PEGASUS CO., LTD.
6262・Standard Market・Machinery
Business
PEGASUS Co., Ltd. traces its roots to an industrial sewing machine manufacturer founded in 1914 with a history spanning over 100 years, and currently operates two businesses: the Apparel Machinery Business and the Automotive Business. In the Apparel Machinery Business, the company supplies products to sewing markets worldwide as a top brand in chain stitch sewing machines, with a sales network spanning Asia, Latin America, Africa, and other regions. In the Automotive Business, the company manufactures and sells die-cast parts, including retractor parts for automotive seatbelts, at four sites across three countries: China, Vietnam, and Mexico. The group's consolidated sales, including 12 consolidated subsidiaries, totaled ¥21,658 million (FY2026, ending March 2026). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the Apparel Machinery Business, chain stitch sewing machines produced at manufacturing bases in Japan, China, and Vietnam are sold to sewing factories worldwide through sales subsidiaries in Singapore, the United States, Europe, Southeast Asia, and other regions. In the Automotive Business, manufacturing bases in China, Vietnam, and Mexico serve as the main production sites, supplying die-cast parts to automotive parts manufacturers. Both businesses adopt a make-to-forecast production approach, building a revenue model that combines continuous supply of products and parts with technical services.
Company Strengths
Since its founding in 1914, the company has accumulated technology for over 100 years as a specialized manufacturer of industrial chain stitch sewing machines, establishing itself as a top brand in the chain stitch sewing machine field. R&D expenses for the fiscal year under review were ¥570 million, with a total of 11 new industrial property right applications filed domestically and overseas. The company continues to develop digitally controlled sewing machines and labor-saving equipment to differentiate itself from competitors.
In the Apparel Machinery Business, the company has established a system enabling production of the same products at two manufacturing sites in China (Tianjin) and Vietnam (Hai Duong Province), ensuring country risk diversification and production flexibility. The Automotive Business has also built a four-site structure across three countries—China, Vietnam, and Mexico—with this global stable supply system serving as the foundation for competitive advantage.
The company has established sales subsidiaries in Singapore, the United States, Europe, Southeast Asia (Malaysia), China, and Vietnam, maintaining a sales network that provides direct access to sewing markets in Asia, Europe, the Americas, Latin America, Africa, and other regions. In November 2024, the company newly established PEGASUS UNITED ASIA SDN. BHD. in Malaysia, strengthening its response to the Southeast Asian market.
ENVALITH's Perspective
Performance Trend
Performance over the past five fiscal periods has shown large swings: a high-profitability period in FY2022–FY2023 (operating profit of ¥1,847 million and ¥2,657 million) → a sharp decline in FY2024 (operating profit of ¥39 million, net loss) → a rapid recovery in FY2025 (operating profit of ¥1,573 million) → renewed deterioration in FY2026 (operating profit of ¥946 million, net income of ¥323 million). The deterioration in FY2026 was caused by a combination of factors: sluggish conditions in the Apparel Machinery Business's key markets due to monetary tightening in Bangladesh and an economic slowdown in China; a decline in profit in the Automotive Business (segment profit down 23.1% year on year) due to price-cutting pressure in China; an increase in SG&A expenses; and an impairment loss of ¥273 million recorded in the Automotive Business. External factors such as U.S. tariff measures and heightened geopolitical risk also weighed on performance. The outlook for FY2027 (ending March 2027) remains challenging, with net sales of ¥22,180 million (up 2.4% year on year), operating profit of ¥840 million (down 11.3%), and ordinary profit of ¥510 million (down 53.8%).
Growth Strategy
Aiming for sustainable growth through deepening differentiation in the Apparel business and acquiring new customers in the Automotive business
Amid rising automation and labor-saving needs against a backdrop of increasing difficulty securing skilled workers at sewing factories, the company is promoting the development of labor-saving machines and Digitally Controlled Sewing Machines. It aims to capture growing demand for high value-added products and improve the profitability of the Apparel Machinery Business.
The company continues to introduce price-competitive strategic models to expand its customer base in emerging markets such as Central/South America (Mexico, etc.) and North Africa (Egypt). By broadening its product lineup, it aims to widen its target customer base and build a brand trusted by all customer segments.
In response to price reduction pressure in the Chinese market and declining market share of Japanese manufacturers in Southeast Asia, the company is promoting the acquisition of new customers and new parts centered on the Americas market. It aims for sustainable growth by maintaining and strengthening a stable supply system leveraging its production structure of 4 sites across 3 countries worldwide.
The company is strengthening head office functions such as technical support for overseas sites, quality stabilization, and operational efficiency improvement, while continuously promoting labor savings and cost improvements. It aims to enhance corporate value through improved profitability and capital efficiency. The assumed foreign exchange rate for the FY2027 (ending March 2027) earnings forecast is ¥150 to the US dollar.
Last updated: July 19, 2026