ZUIKO CORPORATION
6279・Prime Market・Machinery
Business
ZUIKO CORPORATION was founded in 1963 and is an industrial machinery manufacturer whose core business centers on hygiene product manufacturing machinery, including Sanitary Napkin Manufacturing Machinery and diaper manufacturing machinery. Its main customers are hygiene product manufacturers in Japan and overseas, and it has a track record of supplying major manufacturers including Unicharm. The company operates 11 subsidiaries globally, having built a sales and service network covering China, Southeast Asia, South Asia, Europe, North America, and Latin America. In June 2024, it made ZUIKO DELTA S.R.L. of Italy a subsidiary, strengthening its manufacturing and sales functions in Europe. The company is listed on the Prime Market of the Tokyo Stock Exchange (transitioned in May 2023).
Business Model
The company adopts a build-to-order production system tailored to customer specifications, requiring a relatively long period from order receipt to delivery. It secures stable working capital by collecting a portion of the order amount as advance payments before product delivery. In addition to machine unit sales, the company is expanding value-added offerings beyond machine units, such as parts sales (¥2,809 million in FY2025 (ending February 2025), up 25.5% year on year) and remodeling projects, aiming to stabilize revenue. The overseas sales ratio has reached approximately 80.9%, with local service provision through its global network of subsidiaries serving as a source of competitiveness.
Company Strengths
The company has established a total of 11 subsidiaries across North America, Latin America, Europe, Southeast Asia, South Asia, and China. In June 2024, it made Italy's ZUIKO DELTA S.R.L. a subsidiary, adding manufacturing and order-taking functions in Europe. The overseas sales ratio reached 80.9%, and overseas orders account for 78.2% of total orders.
At the end of FY2025 (ending March 2025), the order backlog stood at ¥14,772 million (up 14.0% year on year), while orders received totaled ¥21,767 million (up 8.6% year on year), both on an increasing trend. Since the order backlog converts into sales in subsequent periods, this provides high visibility into short-term sales outlook under the build-to-order production model.
Parts sales expanded to ¥2,809 million (up 25.5% year on year), accounting for 14.1% of total sales. The expansion of parts and modification projects, which are less affected by order fluctuations compared to machine unit sales, contributes to mitigating sales volatility and stabilizing earnings.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years peaked at ¥23,581 million in FY2022 (ended February 2022), declined to ¥19,951 million in FY2025 (ended February 2025), and recovered slightly to ¥21,170 million in FY2026 (ended February 2026). Operating profit also deteriorated from ¥2,146 million in FY2022 (ended February 2022) to an operating loss of ¥307 million in FY2025 (ended February 2025), before recovering to ¥162 million in FY2026 (ended February 2026). However, in Q1 of FY2027 (ending February 2027), revenue was ¥4,170 million (down 19.2% year-on-year) and the operating loss was ¥225 million (versus a loss of ¥76 million in the same period last year), marking a renewed deterioration. External factors included restrained capital expenditure by customers in the Chinese market and foreign exchange fluctuations (an equity-method investment loss of ¥27 million was recorded). The full-year forecast remains bullish at revenue of ¥27,000 million and operating profit of ¥1,780 million, premised on a recovery in shipments from the Chinese subsidiary from the second quarter onward as the basis for the business recovery.
Growth Strategy
Revitalizing competitiveness in hygiene product manufacturing machinery and transforming the business portfolio through expansion of the Cotton Spunlace Nonwoven Fabric business
Business operations commenced in January 2026, and in Q1 the segment posted net sales of ¥1,135 million and a segment profit of ¥13 million, achieving profitability. Cost ratio reduction through production leveling and smooth customer transition are progressing well. Under the 4th Medium-Term Management Plan, the target is new business net sales of ¥8,000 million or more.
Backed by an order backlog of ¥14,772 million at the end of the previous fiscal year, the company is promoting the early completion and delivery of orders already received. Cost increases due to delivery delays for new product projects involving high-value-added functions continue, and improving delivery schedule management is key to restoring profitability. This is directly linked to achieving full-year operating profit of ¥1,780 million for FY2027 (ending February 2027).
Order-taking activities in Europe are being continuously strengthened through ZUIKO DELTA S.R.L. (Italy). Sales proposal activities for Baby Diaper Manufacturing Machinery and Sanitary Napkin Manufacturing Machinery targeting emerging markets are also being actively pursued. In Q1, sales to Japan and Europe progressed favorably, contributing to a reduction in dependence on China.
Parts sales and modification projects are being strengthened as a stable revenue source outside of machinery units themselves. In Q1, parts sales revenue reached ¥431 million (up 2.4% year on year), securing revenue growth even as machinery unit sales declined significantly. There is room for medium- to long-term expansion as the number of installed machines in operation increases.
Last updated: July 17, 2026