FUJIMAK CORPORATION

Business Details

The Fujimak Group serves primarily the food service, lodging, and leisure industries, providing an integrated system spanning kitchen layout consulting through the development, manufacturing, sales, installation, and maintenance of kitchen equipment. Centered on a domestic direct-sales structure, the group also promotes overseas expansion focused on Asia through group companies in Singapore, China, Vietnam, and other locations. The company offers products such as Heating Equipment, Cooling Equipment, Washing & Sterilizing Equipment, and Service Equipment & Other Products, along with Maintenance & Repair Service.

Recent Overview

Q1 FY2026 revenue and profit both declined significantly year-on-year; increased SG&A expenses pressured earnings

For the first quarter of FY2026 (ending December 2026) (January to March 2026), revenue was ¥11,189 million (down 5.5% year-on-year), operating income was ¥792 million (down 18.8%), ordinary income was ¥786 million (down 23.3%), and quarterly net income attributable to owners of parent was ¥535 million (down 24.1%), with all metrics declining. Cost of sales decreased to ¥7,128 million from ¥7,759 million in the same period of the prior year, but selling, general and administrative expenses increased to ¥3,269 million (from ¥3,105 million in the same period of the prior year), which, combined with the decline in gross profit (¥4,061 million versus ¥4,081 million in the same period of the prior year), significantly pushed down operating income. Separately, the company has resolved to transfer rental real estate located in Shimbashi, Minato-ku, Tokyo (the company's portion: 123.84 sq. meters of land; subsidiary Epic's portion: 188.34 sq. meters of land), with delivery scheduled for May 29, 2026, and plans to record a gain on sale of fixed assets of ¥3,167 million as extraordinary income in the current consolidated fiscal year. Reflecting this, the full-year forecast for net income attributable to owners of parent is projected at ¥4,200 million (up 79.2% year-on-year), a substantial increase. There has been no revision to the full-year earnings forecast (revenue of ¥47,500 million, operating income of ¥3,100 million).

Key Products

Growth Drivers

• Steady demand for kitchen equipment from the food service, lodging, and leisure industries supported by expanding inbound consumption
• Increasing demand for labor-saving kitchen equipment amid labor shortages
• Strengthening overseas expansion focused on the Asian market (leveraging manufacturing and sales bases in Singapore, China, Vietnam, and other locations)
• Customer retention and value enhancement through an integrated system spanning kitchen layout consulting through maintenance
• Strengthened cost competitiveness and expanded production capacity through construction of a new plant (achieving the highest BELS rating)
• Strengthened financial position and effective use of management resources through the planned transfer of rental real estate in Shimbashi, Minato-ku, Tokyo (expected to record a gain on sale of fixed assets of ¥3,167 million)

Risks

• Risk that stagnant personal consumption due to price increases will suppress capital investment appetite in the food service industry and related sectors
• Risk that increased selling, general and administrative expenses (Q1 FY2026: ¥3,269 million, up 5.3% year-on-year) will continue to pressure operating margin
• Risk of a skewed weighting toward the second half in order to achieve the full-year forecast (¥47,500 million), given the ongoing revenue decline trend of down 5.5% year-on-year
• Risk of rising import parts costs due to prolonged yen depreciation and volatility in overseas subsidiaries' performance
• Impact on external demand slowdown and raw material procurement stemming from shifts in US trade policy and geopolitical tensions
• Risk of increased financial leverage and declining equity ratio (57.4% → 55.1%) due to increased long-term borrowings (fixed liabilities: ¥4,803 million → ¥6,299 million)