MORIYA TRANSPORTATION ENGINEERING AND MANUFACTURING CO.LTD

Business Details

A manufacturer specializing in freight elevators. In Japan, the company mainly manufactures, sells, and installs freight elevators (with mid-to-large-sized units of 2t or more load capacity as the mainstay) and marine elevators, and also operates maintenance & repair services. It covers the entire country with 2 factories, 10 branches, and 51 service locations, and operates the "Moriya Service Information Center" 24 hours a day, 365 days a year. The Haga Plant began operations in March 2026, expanding production and maintenance capacity. With a gross profit margin of 35.6% and an operating margin of 25.7%, the company is further strengthening its highly profitable business structure.

Recent Overview

Sharp increase in sales (up 21%) and operating income (up 48%); Haga Plant begins operations

In FY2026 (ending March 2026), the company achieved significant growth in both revenue and profit, with net sales of ¥23,589 million (up 21.4% year on year) and operating income of ¥6,071 million (up 48.3% year on year). This was driven by increased demand for high-value-added projects such as semiconductor factories, data centers, and refrigerated/frozen warehouses, as well as an expansion in the number of maintenance contracts. Gross profit margin improved from 31.8% to 35.6% through cost control and the promotion of in-house production. The Haga Plant began operations in March 2026, expanding production and maintenance capacity. The order backlog at period-end was substantial at ¥23,755 million (up 10.6% from the end of the prior period). A 1-for-2 stock split was implemented effective April 1, 2026. For FY2027 (ending March 2027), the company forecasts net sales of ¥25,400 million and operating income of ¥6,250 million.

Key Products

Growth Drivers

• Expansion of new installations driven by increased demand for high-value-added projects such as semiconductor factories, data centers, and refrigerated/frozen warehouses
• Continued growth in stable recurring revenue through the ongoing accumulation of maintenance and inspection contracts (7,727 units at period-end)
• Expansion of production and maintenance capacity through the Haga Plant, which began operations in March 2026
• Continued cost control through review of overseas procurement sources, parts review, and in-house production (gross profit margin improved from 31.8% to 35.6%)
• Significant increase in marine elevator order intake (up 140.7% year on year) and accumulation of order backlog
• Growth in repair projects against a backdrop of rising demand for "preventive maintenance"
• Continued expansion of construction and maintenance capacity through workforce increases

Risks

• Risk of delayed elevator construction starts due to construction schedule delays at general contractors caused by shortages of skilled technical labor
• Risk of rising resource and material prices and postponement of construction plans due to U.S. trade policy and escalating tensions in the Middle East
• Risk of decreased orders due to a leveling-off in demand for multi-tenant logistics facilities
• Risk of deteriorating cost ratio due to yen depreciation and rising costs of imported materials
• Risk of increased recruitment costs and delays in expanding construction and maintenance capacity due to intensifying competition for talent acquisition
• Decline in available liquidity due to a significant increase in cash flow used in investing activities (an outlay of ¥3,341 million) associated with the acquisition of the Fukuura No. 2 Plant (a product development site, etc.)