SHIMA SEIKI MFG.,LTD.

Business Details

The flagship segment of the Shima Seiki Mfg. group, engaged in the manufacture and sale of computerized flat knitting machines and semi-jacquard flat knitting machines. Products are manufactured at the Wakayama plant and sold to domestic and overseas customers either directly or via trading companies/agents. Overseas sales are handled by consolidated subsidiaries in Europe, the United States, Hong Kong, Italy, China, Spain, Thailand, Korea, and other regions worldwide. Asia (Bangladesh, China, etc.) and Europe (Italy, etc.) are the main markets. Sales for FY2026 (ending March 2026) were ¥23,866 million, accounting for 71.2% of consolidated net sales.

Recent Overview

Net sales increased 2.7% year on year to ¥23,866 million, and segment profit/loss turned positive.

Net sales in the Flat Knitting Machine Business for the full year FY2026 (ending March 2026) were ¥23,866 million (up 2.7% year on year). Segment profit was ¥2,559 million, a substantial turnaround from a loss of ¥5,019 million in the prior period. This was driven by the recovery in orders in Bangladesh and increased sales of WHOLEGARMENT® flat knitting machines in the Italian market, while in the Chinese market unit sales fell below the prior period, mainly among major Hong Kong-affiliated customers, and the delayed launch of the cost-performance shaping machine model caused sales to fall short of the initial plan. Leading indicators were weak, with orders received of ¥21,128 million (down 19.3% year on year) and order backlog of ¥3,954 million (down 40.9% year on year).

Key Products

Growth Drivers

• Recovery in orders following the normalization of the disruption caused by anti-government demonstrations in Bangladesh (increased unit sales of N.SVR®/N.SSR®)
• Signs of economic recovery in the European (Italian) market and increased sales of WHOLEGARMENT® flat knitting machines to luxury brands and suppliers
• Early rollout of the new cost-performance shaping machine model to markets, mainly in the Asia region
• Promotion of new product development and cost reduction matched to market needs under the "Revitalization of the Flat Knitting Machine Business," a key initiative of the medium-term management plan "Ever Onward 2026"
• Expanded sales to high-value-added markets and strengthened entry into non-apparel markets (industrial materials, lifestyle-related fields)
• Promotion of digitally integrated solutions leveraging domestic and overseas exhibitions and business meeting opportunities

Risks

• Leading indicators were significantly weak, with orders received down 19.3% year on year and order backlog down 40.9% year on year, creating downward pressure on next-period results
• Risk of continued weak unit sales in the Chinese market, mainly among major Hong Kong-affiliated customers
• Risk of falling short of sales plans if delays in the launch of the cost-performance shaping machine recur
• Reduced capital investment appetite among apparel brands due to economic slowdown and warm winter effects in Europe (Italy, Turkey, etc.)
• Global suppression of capital investment due to US trade policy (tariffs) and geopolitical risks in the Middle East and Ukraine
• Intensifying market share competition with competitors such as Chinese manufacturers
• Risk of additional recognition of inventory valuation losses and allowance for doubtful accounts (a substantial amount was recognized in the prior consolidated fiscal year)