KIMURA KOHKI Co.,Ltd.

Business Details

Founded in 1945, the company specializes in the manufacture and sale of commercial air conditioning equipment. It promotes "optimal air conditioning by field" for the industrial, commercial, and health-related sectors. Leveraging patented proprietary technology and an in-house control system as strengths, it provides high-value-added products through a made-to-order production system. Its clients are specialized business operators such as general contractors and subcontractors. All sales are domestic, with no concentration on specific customers. In FY2026 (ending March 2026), the company achieved record highs in sales and all profit items, attaining an operating profit margin of 25.6%.

Recent Overview

In FY2026 (ending March 2026), sales and all profit items reached record highs; both revenue and profit are expected to increase again next fiscal year

In FY2026 (ending March 2026), net sales were ¥17,922 million (+11.7% year on year), operating profit was ¥4,589 million (+24.8%), and net profit for the period was ¥3,278 million (+31.3%), with all items reaching record highs. Redevelopment construction at the Yao Plant was completed in March, contributing to improved productivity. The Yao Technology Research Center was completed in December, accelerating the development of products compatible with new refrigerants. The accumulated order backlog for factory zone air conditioners is expected to contribute to results in FY2027 (ending March 2027). The forecast for FY2027 (ending March 2027) is net sales of ¥19,700 million (+9.9%), operating profit of ¥5,000 million (+9.0%), and net profit for the period of ¥3,465 million (+5.7%). The dividend was significantly increased from ¥120 in the previous period to ¥200, and ¥200 is planned for the next period as well.

Key Products

Growth Drivers

• Continued solid domestic capital investment demand and expanded orders driven by high evaluation of proprietary products (high-performance models) with excellent control functions and energy-saving performance
• Capturing demand for heatstroke countermeasures and workplace environment improvement for factory zone air conditioners, driven by the tailwind of the enforcement of the revised Industrial Safety and Health Regulations (the accumulated order backlog is expected to contribute to results in FY2027, ending March 2027)
• Increased installations in the industrial sector for quality control and workplace environment improvement purposes
• Growth in renewal projects at previously installed large commercial facilities in the commercial sector
• Expanded installations in the health-related sector (luxury resort hotels, educational institutions, etc.)
• Improved productivity and increased production capacity following the completion of the Yao Plant redevelopment (March 2026)
• Accelerated development of products compatible with new refrigerants and advancement of control systems following the completion of the Yao Technology Research Center
• Strengthened R&D structure through the start of construction of a technology research institute at the Kawage Plant
• Development of new markets through accelerated development toward commercialization of positive pressure air conditioning for agriculture and livestock

Risks

• Risk of rising costs due to soaring prices of materials (steel, non-ferrous metals, crude oil, etc.) (material costs account for 54.4% of manufacturing costs)
• Indirect effects from prolonged Middle East tensions and geopolitical risks, including companies holding back capital investment, construction delays, and soaring energy and materials prices
• Risk of declining domestic capital investment demand due to a slowdown in overseas economies
• Risk of deteriorating consumer sentiment and rising construction costs due to price increases
• Risk to stable procurement of materials (procurement difficulties due to global situational disruption), which the company is addressing by diversifying its suppliers
• Risk that performance is affected by order trends across the construction industry as a whole (although there is no concentration on specific customers, there is dependence on general contractors and subcontractors)
• Risk of delays in responding to new refrigerant regulations (development of compliant products is being accelerated)
• Financial impact from the expansion of treasury stock buybacks (¥740 million in the current period)