Meiji Machine Co.,Ltd.

Business Details

Since its founding in 1899, the company has operated on two pillars: plant engineering (new construction, expansion, and renovation) for food factories such as milling, feed, and brewing plants, and industrial machinery manufacturing (roll mills, hammer mills, automatic bag openers, thawing machines, etc.). Major customers include large food and feed manufacturers such as JA Zen-Noh Kumiai Feed. For FY2026 (ending March 2026), full-year sales were ¥5,047 million, a significant decrease year on year, and the segment recorded a loss of ¥179 million. The company has resolved to transfer its equity interest in its Chinese subsidiary (Meiji Machinery (Dezhou) Co., Ltd.), advancing the selection and concentration of management resources.

Recent Overview

Full-year sales down 15.5%, segment loss significantly worsened to ¥179 million; resolution to transfer equity interest in Chinese subsidiary

For the full year of FY2026 (ending March 2026), the Industrial Machinery Business recorded sales of ¥5,047 million (down 20.8% from ¥6,380 million in the prior period) and a segment loss of ¥179 million (compared to a profit of ¥254 million in the prior period), a significant deterioration. Increased selling, general and administrative expenses put pressure on earnings. On the other hand, large-scale plant construction projects ordered this period are progressing smoothly on schedule. As a subsequent event, on April 27, 2026, the company entered into an agreement to transfer 100% of its equity interest in its Chinese subsidiary, Meiji Machinery (Dezhou) Co., Ltd., to Shenyang Fanli Industrial Co., Ltd. (execution planned during FY2027, ending March 2027), aiming to advance the selection and concentration of management resources. In addition, the Technology Development Center (M-TECH) was completed and began operations in April 2026.

Key Products

Growth Drivers

• Increased inquiries for large-scale plant construction projects driven by robust demand for new plant construction investment associated with the aging and consolidation of feed manufacturers' facilities
• Large-scale plant construction projects ordered this period are progressing smoothly on schedule, expected to contribute to sales recognition in FY2027 (ending March 2027)
• Capturing new demand from the food and chemical industries for labor-saving and workforce-reducing machinery such as automatic bag openers
• Enhancement of testing and training functions for various equipment through the commencement of operations at the Technology Development Center (M-TECH) in April 2026, contributing to order acquisition
• Continued strengthening of proposal-based sales and expansion of effective customers through cultivating dormant customers and approaching related peripheral industries
• Expansion of service revenue driven by robust demand for maintenance and renewal of aging machinery

Risks

• Risk of continued pressure on earnings due to increased selling, general and administrative expenses (from ¥1,258 million in the prior period to ¥1,521 million in the current period)
• Risk of schedule delays or construction losses on large-scale plant construction projects (provision for construction losses has been recorded)
• Risk of sales concentration in major customers (JA Zen-Noh Kumiai Feed accounted for approximately 20.6% of Industrial Machinery Business sales in the current period)
• Risk of customers curbing capital expenditure due to uncertainty over U.S. trade policy and soaring prices of raw materials and construction materials
• Risk of changes in the scope of consolidation and gains or losses on transfer associated with the execution of the equity transfer of the Chinese subsidiary (Meiji Machinery (Dezhou) Co., Ltd.)
• Risk of volatility in orders and sales as indicated by the significant decline in sales (down 20.8% year on year), and uncertainty over achieving a recovery in performance in FY2027 (ending March 2027)