KIMURA KOHKI Co.,Ltd.
6231・Standard Market・Machinery
Business
KIMURA KOHKI Co.,Ltd. was founded in 1945 and, since establishing its plate fin heater/cooler manufacturing process in 1952, has specialized for approximately 80 years in the manufacturing and sale of commercial air conditioning equipment. Its core products include Chilled/Hot Water Air Handling Units (AHU), Fan Coil Units (FCU), air-cooled heat pump outdoor air processing units, and factory zone air conditioners. Its customer base spans a wide range of sectors, including office buildings and commercial facilities (commercial sector), factories (industrial sector), and hospitals, schools, and hotels (healthcare sector), supplying products to end-user building owners through general contractors and subcontractors. The company operates primarily on a build-to-order basis, with a system that incorporates roughly 2,000 customer requests per year into product development. It listed on the Second Section of the Tokyo Stock Exchange in 2020 and transitioned to the Standard Market in 2022.
Business Model
The company's basic approach is build-to-order production tailored to each customer's specifications, achieving a high gross margin by focusing sales on proprietary products (high-performance type) with superior control functions and energy-saving performance. The sales department handles quantity estimation work itself, and by placing sales engineering departments at major locations, the company strengthens its technical proposal capabilities. The operating margin for FY2026 (ending March 2026) reached 25.6% (up 2.7 percentage points year on year), with a sales mix centered on proprietary products underpinning this high-profitability structure.
Company Strengths
The company holds proprietary technology backed by patents, such as oval tube heat exchangers (oval coils) and diagonal flat oval tube heat exchangers, achieving product differentiation that is difficult for competitors to imitate. Furthermore, it possesses the technical capability to develop control systems in-house tailored to air conditioning equipment, and in January 2026 developed the "KD-type Air Conditioning Control Panel" capable of centrally managing up to 930 units. The high-performance type, with excellent control functions and energy-saving performance, has received high praise in the market.
The operating margin for FY2026 (ending March 2026) was 25.6% (a 2.7-point improvement year on year). Net sales expanded approximately 1.76-fold over four years, from ¥10,200 million in FY2022 (ended March 2022) to ¥17,922 million in FY2026 (ending March 2026), while operating profit increased approximately 4.2-fold over the same period, from ¥1,089 million to ¥4,589 million. A sales mix centered on proprietary products and value-added capture through build-to-order production support this high-profitability structure.
The six-year redevelopment construction at the Yao Plant was completed in March 2026, establishing a manufacturing base with cumulative investment of ¥8,621 million. In January 2026, the Yao Technical Research Center was opened, serving as a base for developing products compatible with new refrigerants and advancing control system sophistication. A technical research institute is also under construction at the Kawage Plant (scheduled to begin operation in October 2026), and this two-site R&D structure is a source of competitiveness.
ENVALITH's Perspective
Performance Trend
Net sales increased for five consecutive periods: ¥10,200 million in FY2022 → ¥11,703 million in FY2023 → ¥13,853 million in FY2024 → ¥16,042 million in FY2025 → ¥17,922 million in FY2026. Operating profit expanded at an accelerating pace over the same period: ¥1,089 million → ¥1,573 million → ¥2,679 million → ¥3,676 million → ¥4,589 million. The operating margin improved substantially, from 10.7% in FY2022 to 25.6% in FY2026. As external factors, continued firm domestic capital investment demand and expanding demand for factory air conditioning driven by the enforcement of the revised Industrial Safety and Health Regulations supported performance. Improved productivity following the completion of the redevelopment of the Yao Plant also contributed. The renewal of record profits despite absorbing an extraordinary loss (loss on retirement of fixed assets of ¥67 million) demonstrates strong earnings power.
Growth Strategy
Pursuing sustainable growth through strengthening manufacturing and R&D infrastructure and developing new business fields
Redevelopment construction at the Yao Plant was completed in March 2026, contributing to productivity improvement. Buildings (net) increased from ¥4,073 million in the previous period to ¥6,321 million, completing the physical reinforcement of the manufacturing base. Accelerated consumption of the accumulated order backlog is expected to contribute to results for FY2027 (ending March 2027).
The Yao Technology Research Center was completed in December 2025. This is driving accelerated development of products compatible with new refrigerants and advanced verification of control systems under various temperature and humidity environments. The R&D infrastructure for strengthening the competitiveness of next-generation products has been established.
Construction of a technology research institute has also begun at the Kawage Plant (Mie Prefecture). By establishing multiple R&D bases alongside the Yao Technology Research Center, the company aims to further strengthen its product development capabilities. Construction in progress totaling ¥555 million has been recorded, and investment is ongoing.
The company is accelerating the commercialization development of positive pressure air conditioning for the agriculture and livestock sectors, aiming to expand into a new field that contributes to food stability. This aims to establish a fourth pillar of earnings in addition to the existing industrial, commercial, and healthcare fields. R&D expenses increased from ¥28 million in the previous period to ¥32 million.
Leveraging the tailwind of the revised Industrial Safety and Health Regulations, the company is deploying sales initiatives emphasizing hygiene management through ventilation and positive pressurization. Sales and orders for factory zone air conditioners have increased, and with the order backlog building up, a contribution to results for FY2027 (ending March 2027) is expected.
Last updated: July 19, 2026