TOMOE ENGINEERING CO.,LTD.
6309・Prime Market・Machinery
Business
Tomoe Engineering, founded in 1941 and listed on the Tokyo Stock Exchange Prime Market, operates in two segments: Machinery Manufacturing & Sales Business and Chemical Industrial Products Sales Business. In the Machinery Manufacturing & Sales Business, the company manufactures and sells Centrifuges centered on solid-liquid separation, along with After-Sales Service & Parts Sales, serving domestic government demand (infrastructure such as sewage treatment), private-sector demand, and overseas markets. The Chemical Industrial Products Sales Business, accounting for approximately 74% of revenue, is the company's core operation, functioning as a specialty trading company that imports and sells specialized chemical products including Mining-Related Materials, Chemical Products-Related Materials, Functional Materials-Related Materials, and Electronic Materials-Related Materials. The company has 13 subsidiaries both domestically and overseas, with a global business foundation spanning Thailand, Malaysia, Vietnam, the Czech Republic, India, China, and the United States. Its major customers span the chemical, semiconductor, infrastructure, and automotive-related industries.
Business Model
In the Machinery Manufacturing & Sales Business, the company develops and manufactures products specialized in centrifugal separation technology, building up recurring revenue through After-Sales Service & Parts Sales (parts and repairs). In the Chemical Industrial Products Sales Business, the policy is to handle "high-value-added merchandise requiring specialized expertise that is distinctive even in limited markets," securing profits through import sales leveraging its proprietary procurement network and overseas bases. As management indicators, the company places emphasis on ordinary income and ROE, and advocates management that prioritizes profitability and capital efficiency over simple sales expansion.
Company Strengths
Revenue grew from ¥45,133 million and operating profit from ¥2,844 million in FY2021 to revenue of ¥59,365 million and operating profit of ¥5,352 million in FY2025 (ending March 2025). This exceeded the final-year targets of the previous medium-term management plan "For Sustainable Future" (revenue of ¥57,000 million, operating profit of ¥4,960 million), with both revenue and all profit measures reaching record highs.
As of the end of the fiscal year ending October 2025, the equity ratio stood at 75.8% (up 1.8pt year on year), with net assets of ¥42,737 million. Working capital and capital expenditures are financed mainly through operating cash flow and own funds, and the company held cash and cash equivalents of ¥13,367 million. Financial stability is high, securing capacity for further growth investment.
The operating margin of the Machinery Manufacturing & Sales Business improved from 8.0% to 12.1% during the previous medium-term management plan period. Operating profit for the fiscal year ending October 2025 reached ¥1,844 million, up 55.4% year on year, significantly exceeding the revised medium-term plan target of ¥1,470 million. This was driven by strong domestic demand from both government and private sectors as well as effective measures to improve profitability.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years from ¥45,133 million in FY2021 to ¥59,365 million in FY2025 (approximately 7% annual growth rate), but H1 FY2026 (ending October 2026) recorded ¥30,849 million (down 1.5% year on year), marking the first revenue decline. The main causes were a substantial decrease in Mining-Related Materials within the Chemical Industrial Products Sales Business (down ¥1,258 million) and the impact of the liquidation of a Chinese subsidiary. Operating profit was ¥3,703 million (down 0.2% year on year), essentially flat; although gross profit margin improved in both businesses, an increase in SG&A expenses driven mainly by personnel costs (from ¥4,754 million to ¥4,946 million) squeezed profit. The full-year forecast calls for revenue of ¥62,900 million and operating profit of ¥5,900 million (up 10.2% year on year), anticipating a return to profit growth. As an external factor, the slowdown trend in the Chinese economy is a headwind for the Chemical Industrial Products Sales Business, while domestic infrastructure renewal demand continues to be a tailwind for the Machinery Manufacturing & Sales Business.
Growth Strategy
Under the new medium-term management plan "Create The New Future," the company aims to achieve net sales of ¥70,000 million and operating profit of ¥7,000 million for FY2028 (ending October 2028)
TOMOEKOGYO ENGINEERING INDIA PRIVATE LIMITED, established in November 2025, has been consolidated from the current interim period. The company aims to build a foundation for expanding both the Machinery and Chemical businesses in emerging Asian markets, targeting increased new orders such as petrochemical projects.
The company is proceeding with the construction of a new plant, including the relocation of Tomoe Machinery Co., Ltd. Construction in progress increased from ¥83 million at the end of the previous fiscal year to ¥469 million, indicating that capital expenditure is now in full swing. The company aims to respond to increased orders in the Machinery business through enhanced production capacity and strengthened R&D capabilities.
While proceeding with the sale of policy-held shares (recording a gain on sale of ¥54 million in the current interim period), the company is actively enhancing shareholder returns through share buybacks of ¥899 million and an increased dividend (full-year annual dividend forecast of ¥76). The policy aims to achieve both improved capital efficiency and profit returns to investors.
As a key initiative of the new medium-term management plan, the company is expanding its portfolio of products generating gross profit of ¥100 million or more, focusing on high-value-added items such as semiconductor manufacturing, electronic materials, and industrial materials. The company is also pursuing expansion into new business areas in parallel to offset the decline in mining-related business.
Last updated: July 17, 2026