ENVALITH
天龍製鋸株式会社 logo

Tenryu Saw Mfg. Co., Ltd.

5945・Standard Market・Metal Products

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天龍製鋸株式会社 logo
Tenryu Saw Mfg. Co., Ltd.5945

Business

Tenryu Saw Mfg. Co., Ltd. is a saws-and-blades specialist manufacturer founded in 1913, with Tipped Saw for Housing Materials as its core product. The company operates a total of five plants — two domestic sites (Shizuoka and Fukuoka), two sites in China, and one in Thailand — and, through six consolidated subsidiaries, conducts global business operations spanning China, the United States, Europe, Thailand, India, and Mexico. Major customers include power tool and building materials manufacturers such as Makita Corporation (21.9% of net sales), and the company supplies products to a wide range of industries, primarily through OEM supply. Consolidated net sales for FY2025 totaled ¥13,475 million.

Business Model

The company produces saw blades at manufacturing bases in Japan, China, and Thailand, and supplies regional markets through domestic sales as well as sales subsidiaries in the United States, Europe, Asia, and Mexico. The China base also handles internal transfers to the Japan segment (¥3,488 million), forming a division-of-labor manufacturing structure within the group. With a cost-of-sales ratio of 65.9% and an operating margin of 12.9%, the company maintains a manufacturing-type earnings structure and preserves financial soundness by funding capital expenditure and R&D with internal resources.

Company Strengths

Since its founding in 1913, the company has maintained integrated production as a specialist manufacturer of saws and blades. It operates a total of five plants—two in Japan, two in China, and one in Thailand—and is advancing product consolidation and automation tailored to the characteristics of each site. With a track record of technological leadership, including being the first in the industry to be designated a JIS-marked factory (1950), the company has accumulated manufacturing know-how that competitors find difficult to replicate in a short period.

Sales to Makita Corporation reached ¥2,944 million (21.9% of net sales) in FY2025, up from ¥2,666 million (20.3%) in the previous fiscal year. The ongoing business relationship with this major power tool manufacturer forms a stable order base and demonstrates the company's reliability and high quality standards as an OEM supplier.

As of the end of FY2025, against total assets of ¥42,895 million, total liabilities amounted to only ¥3,802 million, resulting in a solid financial foundation with net assets of ¥39,093 million. Working capital, capital expenditures (¥467 million for the fiscal year), and R&D expenses (¥103 million) are all funded through internal resources, establishing a management structure that does not rely on external borrowing.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company secured revenue growth to ¥13,475 million (up 2.6% year on year), but operating profit declined to ¥1,735 million (down 5.0% year on year). Soaring raw material costs, rising personnel expenses, and expanding SG&A expenses (¥2,855 million, up 3.6% year on year) squeezed profits. The operating margin fell to 12.9% (13.9% in the previous period), highlighting the need for stronger cost management. A point of concern is that all three segments—Asia, United States, and Europe—saw profit declines.

The company's forecast for FY2027 (ending March 2026) calls for revenue of ¥14,000 million (up 3.9% year on year) and operating profit of ¥1,820 million (up 4.9% year on year), representing an increase in both revenue and operating profit. On the other hand, ordinary profit is expected to decline to ¥2,120 million (down 3.2% year on year) and net profit to decline to ¥1,480 million (down 2.4% year on year). A contraction in financial income is expected to weigh on ordinary profit. Given the high uncertainty surrounding the external environment, including U.S. tariff policy and geopolitical risks, achieving the forecast remains uncertain.

Against net assets per share of ¥4,376.83, return on equity (ROE) remains at a low level of 4.0% (4.2% in the previous period). While the balance of investment securities has swelled to ¥12,392 million, shareholder returns have been maintained at a certain level, with a dividend payout ratio of 50.3% and an annual dividend of ¥85. However, even including share buybacks (¥313 million), a fundamental improvement in capital efficiency has not been achieved, and the company continues to face scrutiny over its policy for utilizing held assets.

Growth Strategy

Toward the final year of the mid-term plan, the company is advancing three key pillars: environmental response, decarbonization, and strengthening global sales

The company is promoting "development of new products contributing to reduced environmental impact" as a key strategy. Leveraging steady demand for Tipped Saw for Housing Materials, it aims to strengthen its sales and technical support framework for environmentally friendly products in global markets to expand sales. The target is net sales of ¥14,000 million for FY2027 (ending March 2027).

The company is promoting new capital investment aimed at reducing CO2 emissions and establishing a decarbonized production system. The increase in tangible and intangible fixed assets for FY2026 (ending March 2026) was ¥467 million (up from ¥399 million in the previous fiscal year), reflecting expanding investment. This is positioned as a key initiative for the final year of the mid-term management plan (FY2026).

The company has set the realization of human capital management and well-being management as a key initiative for the final year of the mid-term management plan. It has newly introduced a stock-based compensation system (with ¥21 million recorded as an expense in FY2026, ending March 2026) to strengthen investment in human resources. Salaries and allowances also increased to ¥887 million (from ¥865 million in the previous fiscal year).

Last updated: July 19, 2026