ENVALITH
株式会社技研製作所 logo

GIKEN LTD.

6289・Prime Market・Machinery

Official website
株式会社技研製作所 logo
GIKEN LTD.6289

Business

Giken Ltd. has developed, manufactured, sold, and rented construction machinery centered on the vibration-free, noise-free, and low-environmental-impact "press-in method" since developing the world's first hydraulic press-in/pull-out pile machine, the Silent Piler (Hydraulic Press-in/Pull-out Pile Machine), in 1975, and operates two businesses: the Construction Machinery Business and the Press-in Construction Business, which leverages press-in technology for construction work execution. Domestically, the company's primary market is driven by demand for disaster prevention and mitigation, national resilience, and infrastructure renewal due to aging facilities, while overseas it has spread press-in technology to more than 40 countries and regions worldwide, including Europe, Asia, and North America. Its main customers are construction contractors and public institutions both in Japan and abroad, and it has a composite business structure that generates revenue not only from machinery sales, rental, and Maintenance Services, Parts Sales & Rental but also from construction work performed in-house.

Business Model

In the Construction Machinery Business (net sales of ¥17,656 million), the company generates revenue from the sales, rental, and maintenance services of the Silent Piler and other equipment, which is manufactured mainly on a build-to-order basis. In the Press-in Construction Business (net sales of ¥8,680 million), the company and its subsidiaries directly execute construction work using press-in technology to earn construction revenue. Overseas, through a comprehensive support service called GTOSS (Comprehensive Customer Support Service), the company provides technology and know-how to partner companies, building an ecosystem-type model that simultaneously promotes machinery sales and the spread of the construction method.

Company Strengths

Since developing the world's first Silent Piler in 1975, the company has continued to independently evolve vibration-free and noise-free press-in construction methods, and possesses a group of specialized methods including the Gyropress Method and the Hard Ground Clearing Method. Hard ground press-in of 900mm-wide hat-shaped steel sheet piles was included in the Ministry of Land, Infrastructure, Transport and Tourism's FY2025 civil engineering work cost estimation standards, obtaining official certification as a standard method for public works.

As of the end of FY2025 (ending August 2025), the equity ratio stood at 84.2% (84.0% in the previous period), with net assets of ¥40,285 million and total assets of ¥47,837 million, maintaining an extremely sound financial structure. Interest-bearing debt is limited, and the interest coverage ratio was secured at 143.3 times (FY2025 (ending August 2025)), giving the company the financial strength to fund aggressive R&D and capital investment from its own funds.

Overseas, the company has built a collaborative framework with partner companies through GTOSS (Comprehensive Customer Support Service). It has GTOSS members comprising 6 companies in Europe, 10 in Asia, and 3 in North America, with new members joining in the Netherlands, Germany, South Korea, and the United States during the current period. New market development is also progressing steadily through new machinery sales to Singapore and India and the provision of educational programs at the "Press-in Dojo."

ENVALITH's Perspective

Net profit attributable to owners of parent for the cumulative 3Q of FY2026 (ending August 2026) was ¥1,466 million (up 225.0% year on year). In the same period of the prior year, extraordinary losses totaling ¥853 million were recorded, comprising litigation-related losses of ¥301 million, provision for allowance for doubtful accounts of ¥511 million, and loss on disposal of fixed assets of ¥40 million; in the current period, extraordinary losses were zero. The drop-off of these one-time factors is driving a substantial improvement in net profit, and the cumulative 3Q progress rate against the full-year forecast (net profit of ¥2,200 million) stands at 66.6%, generally on track. Given that development-type projects are planned to be concentrated in the fourth quarter, the likelihood of achieving the full-year target is judged to be reasonably high.

Cumulative 3Q operating profit for the Press-in Construction Business was ¥716 million (down 21.7% year on year), a decline. The company explains this as a temporary timing shift, with high-value-added development-type projects domestically planned to be concentrated in the fourth quarter; however, external factors such as rising construction costs and a shortage of skilled labor have caused deterioration in the market environment, leading customers to become more cautious about capital expenditure, and structural pressure on profitability cannot be ruled out. Actual progress on development-type projects in the fourth quarter will be a key indicator for assessing the earnings recovery capability of this business.

Cumulative 3Q net sales for the Construction Machinery Business were ¥13,394 million (up 17.8% year on year), showing robust growth, with overseas sales (other regions) expanding significantly to ¥2,915 million from ¥1,617 million in the same period of the prior year. Combined revenue growth from product sales, parts sales, and rental through the GTOSS (Comprehensive Customer Support Service) network can be confirmed. On the other hand, as an external factor, the outlook for US tariff policy remains uncertain, and continued attention is warranted regarding its impact on business operations in the North American market (four GTOSS member companies in California) and the risk of spillover effects on manufacturing costs.

Growth Strategy

Under the Medium-Term Management Plan 2027, the company is advancing a four-pronged strategy of aggressive overseas expansion, enhanced development, and steady domestic growth

By collaborating with member customers to provide integrated product sales, rental, and technical services, the company is creating markets in Asia, Europe, and North America. On a cumulative basis through Q3, the network expanded to 11 companies in Asia and 4 companies in North America, with concrete progress confirmed on projects in India, Singapore, the Netherlands, and California.

The company is strengthening the profit base of its domestic Construction Machinery Business by expanding sales of standard machines, including the new "Silent Piler ST400SX" model, and promoting rental of large specialty machines. Cumulative Q3 sales in the Construction Machinery Business reached ¥13,394 million (up 17.8% year on year), progressing steadily.

In addition to public infrastructure works such as new floodgate construction, river embankment renovation, and bridge replacement, the company aims to expand orders for high-value-added development-type projects. On a cumulative Q3 basis, the number of development-type projects fell below the previous year due to a plan concentrating them in Q4; catching up in Q4 will be key to achieving the full-year plan.

The 900mm-width hat-shaped steel sheet pile press-in method has been listed in the Ministry of Land, Infrastructure, Transport and Tourism's civil engineering work cost estimation standards and certified as a standard method for public works. The number of projects adopting the method is progressing steadily, particularly in disaster recovery/reconstruction projects and national resilience projects, and the company continues to promote its ongoing adoption by leveraging this institutional backing.

Last updated: July 17, 2026