TEIKOKU ELECTRIC MFG.CO.,LTD.
6333・Prime Market・Machinery
Business
Teikoku Electric Mfg. Co., Ltd. is a technology-intensive manufacturer that has been supplying fully leak-proof pumps to a wide range of industries—including petrochemical plants, semiconductors, electric power, and refrigeration and air conditioning—since it independently developed canned motor pumps as its core product in 1960. Based on domestic manufacturing, the company operates subsidiaries in the United States, Europe, Taiwan, Singapore, Korea, China, and India, providing manufacturing, sales, and After-sales Service on an integrated basis. Its major customers include petrochemical plant operators and semiconductor equipment manufacturers, and it has built up a long track record of adoption at sites requiring high safety standards for handling hazardous and toxic liquids. In December 2024, the company discontinued the operations of its electronic components subsidiary, completing the concentration of management resources on the Pump Business. The company plans to change its trade name to TEIKOKU Co., Ltd. in April 2026.
Business Model
The company adopts a build-to-order production system tailored to each customer's usage conditions, providing integrated design, manufacturing, sales, and maintenance to build high added value and long-term relationships of trust with customers. Manufacturing is centered at the domestic head office plant, while local production is also conducted at overseas subsidiaries in the United States, India, and elsewhere, generating after-sales service revenue as well through a global service network. Because production is made to order, the order backlog serves as a leading indicator of sales, and the order backlog at the end of the current period stood at ¥14,437 million.
Company Strengths
Since the completion of its first canned motor pump in 1960, the company has accumulated over 60 years of design and production technology and obtained numerous patents, maintaining a technological advantage that competitors cannot easily replicate in a short period. Its long track record of deliveries in fields handling hazardous and harmful liquids has built customer trust, forming a source of competitive advantage that is difficult for new entrants to substitute.
The company operates manufacturing, sales, and after-sales service subsidiaries in the United States, Europe, Taiwan, Singapore, South Korea, China, and India, enabling detailed, locally focused responsiveness. TEIKOKU USA INC. has also begun local knockdown production of products compliant with the U.S. standard ASME B73.3, reflecting continued investment to strengthen local competitiveness.
While interest-bearing debt at the end of the current period stood at only ¥391 million, the company held cash and cash equivalents of ¥9,798 million, and its equity ratio reached 78.0%. This financial soundness underpins a management foundation capable of funding capital expenditure, R&D, and shareholder returns (share buybacks of ¥3,459 million and dividends of ¥2,059 million) from internal funds.
ENVALITH's Perspective
Performance Trend
Revenue decreased 4.8% from ¥30,546 million in FY2025 (ended March 2025) to ¥29,091 million in FY2026 (ending March 2026). The main causes were a decline in Chemical Equipment Canned Motor Pumps and After-sales Service in the US (due to tariff policy and financial conditions) and China (economic slowdown), as well as the cessation of business operations at Hirafuku Electric Manufacturing. Operating profit fell from ¥6,055 million to ¥4,983 million (down 17.7%), directly impacted by a decline in gross margin. Meanwhile, net profit increased from ¥3,811 million to ¥4,341 million (up 13.9%) due to the recording of extraordinary gains, including a gain on sale of investment securities of ¥869 million. Southeast Asia, India, and Europe remained solid, with revenue in the Asia region increasing year on year to ¥12,559 million. For FY2027 (ending March 2027), the company forecasts revenue of ¥31,010 million and operating profit of ¥5,020 million, expecting revenue growth driven by a continued high level of order backlog, recovery in the US market, and foreign exchange effects.
Growth Strategy
Aiming for sales of ¥70 billion and an overwhelming No.1 position in canned motor pumps by 2035, centered on decarbonization and global expansion
In the US market, capital investment slowed in FY2026 (ending March 2026) due to the impact of tariff policy, but a recovery trend is expected in the FY2027 (ending March 2027) forecast. Southeast Asia and India continued to show steady progress in the current period, and the company aims for continued order expansion by strengthening its local structure.
Against the backdrop of the spread of generative AI, capital investment demand for semiconductor manufacturing equipment for data centers remains strong. The high safety and leak-free characteristics of Canned Motor Pumps are well suited to semiconductor manufacturing processes, and the company will accelerate product deployment into this growth area.
The Electronic Components Business of Hirafuku Electric Manufacturing was discontinued at the end of December 2024, and from the current period the company has consolidated into a single Pump Business segment. By concentrating management resources and administrative costs on the Pump Business, the company aims to improve profitability and speed up decision-making.
The company targets a cumulative total payout ratio of 100% (dividend payout ratio guideline of 50%) over the three-year period from FY2025 to FY2027 (ending March 2027). In FY2026 (ending March 2026), an annual dividend of ¥133 (dividend payout ratio of 50.1%) and share buybacks of ¥3,459 million were implemented. The forecast annual dividend for FY2027 (ending March 2027) is ¥132 (dividend payout ratio of 54.0%).
In FY2026 (ending March 2026), a decline in gross margin and increased selling, general and administrative expenses (R&D expenses of ¥548 million, up year on year) put pressure on operating profit. In FY2027 (ending March 2027), fixed cost absorption through increased sales is expected, but rising raw material prices and increased personnel costs are expected to continue, making price pass-through and cost management key challenges.
Last updated: July 19, 2026