NIKKO CO.,LTD.
6306・Prime Market・Machinery
Asphalt Plant Business
Nikko's core segment. Asphalt plant manufacturing and maintenance business with approximately 80% domestic market share.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥19,327 million | ¥19,480 million | ↓ |
| Segment Profit | ¥1,045 million | ¥976 million | ↑ |
| Segment Assets | ¥18,335 million | ¥18,037 million | ↑ |
| Order Backlog | ¥17,222 million | ¥9,006 million | ↑ |
Business Details
Develops manufacturing, sales, and maintenance services for asphalt plants, recycle plants, mixture silos, and electronic control equipment & plant management systems. Major customers are large road paving companies, with approximately 80% of customers being fixed/repeat clients. The domestic market is an oligopoly shared with one other company, with the Company holding approximately 80% share. Overseas, the Company has local subsidiaries in China (Nikko (Shanghai) Engineering Machinery Co., Ltd.) and Thailand (Nikko Asia (Thailand) Co., Ltd. and Nikko Global Manufacturing (Thailand) Co., Ltd.).
Recent Overview
Net sales declined slightly while profit improved; order backlog surged 91.2% year on year.
In FY2026 (ending March 2026), net sales were ¥19,327 million (down 0.8% year on year), a slight decline, but segment profit improved to ¥1,045 million (up 7.1% year on year). Although recognition timing for some projects was delayed in the first half, this was recovered in the second half. In addition to robust replacement demand supported by energy-saving support programs, demand for equipment contributing to reduced environmental impact and energy conservation also remained firm, resulting in a substantial increase in order backlog to ¥17,222 million, up 91.2% year on year. Overseas, while the economic slowdown and price competition in China continued, the Company maintained sales activities focused on profitability, and in Thailand and the ASEAN region focused on securing orders, inventory sales, and reviewing the production system.
Key Products
Growth Drivers
- Capturing robust replacement demand for asphalt plants manufactured in the 1980s by leveraging energy-saving support programs (strong order momentum, as shown by the 91.2% year-on-year increase in order backlog)
- Strengthening the stable earnings base through continuous expansion of maintenance services and transition to a preventive maintenance business model
- Creating new demand through development and market launch of GX-compliant products (medium-temperature mixture equipment, hydrogen burners, biomass fuel burners)
- Improving profitability of overseas business based in Thailand and China (sales activities focused on profitability, optimization of production systems)
- Improving profitability and reducing manufacturing costs through expanded sales of unit products such as the VP Series
Risks
- Market contraction risk from the long-term declining trend in domestic asphalt mixture production volume
- Risk of intensified price competition and plant impairment from the influx of low-priced Chinese products in Thailand and the ASEAN region
- Uncertainty in overseas demand and continued price competition due to China's economic slowdown and real estate downturn
- Market contraction risk if consolidation of asphalt plant facilities progresses due to restructuring in the road paving industry
- Risk of future entry into the Japanese market by Chinese, Korean, and other manufacturers as their technological capabilities improve
- Upward pressure on manufacturing costs from persistently high energy and materials prices and foreign exchange fluctuations
Last updated: June 24, 2026