NIPPON CHUZO K. K.

Business Details

A single segment comprising two divisions: Basic Materials (Cast Steel & Cast Iron Products) and Engineering (Steel Structures, Landscape Products, Bridge Bearings, etc.). Major customers are in construction machinery, semiconductor manufacturing equipment, and public infrastructure, with JFE Steel Corporation serving as both a major sales destination and a raw material supplier. In July 2025, the company absorbed and merged its consolidated subsidiary Dat Co., Ltd., integrating the steel structural products business. Results are currently disclosed on a non-consolidated (standalone) basis. FY2026 (ending March 2026) saw a decline in revenue with an increase in profit, as orders for semiconductor manufacturing equipment applications, driven by AI-related demand, increased significantly from the second half, with shipments accumulating for the next fiscal year.

Recent Overview

Revenue and profit diverged with extraordinary losses recorded, while the order backlog increased substantially due to AI-related demand

In FY2026 (ending March 2026), revenue was ¥12,290 million (down 8.8% year on year) and ordinary profit was ¥584 million (up 83.8% year on year), reflecting a decline in revenue alongside an increase in profit. There was a one-time factor of ¥200 million in dividend income received associated with the merger with Dat Co., Ltd., which boosted ordinary profit. Following the decision to remove equipment at the Ikegami site, the company recorded extraordinary losses totaling ¥454 million, including an impairment loss of ¥242 million and dismantling and removal costs of ¥180 million, resulting in net income of ¥154 million (down 19.8% year on year). On the other hand, orders for semiconductor manufacturing equipment applications surged from the second half due to AI-related demand, and the period-end order backlog accumulated to ¥9,062 million. For FY2027 (ending March 2027), the company forecasts revenue of ¥14,000 million and ordinary profit of ¥550 million.

Key Products

Growth Drivers

• A sharp increase in orders for cast steel products for semiconductor manufacturing equipment driven by AI-related demand, with full-scale shipments expected in FY2027 (ending March 2027)
• Improved profit margins through steady progress in rationalization and sales price revisions as planned
• Productivity improvements through DX initiatives such as the installation of large metal 3D printers and systemization investments
• Securing new projects such as bridge bearings for monorail tracks and expressways and building column bases for logistics warehouses
• Advancing business alliances and rationalizing costs such as logistics, outsourcing, and material expenses

Risks

• Normalization of demand following completion of the large-scale bridge bearing project in the Engineering division (revenue and profit both forecast to decline in FY2027, ending March 2027)
• Uncertainty regarding future semiconductor manufacturing equipment demand due to geopolitical risks, U.S. tariff policy, and U.S.-China trade friction
• Risk of rising procurement costs for materials and raw materials due to conflict in the Middle East
• Cost increases due to rising material and labor costs and fluctuations in energy prices
• Foreign exchange and interest rate fluctuation risk (increased interest expense: from ¥30 million in the prior period to ¥44 million in the current period)
• Potential for additional asset disposal and site restoration costs at the Ikegami site