KYOWAKOGYOSYO CO.,LTD.
5971・Standard Market・Metal Products
Business
KYOWAKOGYOSYO CO.,LTD. was founded in 1961 and is headquartered in Komatsu City, Ishikawa Prefecture, operating as a dedicated bolt manufacturer. The company provides integrated production—from raw materials through heat treatment—of hexagon bolts, shoe bolts, hexagon socket bolts, special bolts, and other products via cold forging and hot forging. The Construction Machinery segment accounts for approximately 95% of sales, with Komatsu Ltd. and Komatsu Logistics Corp. together representing approximately 37% of net sales. The company also operates in Automotive-Related Parts, Bolts for Industrial Machinery, and other segments, but these remain small in scale, meaning the company functions in practice as a specialized manufacturer for construction machinery applications. Within the group structure, subsidiary Kyowa Work Style Co., Ltd. handles plating processing, while equity-method affiliate Netsuren Komatsu Co., Ltd. handles induction hardening processing.
Business Model
By completing an integrated production system—from material procurement to forging, heat treatment, and inspection—within its own factories, the company achieves both quality control and cost management. Stable orders are secured based on a long-standing business relationship (since 1972) with its major customer, the Komatsu Ltd. group. Capital expenditure, centered on capacity expansion and maintenance/renewal, amounted to ¥220 million in FY2025. Backed by a debt-free management structure and a robust financial base with an equity ratio of 86.3%, the company self-funds its financing needs through cash on hand and operating cash flow.
Company Strengths
At the end of the fiscal 2025 period, the equity ratio stood at 86.3%, with net assets of ¥15,656 million (retained earnings of ¥13,918 million), reflecting debt-free management. The company holds ¥5,269 million in cash and deposits and ¥4,000 million in securities, giving it extremely high liquidity. It has set a target equity ratio of 80% or higher and has continuously achieved this target.
The company has an integrated production system encompassing cold forging and hot forging entirely in-house. In 1978, it received the "Komatsu Quality Control Award" as the first cooperating company of Komatsu Ltd., and in 1980 it received the "Deming Application Prize for Small and Medium Enterprises." It has also obtained ISO9001, ISO14001, and U.S. fastener quality law certifications, with its high level of quality control substantiated by these achievements.
Starting from a large order for track shoe bolts from Komatsu Ltd. in 1972, the company continues to maintain a stable relationship with key customers, including ¥2,335 million (22.3% of sales) from Komatsu Ltd. and ¥1,568 million (15.0% of sales) from Komatsu Logistics Corp. in FY2025 (ending March 2025), together accounting for 37.3% of sales.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥11,659 million in FY2022 (ending April 2022) before declining, but FY2026 (ending April 2026) achieved revenue growth for the first time in two periods, reaching ¥10,829 million (up 3.5% year on year). The Bolts for Construction Machinery segment led this growth at ¥10,373 million (up 3.7% year on year). Operating profit recovered significantly to ¥1,088 million (up 32.9% year on year), and the gross profit margin improved to 20.4% (from 19.0% in the previous period). While external factors such as continued increases in raw material and energy costs persisted, a gradual recovery in the domestic economy driven by a rebound in personal consumption and wage increases provided a tailwind. However, for FY2027 (ending April 2027), the company forecasts another sharp decline in operating profit to ¥720 million (down 33.8% year on year) due to the impact of China's economic slowdown and additional US tariffs, leaving uncertainty over the sustainability of the recovery.
Growth Strategy
Rebuilding a stable earnings base through rigorous cost management, strengthened production systems, and expansion into non-construction-machinery fields
Through compression of SG&A expenses (¥1,125 million in FY2026 (ending March 2026), down 4.0% year on year) and strengthened cost control, gross profit margin improved to 20.4%. The revision of the officer retirement benefit provision system also contributed to cost reduction. In FY2027 (ending March 2027), cost management will become even more important amid a phase of declining sales.
The company held securities of ¥5,199 million and investment securities of ¥3,380 million, recording interest income of ¥38 million and dividend income of ¥96 million (FY2026 (ending March 2026)). These holdings function as a stable source of financial income that complements fluctuations in the core business, and the policy of continued accumulation will be maintained.
The Automotive-Related Parts segment posted ¥102 million (down 2.4% year on year), the Bolts for Industrial Machinery segment posted ¥103 million (up 1.9% year on year), and the Other segment posted ¥250 million (up 0.3% year on year), for a combined total of only ¥455 million, representing just 4.2% of the overall total. Efforts to diversify away from dependence on construction machinery are ongoing, but concrete progress remains limited.
In FY2026 (ending March 2026), acquisition of tangible fixed assets amounted to ¥192 million (versus ¥134 million in the previous period), continuing capital investment. The company aims to maintain and improve production efficiency through the renewal of machinery, equipment, and vehicles. Against depreciation expense of ¥361 million, capital expenditure of ¥192 million remains at a restrained level for renewal investment.
Last updated: July 17, 2026