KANEFUSA CORPORATION
5984・Standard Market・Metal Products
Business
Kanefusa Corporation, founded in 1948, is a specialist manufacturer of industrial machine blades, with Flat Blades, Precision Cutting Tools, and Circular Saws as its three core product categories. Centered on its domestic base (Oguchi Town, Aichi Prefecture), the company has built a group structure of 10 consolidated subsidiaries, with manufacturing bases in Indonesia, China, and Vietnam, and sales and Regrinding Service bases in the United States, Europe, Brazil, India, and Mexico. It supplies blades to a wide range of manufacturing industries including woodworking, plywood, papermaking, automotive, steel, and packaging, and maintains ongoing customer contact through its Regrinding Service. Consolidated net sales for FY2026 (ending March 2026) were ¥20,948 million. The company is listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange.
Business Model
The Japanese head office supplies raw materials and semi-finished products, while manufacturing subsidiaries in Indonesia, China, and Vietnam handle production, forming an "optimal global division of production" system. Finished products are delivered to regional markets through sales subsidiaries in the United States, Europe, Brazil, and other regions. In addition to sales, the company maintains ongoing customer relationships through its Regrinding Service. The cost of sales ratio stood at 70.1% (FY2026, ending March 2026), with control of selling, general and administrative expenses and improvements in production efficiency serving as key factors for enhancing profit margins.
Company Strengths
Beginning with entry into Indonesia in 1986, the company progressively expanded into China, Vietnam, the United States, Europe, Brazil, India, and Mexico. Through a structure of 10 consolidated subsidiaries, it has built a system capable of completing everything from manufacturing to sales and Regrinding Service within the group, giving it geographic and organizational advantages that competitors cannot easily replicate in a short period.
Regrinding Service is offered at sales sites in the United States, Brazil, Vietnam, India, Mexico, and elsewhere, securing regular customer contact points as blades wear down through use. This mechanism enables continuous revenue accumulation and deeper customer relationships that go beyond one-time product sales.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 81.6% (79.4% in the previous period), with cash and cash equivalents of ¥7,885 million. Total liabilities were reduced to ¥7,064 million, giving the company the financial flexibility to fund capital expenditures and expansion into emerging markets from its own resources. Repayment of long-term borrowings is also progressing steadily.
ENVALITH's Perspective
Performance Trend
Revenue has remained flat, moving from ¥19,669 million in FY2022 (ending March 2022) → ¥21,119 million in FY2023 (ending March 2023) → ¥20,081 million in FY2024 (ending March 2024) → ¥20,232 million in FY2025 (ending March 2025) → ¥20,947 million in FY2026 (ending March 2026). Operating profit peaked at ¥1,766 million in FY2022 (ending March 2022), then declined for four consecutive periods before rebounding to ¥1,090 million in FY2026 (ending March 2026), up 45.9% year on year. The main drivers of this recovery were the effect of business restructuring at the Chinese subsidiary (operating loss of ¥308 million in the previous period turning into operating profit of ¥6 million in the current period) and expanded sales to Europe (up 17.3% year on year). As an external factor, foreign exchange gains of ¥200 million also boosted ordinary profit (¥1,344 million, up 90.1% year on year). On the other hand, net income for the period was limited to ¥1,031 million (up 4.8% year on year), as the absence of the ¥957 million gain on sale of fixed assets recorded in the previous period led to a significant contraction in extraordinary income.
Growth Strategy
Strengthening the global earnings base through capacity expansion at the Vietnam production facility and sales expansion in non-residential and European markets
Promoting the full-scale operation of the Vietnam facility, where a large-scale capital investment of ¥2,038 million was made in the previous fiscal year. The Vietnam segment's sales in FY2026 (ending March 2026) expanded to ¥1,506 million (up 13.8% year on year), and the company aims to strengthen cost competitiveness through increased supply within the Group.
A strategy to offset declining demand for housing-related cutting tools through sales expansion of non-residential related cutting tools. In FY2026 (ending March 2026), increased sales of domestic non-residential related cutting tools secured a 0.6% year-on-year increase in Japan segment net sales. The company will continue to focus on the non-residential market.
The Europe segment performed well, with net sales of ¥2,289 million (up 17.3% year on year) and operating profit of ¥41 million (up 59.0% year on year), driven by an increase in Woodworking-Related Cutting Tools. The company will continue to strengthen its presence in Europe and other overseas markets by leveraging stable procurement from Group production bases.
The business structure reforms implemented in the previous fiscal year proved effective, and the China segment turned profitable in FY2026 (ending March 2026), moving from an operating loss of ¥308 million to an operating profit of ¥6 million. Recovery in demand for woodworking- and automotive-related cutting tools also provided a tailwind, and the stabilization of the earnings base is progressing.
Last updated: July 19, 2026