Shinko Wire Company, Ltd.
5660・Standard Market・Iron & Steel
Business
Kobelco Wire Company belongs to the Kobe Steel Group and operates three core businesses: the Specialty Steel Wire Related Business (PC steel wire, spring steel wire, etc.), the Steel Wire Rope Related Business (wire rope products), and the Engineering Related Business (suspension structure-related products, special products for bridges). Its main customers span the civil engineering, bridge, construction, automotive, and industrial machinery sectors, with sales through trading companies such as Shinsho Steel Sales and Metal One accounting for more than half of net sales. The company has a long history dating back to its founding in 1917, and has continued to expand its business base, including making Fivex Corporation a consolidated subsidiary in April 2025. In September 2026, the company is scheduled to become a wholly owned subsidiary of Kobe Steel through a share exchange, which is expected to result in delisting.
Business Model
A vertically integrated model in which key raw materials are procured from the parent company, Kobe Steel, via trading companies, and products are manufactured and sold in cooperation with group manufacturing and processing subsidiaries. Specialty Steel Wire Related Business accounts for approximately 54% of net sales, and Steel Wire Rope Related Business for approximately 41%, complemented by the Engineering Related Business. The SG&A ratio stands at a relatively high 15.3% (FY2026, ending March 2026), and improving the operating margin through price pass-through and productivity gains remains a key challenge in the earnings structure.
Company Strengths
The company has built a system for stably procuring key raw materials from its parent company, Kobe Steel, Ltd., giving it a structural advantage over competitors in securing stable raw material supply and quality control. The integrated supply chain within the group contributes to reducing raw material procurement risk and ensuring uniform quality.
With over 100 years of manufacturing know-how since its founding in 1917, R&D expenses for FY2026 (ending March 2026) totaled ¥610 million (Specialty Steel Wire Related Business: ¥326 million, Steel Wire Rope Related Business: ¥250 million, Engineering Related Business: ¥34 million). The company continues to develop higher-strength, higher-quality PC steel products and spring steel wire, high-performance and longer-life rope products, and disaster-prevention products such as seismic cable braces.
The equity ratio improved for three consecutive fiscal years, rising from 52.9% in FY2024 (ended March 2024) to 54.5% in FY2025 (ended March 2025) to 56.9% in FY2026 (ending March 2026). In FY2026 (ending March 2026), net assets stood at ¥25,386 million and borrowings at ¥10,276 million. The company maintains financial soundness, partly by utilizing sales of cross-shareholdings, and has a financial base capable of funding capital expenditures (totaling ¥1,329 million in FY2026 (ending March 2026)) from internal funds.
ENVALITH's Perspective
Performance Trend
Revenue grew for four consecutive periods, from ¥29,448 million in FY2022 to ¥34,293 million in FY2025, but turned to its first decline in FY2026, falling to ¥33,074 million (down 3.6% year on year). Operating profit also plunged to ¥653 million (down 44.0% year on year), near the lowest level in the five-period trend. The factors were: a decline in sales volume in the civil engineering/bridge, automotive, and printer fields; rising costs such as labor expenses; and the disappearance of the positive impact from inventory valuation that had occurred in the prior period. The Engineering Related Business fell into an operating loss of ¥161 million due to a decrease in public works orders and construction delays. On the other hand, as an external factor, extraordinary gains of ¥959 million were recorded, including the sale of policy-holding shares, hail damage insurance proceeds, and negative goodwill, resulting in net profit of ¥1,120 million, which exceeded the prior period.
Growth Strategy
Targeting ROIC of 5% or more through price pass-through, expansion of high-value-added products, and development of new energy fields, though a downward revision is suggested
Promoting price revisions across all segments in response to rising costs. During the fiscal year under review, despite price revision efforts, the decline in sales volume and cost increases outweighed these efforts, resulting in operating profit down 44% year on year, with limited effectiveness. Thorough implementation of price pass-through remains the top priority going forward.
In the Steel Wire Rope Related Business, promoting the development and market expansion of long-life, maintenance-free products and products for the new energy field. In the Specialty Steel Wire Related Business, continuing to strengthen the provision of products matching market needs and cultivate new fields. R&D expenses for the fiscal year under review were ¥610 million, an increase from the previous fiscal year.
Promoting the establishment of a supply system for large-scale new bridge construction projects, expansion of sustainability-contributing products and services for disaster prevention, mitigation, and resilience enhancement, and profitability improvement through price pass-through. During the fiscal year under review, due to a decline in public works orders and construction delays, the business fell into an operating loss of ¥161 million, making recovery an urgent priority.
Added one newly consolidated company (Fibex Co., Ltd.) during the fiscal year under review, expanding the business foundation. Recorded income of ¥105 million from the acquisition of subsidiary shares involving a change in the scope of consolidation in the statement of cash flows. Also recognized a gain on negative goodwill of ¥353 million as extraordinary income.
Entered into a share exchange agreement on May 11, 2026. Scheduled to become a wholly owned subsidiary of Kobe Steel on September 1, 2026 (planned), with delisting from the TSE Standard Market scheduled for August 28, 2026. Strengthening of the business foundation is expected through optimal utilization of group management resources.
Last updated: July 19, 2026