CHUGOKUKOGYO CO.,LTD.
5974・Standard Market・Metal Products
High-Pressure Equipment Business
The company's largest segment, centered on the manufacture and sale of LP gas cylinders and storage tanks
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) | ¥9,069 million | ¥9,421 million | ↓ |
| Segment profit (operating income) | ¥633 million | ¥718 million | ↓ |
| Segment assets | ¥5,559 million | ¥5,998 million | ↓ |
| Depreciation | ¥178 million | ¥198 million | ↓ |
| Increase in tangible and intangible fixed assets | ¥102 million | ¥177 million | ↓ |
| Share of consolidated sales | 65.9% | 68.1% | ↓ |
Business Details
This segment manufactures and sells high-pressure gas cylinders (for LP gas and general high-pressure gas), LP Gas Bulk Storage Tanks, LP gas equipment and storage tanks, and other high-pressure gas storage tanks, and also designs and constructs high-pressure gas-related facilities. In FY2026 (ending March 2026), sales to external customers were ¥9,069 million, accounting for 65.9% of consolidated total sales, making it the core business. The company has accumulated over half a century of technical expertise serving the LP gas industry and also undertakes plant construction work.
Recent Overview
Both sales and profit declined year on year due to a decrease in plant construction orders
In FY2026 (ending March 2026), sales to external customers decreased to ¥9,069 million (down ¥351 million, or 3.7%, year on year) due to a decline in plant construction orders, among other factors. Segment profit also fell to ¥633 million (down ¥84 million, or 11.8%, year on year). Note that in the prior fiscal year, actuarial differences related to retirement benefit obligations (¥114 million) were recorded as a one-time reduction in operating expenses, so part of the year-on-year decline in profit is attributable to this factor. Sales for FY2027 (ending March 2026 [2027]) are projected to recover to ¥9,250 million (up 2.0% year on year).
Key Products
Growth Drivers
- Continued replacement demand as LP Gas Bulk Storage Tanks exceed 20 years since installation
- Increased demand for LP Gas Cylinders due to conversion from bulk supply to cylinder supply
- Expansion into non-LP gas fields through acquisition of new customers for Special Gas Cylinders, including in the IT industry
- Rollout of new All-Plastic Composite Containers (Composite Cylinders) products
- Efforts to improve margins and earnings through price corrections in response to rising costs of key materials
- Outlook for a return to sales growth in FY2027 (ending March 2026 [2027]), driven mainly by LP Gas Cylinders (projected at ¥9,250 million)
Risks
- Long-term contraction in LP gas demand due to population decline and decreasing number of households
- Intensifying competition due to diversification of energy supply sources (e.g., electrification)
- Cost pressure from rising prices of steel and other materials, electricity costs, and freight charges
- Risk of fluctuations in orders for bulk storage tanks and plant construction (a decline in plant construction orders materialized in FY2026, ending March 2026)
- Uncertainty in the business environment due to concerns over procurement of petroleum-related products stemming from overseas conflicts
- Trend toward shrinking business scale, as reflected in the decline in segment assets (¥5,559 million, down ¥439 million year on year)
Last updated: June 24, 2026