IBOKIN Co.,Ltd.
5699・Standard Market・Iron & Steel
Business
IBOKIN Corporation is a comprehensive recycling company operating three business segments: demolition work for building structures and plants (Demolition Business), industrial waste intermediate processing and recycled resources sales (Environmental Business), and collection, processing and sales of ferrous and non-ferrous scrap (Metal Business). With its main base in the Kinki and Chugoku areas, the company aims to expand its business nationwide across Japan through an alliance network of approximately 30 companies. Its main customers include manufacturers, construction companies, medical device makers, and major leasing companies, and as an "urban mining development company," it captures demand for renewal of social infrastructure built during Japan's period of high economic growth. In January 2025, the company made Mitsue Co., Ltd. a subsidiary, expanding its construction capabilities in the Demolition Business. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company provides a vertically integrated 'one-stop service' whereby it receives orders for demolition and removal work from customers (Demolition Business), sorts and processes the industrial waste generated on-site at its own intermediate processing plants to sell as recycled resources (Environmental Business), and processes ferrous and non-ferrous scrap at its own plants for shipment to steelmakers and other buyers (Metal Business). A distinctive feature of this structure is its ability to capture three layers of revenue—construction contract revenue, waste processing commission revenue, and recycled resource sales revenue—from a single project. Permits and licenses required under the Waste Management Act, together with the specific construction business license, form barriers to entry.
Company Strengths
The Demolition Business, Environmental Business, and Metal Business work organically together, establishing a system capable of handling everything from factory and warehouse demolition to waste treatment, valuable resource purchasing, and resource recovery for customers in an integrated manner. The ability to respond to complex needs, such as capturing lease asset disposal projects through tie-ups with major leasing companies and asset management firms, serves as a differentiating factor from competitors.
The company has already obtained the Specified Construction Business License required to serve as the prime contractor for large-scale demolition projects with subcontract order amounts of ¥45 million or more. As of the end of December 2025, the group had 10 first-class construction management engineers on staff, giving it a rare capability within the industry to simultaneously execute multiple large-scale construction projects. The consolidation of Mitsue Co., Ltd. as a subsidiary in January 2025 further expanded its construction execution capabilities.
Since its founding in 1973, the company has established a stable regional collection base through more than half a century in the metal scrap business. It has built long-term relationships of trust with steel manufacturers, including being designated as a direct supplier to Nippon Steel Corporation's (formerly Nippon Steel & Sumitomo Metal Corporation) Hirohata Works in 2003. In addition, through its alliance network with approximately 30 leading recycling companies nationwide, it has the capability to handle projects on a nationwide scale.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods maintained an expansionary trend, growing from ¥8,433 million in FY2021 to ¥10,006 million in FY2025. The full-year forecast for FY2026 (ending December 2026) is ¥10,500 million (up 4.9% year on year). On the other hand, operating profit, which peaked at ¥799 million in FY2024, declined to ¥643 million in FY2025, and profit continued to fall in Q1 of FY2026 (ending December 2026) as well, coming in at ¥269 million (down 7.8% year on year). An increase in selling, general and administrative expenses (up ¥62 million year on year) and a sharp rise in interest expenses (up approximately ¥9 million year on year) put pressure on earnings. As an external factor, the sustained high level of ferrous scrap prices has supported revenue growth in the Metal Business and Environmental Business, but a decline in new construction starts has weighed on profits in the Demolition Business.
Growth Strategy
With the Demolition Business as its growth engine, the company is expanding its comprehensive recycling business through M&A, nationwide expansion, and capital investment
By continuing to increase the number of construction supervisors (38 as of the end of the first quarter of FY2026 (ending December 2026)) and expanding the application of a new construction method (patent pending) for high-difficulty projects, the company aims to increase the number of prime contractor orders for large-scale and high-difficulty projects. In the first quarter of FY2026 (ending December 2026), net sales declined 30.1% year-on-year due to a decrease in new construction starts, but the success of the new construction method helped secure a 17.8% year-on-year increase in operating profit. The order backlog stood at ¥1,019 million.
In January 2025, the company made Mitsue Co., Ltd. a subsidiary, strengthening the construction capacity and order-taking capability of the Demolition Business. The company also leverages synergies with Kokutoku Kogyo Co., Ltd. to enhance the overall strength of the group's Demolition, Environmental, and Metal businesses. It is necessary to continue tracking the integration effects of the Mitsue subsidiarization, which recorded a gain on negative goodwill of ¥63 million in the same period of the previous year.
Utilizing an alliance network of approximately 30 companies nationwide, the company is deploying a one-stop service that provides demolition, waste processing, and scrap sales in an integrated package on a nationwide scale. In the first quarter of FY2026 (ending December 2026), the company continued new sales activities leveraging collaboration among the three businesses, with intersegment internal sales of ¥115 million reflecting this actual state.
The company continues capital investment, including an increase in machinery, equipment, and vehicles (¥774 million as of the end of the first quarter of FY2026 (ending December 2026), up ¥24 million from the end of the previous fiscal year), to expand processing capacity and improve production efficiency in the Metal Business and Environmental Business. Depreciation expense increased from ¥77 million in the same period of the previous year to ¥106 million in the current period, indicating a phase of active investment.
Last updated: July 17, 2026