KAWATA MFG.CO.,LTD.
6292・Standard Market・Machinery
Japan
Core segment responsible for the manufacture and sale of plastic molding machine peripheral equipment in Japan
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers, full year) | ¥11,981 million | ¥13,561 million | ↓ |
| Net sales (including internal sales, full year) | ¥12,654 million | ¥14,166 million | ↓ |
| Segment profit (ordinary income basis, full year) | ¥1,038 million | ¥1,338 million | ↓ |
| Segment assets (fiscal year-end) | ¥18,922 million | ¥19,805 million | ↓ |
| Depreciation (full year) | ¥243 million | ¥247 million | ↓ |
| Orders received (full year) | ¥11,625 million | ¥12,380 million (estimate) | ↓ |
| Order backlog (fiscal year-end) | ¥5,169 million | ¥5,793 million (estimate) | ↓ |
| Gross profit margin | 28.3% | 27.6% | ↑ |
Business Details
The Company and its domestic subsidiaries (Thermotech Co., Ltd., Raiken Co., Ltd., M-L Engineering Co., Ltd., etc.) manufacture and sell plastic product manufacturing equipment such as conveyors, dryers, mold temperature controllers, mold chillers, and plastic crushers. Major customers are mainly manufacturers in the injection molding processing industry, covering a wide range of fields including EV lithium-ion battery-related, automotive-related, film/sheet-related, and medical applications. This is the largest segment, accounting for approximately 61.9% of the Group's consolidated external sales.
Recent Overview
Net sales declined 11.6% year on year due to weakness in EV and injection molding-related demand, but gross margin improved
In the Japan segment for FY2026 (ending March 2026), orders related to EV lithium-ion batteries and automotive industry injection molding remained weak, causing net sales to external customers to fall to ¥11,981 million (down 11.6% year on year). Meanwhile, gross profit margin improved from 27.6% to 28.3% due to cost reductions from improved production efficiency and a decrease in large-scale projects. Selling, general and administrative expenses also decreased, but not enough to offset the decline in sales, resulting in segment profit (ordinary income) of ¥1,038 million (down 22.4% year on year). Orders received also declined 6.1% year on year to ¥11,625 million, and order backlog fell 10.8% year on year to ¥5,169 million, indicating soft leading indicators. Non-plastic-related demand such as film/sheet-related and medical applications increased, providing some support.
Key Products
Growth Drivers
- Increase in demand for non-plastic-related applications such as film/sheet-related and medical uses
- Improving gross profit margin trend (27.6% → 28.3%) through cost reduction from improved production efficiency
- Development and expansion of new sales fields such as batteries, food, cosmetics, and chemicals (system proposals centered on high-speed mixers)
- Response to technological changes such as vehicle electrification, weight reduction, and integrated molding (gigacasting) in the automotive sector
- Expanding demand for rationalization equipment against a backdrop of labor-saving investment needs and a declining working-age population
- Operational efficiency and competitiveness enhancement through core system renewal (software investment of ¥262 million)
Risks
- Prolonged slump in capital investment related to EV lithium-ion batteries
- Sluggish trend in orders related to injection molding for the domestic and overseas automotive industry
- Deteriorating capital investment sentiment due to uncertainty in US trade policy and China's economic slowdown
- Uncertainty over future sales due to declines in orders received and order backlog (down 6.1% and 10.8% year on year, respectively)
- Cost pressure from rising personnel expenses due to wage increases and increased depreciation from core system renewal
- Cost increases due to crude oil price spikes and raw material procurement risks stemming from worsening Middle East situation
Last updated: June 25, 2026