DAIKEN CO.,LTD.

Business Details

Manufactures, sells, and installs Architectural Hardware (Hanger Rails, etc.), Exterior Products (Bicycle Racks, Storage Sheds, etc.), and Exterior Building Materials (Using Aluminum Extrusions). This is the core business, accounting for 98.5% (Q1 FY2027 (ending February 2027)) of consolidated net sales. The main customer is Sugita Ace Co., Ltd. (approximately 19.8% of net sales). The domestic construction market is the primary market, with products widely supplied for multi-unit residential buildings, public works, and corporate capital investment. The company is building a collaborative framework with Miki Seisakusho Co., Ltd., which became a subsidiary in June 2025.

Recent Overview

Due to increased fixed costs, Q1 operating income was limited to ¥50 million, resulting in a consolidated operating loss after deducting company-wide expenses.

In Q1 FY2027 (ending February 2027) (March to May 2026), segment net sales were ¥2,724 million, and segment profit (operating income) was ¥50 million. While orders increased for bicycle racks for multi-unit residential buildings and interior building materials such as pits and gratings, increased fixed costs from investment in the Muroran plant and rising costs of raw aluminum ingots and naphtha-related auxiliary materials pressured profit margins. After deducting company-wide expenses (¥104 million), the consolidated operating loss was ¥33 million. Year-on-year comparison is not disclosed as this is the first year following the transition to consolidated reporting.

Key Products

Growth Drivers

• Capturing demand for exterior products such as bicycle racks and garbage collection sheds for multi-unit residential buildings and public works
• Strengthening sales and production capabilities and creating synergies through building a collaborative framework with Miki Seisakusho Co., Ltd.
• Reducing transportation costs and improving production efficiency through enhanced in-house production and local production for local consumption at the Muroran plant
• Reducing costs through system unification and operational consolidation
• Expanding into new markets and strengthening PR for new products through participation in new exhibitions
• Increasing market recognition and developing overseas markets for new-field products such as Maintenance Rail

Risks

• Increased manufacturing costs due to persistently high prices of raw materials such as aluminum ingots and yen depreciation
• Cost pressure from continued price increases in naphtha-related auxiliary materials
• Supply instability of materials and auxiliary materials, and occurrence of construction delays or postponements due to factors such as the situation in the Middle East
• Decline in profit margin due to increased fixed costs associated with investments such as the Muroran plant
• Increased selling, general and administrative expenses due to rising prices for labor costs, logistics costs, etc.
• Slowing sales of kerosene tanks and storage sheds due to weakening new detached housing starts
• Intensifying price competition in exterior building materials