KYORITSU AIR TECH INC.
5997・Standard Market・Metal Products
Business
Kyoritsu Air Tech Co., Ltd. is an air-conditioning specialist manufacturer that produces and sells building air-conditioning and disaster-prevention equipment such as dampers, diffusers, and fas units, as well as residential products such as whole-house air conditioning systems and 24-hour ventilation systems. The company has built a group structure comprising multiple domestic factories and sales offices, a manufacturing subsidiary in China (Changshu Kuaifeng Air Conditioning Co., Ltd.), and a domestic air conditioning materials sales subsidiary (Mask Co., Ltd.). Its main customers are major building equipment and residential developers, centering on Sumisho Mainichi Machinex (13.5% of sales) and Hinokiya Group (12.4% of sales). The company's primary demand base consists of large-scale redevelopment projects in the Kinki and Chubu regions and the detached housing sale market. It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The Building Equipment segment supplies dampers, diffusers, VAV systems, and other products on a build-to-order basis, capturing capital expenditure demand from large-scale redevelopment projects and similar undertakings. The Residential Equipment segment mainly supplies whole-house air conditioning and ventilation systems on a build-to-forecast basis, securing stable earnings through continuous deliveries to homebuilders. The structure aims to reduce manufacturing costs by combining cost containment through overseas procurement of raw materials with parts manufacturing at the Chinese subsidiary. Against net sales of ¥11,923 million, operating profit was ¥598 million (operating margin of 5.0%).
Company Strengths
Through a two-axis structure combining the Building Equipment segment (Dampers ¥3,228 million, Diffusers ¥2,395 million, etc.) and the Residential Equipment segment (Whole-House Air Conditioning / Ventilation System ¥3,964 million), the company mutually offsets demand fluctuations in the construction market. In FY2025, the Residential segment remained resilient with a 1.6% increase year on year, partially covering intensifying price competition in the Building segment.
As of the end of the consolidated fiscal year, the company held a total of 239 industrial property rights (filed and valid) both domestically and overseas. It continues to develop products such as air conditioning units with induction functions for large spaces, self-standing variable airflow direction diffusers, and deep ultraviolet (UVC) space sterilization units, with the accumulation of proprietary technology serving as a foundation for differentiation from competitors.
At the end of FY2025, net assets stood at ¥9,862 million (up ¥767 million year on year), while against total assets of ¥15,701 million, liabilities were ¥5,838 million (down ¥594 million year on year), indicating high financial soundness. The company held cash and cash equivalents of ¥3,920 million, maintaining sufficient financial capacity to cover capital expenditures of ¥390 million with its own funds.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, revenue peaked at ¥11,897 million in FY2023, then moved sideways at ¥11,732 million in FY2024 and ¥11,923 million in FY2025. The full-year forecast for FY2026 (ending December 2026) points to a slight decline to ¥11,800 million. Meanwhile, in Q1 FY2026, revenue was ¥2,831 million (down 2.0% year on year), but gross margin improved due to reductions in cost of sales (curbing raw material procurement costs and reducing manufacturing man-hours), resulting in operating profit of ¥235 million (up 17.5% year on year) and ordinary profit of ¥241 million (up 16.5% year on year). As an external factor, continued weakness in detached housing starts due to rising mortgage interest rates and soaring materials costs has weighed on the residential ventilation business, while steady public and private capital investment has supported the building air conditioning business.
Growth Strategy
Aiming to improve profitability through a three-pronged approach: launching new products, expanding sales to the residential market, and reducing manufacturing costs
In addition to core products such as diffusers and Fas Units, the company is promoting sales of new products "Ea-Kurun" and "DESIX." It is strengthening its response to large-scale redevelopment and urban redevelopment projects in the building air conditioning market, aiming to improve unit prices and profit margins.
For residential whole-house air conditioning and ventilation systems such as "Kankimaru" and "Cool-Dan," the company is working to secure orders from existing customers among developers of built-for-sale housing and to strengthen web-based sales promotion. Maintaining and expanding the customer base remains a challenge amid the continued low level of housing starts.
Variable costs are being contained through expanded overseas procurement of raw materials and reduced labor hours. In the first quarter of FY2026 (ending March 2026), the cost of sales ratio improved year on year, enabling an increase in operating income despite a decline in sales. Continued improvement in the cost ratio is key to achieving the full-year targets.
From the first quarter of FY2026 (ending March 2026), the fiscal year-end of consolidated subsidiary Mask Co., Ltd. was changed from October 31 to December 31, aligning it with the consolidated fiscal year-end. This has enabled appropriate disclosure in the consolidated financial statements and improved management efficiency. Gains and losses arising from the change in fiscal year-end have been adjusted through retained earnings.
Last updated: July 17, 2026