ENVALITH
モリ工業株式会社 logo

MORY INDUSTRIES INC.

5464・Standard Market・Iron & Steel

Official website
モリ工業株式会社 logo
MORY INDUSTRIES INC.5464

Business

Mory Industries Co., Ltd. was founded in 1929 and is a specialized manufacturer of stainless steel-related products headquartered in Kawachinagano City, Osaka Prefecture. Its main products are Stainless Steel Pipes (for piping, automobiles, and decorative use), Stainless Steel Bars, Processed Stainless Steel Products (such as flexible pipes for water heaters), Steel Pipes (for temporary construction materials), and machinery such as pipe cutting machines. Domestically, the company itself along with its consolidated subsidiaries Mori Metal and Kanto Mory Industries handle manufacturing and processing. Overseas, its Indonesian subsidiary PT. MORY INDUSTRIES INDONESIA manufactures and sells Stainless Steel Pipes for motorcycle and automobile manufacturers, and the company also holds a 40% equity stake in and provides technical support to Auto Metal Company Limited in Thailand, an equity-method affiliate. Its major customers span a wide range of sectors, including automobile and motorcycle manufacturers, the construction industry, and housing equipment manufacturers. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company procures raw materials (nickel-based coil materials, etc.) and creates added value by conducting the pipe-forming, rolling, and processing stages in an integrated manner through itself and its subsidiaries. Products are sold for diverse applications including piping, automobiles, construction, and housing equipment, and the company maintains a diversified sales structure that avoids concentration of sales on specific customers (no customer accounts for more than 10%). The company aims to maintain and improve profitability through capital investment to enhance production efficiency and through the development and expanded sales of high-value-added products.

Company Strengths

The company has a system for consistently manufacturing a wide product line—Stainless Steel Pipes, Stainless Steel Bars, Processed Stainless Steel Products, Steel Pipes, and Machinery—within its own group. Capital expenditure for FY2026 (ending March 2026) reached ¥2,206 million, led by ¥1,233 million related to Stainless Steel Pipes, with continued investment in pipe manufacturing equipment renovation and labor-saving measures. Dependence on sales to any single customer is diversified at under 10%, resulting in low customer concentration risk.

The equity ratio as of the end of FY2026 (ending March 2026) stood at 80.5% (up 1.0 percentage point year on year), with net assets of ¥58,554 million. The company holds ¥15,876 million in cash and cash equivalents, and has also entered into commitment line agreements totaling ¥3,000 million. With a financial base that is nearly debt-free, the company has the financial strength to fund capital expenditure through retained earnings while continuing stable dividend payments.

With a history spanning over 95 years since its founding, the company's strength lies in its small-diameter pipe manufacturing technology for Stainless Steel Pipes. Domestically, it operates multiple plants in Kawachinagano, Mihara, Ibaraki, and Izumiotsu, while overseas it has a base in Indonesia and also provides technical support to Auto Metal Co., Ltd. in Thailand. Ongoing efforts toward technological innovation are evident, including the start of expanding flexible pipe products for water heaters to other manufacturers and the development of AI-based visual inspection equipment.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales came to ¥43,288 million (down 6.2% year on year) and operating profit to ¥4,378 million (down 18.9% year on year), representing a roughly 35% decline in operating profit from the FY2023 (ended March 2023) peak. In the analysis of factors behind the change in ordinary profit, a decrease in production value (including both volume and price) was a factor reducing profit by ¥1,191 million, an increase in fixed costs reduced profit by ¥232 million, and inventory valuation losses reduced profit by ¥212 million. External factors—sluggish demand stemming from labor shortages in the construction industry combined with an influx of low-priced imported materials—have compounded one another, and the forecast for FY2027 (ending March 2027) also points to a further decline in operating profit to ¥4,100 million (down 6.4% year on year). Identifying the timing of an earnings recovery is the focal point for investment decisions.

The Indonesia segment posted net sales of ¥1,804 million (down 14.0% year on year) and segment operating profit of ¥28 million (versus ¥56 million in the prior period, down 50.0% year on year), showing a rapid decline in profitability. For motorcycle-related products, structural declines in sales volume have occurred as some customers have begun in-house (internal) production, and in addition to external factors (a cooling of domestic demand in the automobile market), company-specific risks have become apparent. Although this segment's share of total company net sales is small at 4.2%, the decline in profit contribution and the expanding risk of customer in-house production warrant close attention as factors prompting a reassessment of the medium-term overseas growth scenario.

Capital expenditure in FY2026 (ending March 2026) expanded to ¥2,206 million, roughly double the prior period's ¥1,065 million, as production efficiency improvements and plant consolidation under MORY-PLAN26 move into full swing. The company has stated that it expects material prices to rise in the following period (FY2027, ending March 2027) and that passing this on to sales prices will be essential. In terms of the market environment, a phase of rising material prices could serve as a tailwind for price pass-through, but whether such pass-through can be realized amid ongoing competition from low-priced imported materials will be the turning point for earnings recovery. The full-year forecast for FY2027 (ending March 2027) calls for net sales of ¥44,300 million (up 2.3% year on year) and operating profit of ¥4,100 million (down 6.4% year on year), an outlook of higher sales but lower profit, making it necessary to continue monitoring the timing at which capital expenditure effects materialize and the progress of price pass-through.

Growth Strategy

Three pillars under MORY-PLAN26: high value-added product development, capital equipment renewal, and promotion of price pass-through

Capital expenditure for FY2026 (ending March 2026) expanded to ¥2,206 million (approximately double the previous fiscal year). Machinery, equipment and vehicles (net) increased ¥773 million year-on-year to ¥4,754 million. The company is advancing quality and cost competitiveness through renovation of pipe manufacturing equipment and plant consolidation, with depreciation expense also trending upward to ¥1,176 million (¥1,085 million in the previous fiscal year).

The company has clearly stated that as it anticipates rising material prices in FY2027 (ending March 2027), passing these costs through to selling prices is essential. With increases also expected in auxiliary material costs such as personnel expenses, transportation costs, and packaging materials, achieving price pass-through for the cost increases is key to maintaining profitability. In FY2026 (ending March 2026), a decrease in the variable cost ratio was a factor boosting profit by ¥384 million, confirming some results from cost management efforts.

In the Processed Stainless Steel Products segment, sales of flexible pipes for water heaters recovered in FY2026 (ending March 2026). The company is promoting the development and expanded sales of high value-added products based on MORY-PLAN26, aiming to improve profitability through differentiation from general-purpose products. However, segment sales of Processed Stainless Steel Products in FY2026 (ending March 2026) were ¥963 million (down 4.1% year-on-year), as declines in other processed products offset the recovery.

To address the structural decline in sales volume caused by customers' in-house production of motorcycle-related products, the company has begun local research aimed at expanding its product lineup into new fields beyond automotive products. It is also working to strengthen its sales support structure and reduce costs through improved manufacturing efficiency. Segment operating profit for FY2026 (ending March 2026) fell sharply to ¥28 million (down 50.0% year-on-year), making an early recovery in profitability a key challenge.

Last updated: July 19, 2026