric furnace manufacturer engaged in the production and sale of steel products for construction
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year) | ¥23,598 million | ¥28,729 million | ↓ |
| Operating Profit (Full Year) | △¥309 million | ¥668 million | ↓ |
| Ordinary Profit (Full Year) | △¥201 million | ¥796 million | ↓ |
| Profit Attributable to Owners of Parent (Full Year) | △¥339 million | ¥572 million | ↓ |
| Operating Margin | △1.3% | 2.3% | ↓ |
| Equity Ratio | 69.3% | 66.7% | ↑ |
| Depreciation and Amortization (Full Year) | ¥1,062 million | ¥1,061 million | — |
| Cash Flow from Operating Activities | ¥1,664 million | ¥1,618 million | ↑ |
| Cash and Cash Equivalents at End of Period | ¥2,289 million | ¥2,238 million | ↑ |
| Net Assets per Share | ¥4,643.29 | ¥4,620.53 | ↑ |
Business Details
Hokuetsu Metal Co., Ltd. is a single-segment company whose sole business is the manufacturing, processing, and sale of steel products. It operates an integrated system spanning Material Products (Bar Steel, Wire Rod, Shape Steel) through to Processed Products (UHY Hoop, Fab Deck, Rock Bolt, etc.) for civil engineering and construction applications. Major customers are Itochu Marubeni Sumisho Techno-Steel Co., Ltd. (approximately 39.6% of sales), Hanwa Co., Ltd. (10.9%), and MM Kenzai Co., Ltd. (10.3%). Sales are completed entirely domestically, and the company is an electric furnace manufacturer based in Niigata Prefecture.
Recent Overview
A combination of sluggish demand for construction steel and soaring steel scrap prices pushed the company into an operating loss for the first time in two fiscal years
In FY2026 (ending March 2026), net sales fell to ¥23,598 million (down 17.9% year on year), and the company recorded an operating loss of ¥309 million (versus operating profit of ¥668 million in the prior fiscal year), a significant deterioration. Sales volume declined substantially due to delays and revisions to construction schedules caused by the labor shortage and rising construction costs in the construction industry, while sluggish steel market conditions and the surge in steel scrap prices from the latter half of the fiscal year directly hit profitability. Higher fixed cost burden due to lower production volume also contributed to rising manufacturing costs. For FY2027 (ending March 2027), the company expects net sales of ¥25,000 million, but forecasts a further widening of losses, with an operating loss of ¥900 million and a net loss of ¥800 million, due to the surge and continued high level of steel scrap and energy costs. The annual dividend was significantly reduced to ¥4.00 for FY2026 (ending March 2026) (from ¥45.00 in the prior fiscal year), and the dividend for FY2027 (ending March 2027) is currently undetermined.
Key Products
Growth Drivers
- Expanding sales in the processed products business (focusing on high-value-added products such as Fab Deck and Rock Bolt)
- Expanding sales of products for precast plants that address labor-saving needs at construction sites
- Managing and expanding the metal spread (the price difference between steel scrap purchase prices and product sales prices)
- Promoting measures to improve profitability based on the 'Medium-Term Management Plan 2027'
- Improving productivity through core system renewal and the implementation of IT and digital technologies at manufacturing sites
- Strengthening cost competitiveness through energy-saving capital investment and electric furnace renewal
Risks
- Prolonged sluggish demand for steel products due to labor shortages in the construction industry and persistently high construction costs
- Continued downward pressure on product sales prices due to weak steel market conditions
- Risk of fluctuations in the prices of main raw materials such as steel scrap (a surge continuing since the latter half of the fiscal year)
- Risk of a sharp rise and sustained high level of energy procurement costs
- Risk of spillover effects on global steel supply-demand balance and the global economy from U.S. trade policy (tariffs, etc.)
- Heightened geopolitical risk, including concerns over stable energy supply due to escalating tensions in the Middle East
- Risk of sales concentration in Itochu Marubeni Sumisho Techno-Steel Co., Ltd. (approximately 39.6% of net sales)
- Risk of increased fixed cost burden and rising manufacturing costs due to declining production volume
Last updated: June 23, 2026