TOKYO KIKAI SEISAKUSHO,LTD.

Business Details

This is the Group's sole business segment, centered on the manufacture, sale, and maintenance services of newspaper offset printing presses, and also encompasses the manufacture and sale of newspaper dispatch systems and other peripheral equipment through consolidated subsidiaries. Major customers are domestic newspaper publishers. The company is promoting expanded sales of the next-generation standard press COLOR TOP ECOWIDE III, while also focusing on developing new markets in the FA business (AMR/autonomous mobile robots) and the defense sector.

Recent Overview

Order intake surged 293% year-on-year, with order backlog building up to ¥11,751 million

For the full year of FY2026 (ending March 2026), net sales were ¥8,456 million (up 14.2% year-on-year) and operating profit was ¥721 million (up 12.4% year-on-year), achieving both increased revenue and profit. Profit attributable to owners of parent rose sharply to ¥1,057 million (up 205.9% year-on-year), boosted by ¥452 million in litigation-related income recorded as extraordinary income. Order intake surged to ¥15,523 million (up 293.0% year-on-year) and order backlog expanded to ¥11,751 million (up 250.8% year-on-year), reflecting notable progress in orders for the COLOR TOP ECOWIDE III. In the FA business, the company signed a contract for automation and labor-saving equipment for the Ministry of Defense, marking its entry into a new market. For FY2027 (ending March 2027), the company expects to record extraordinary income from the sale of fixed assets (land and buildings in Kisarazu City, Chiba Prefecture, with a transfer value of ¥399 million), while extraordinary losses related to litigation and other matters are expected to continue.

Key Products

Growth Drivers

• Capturing newspaper companies' equipment renewal demand through expanded orders for the next-generation standard press COLOR TOP ECOWIDE III (orders already received from The Yomiuri Shimbun Tokyo Head Office, Miyazaki Nichinichi Shimbun, and Shimotsuke Shimbun)
• Improved medium-term visibility of net sales due to the buildup of order backlog to ¥11,751 million (up 250.8% from the end of the prior fiscal year)
• Full-scale entry into the defense market, starting with the signing of a contract for automation and labor-saving equipment for the Ministry of Defense in the FA business (AMR/autonomous mobile robots)
• Maintaining a stable revenue base through the maintenance services business (with a track record of approximately 200 operating units domestically and internationally)
• Expected recording of extraordinary income from the sale of fixed assets in Kisarazu City, Chiba Prefecture (transfer value of ¥399 million) in FY2027 (ending March 2027)

Risks

• Newspaper companies continue to restrain capital investment amid the structural decline in circulation and advertising revenue in the newspaper industry, and the environment for new orders for printing presses remains challenging
• The lead time from order receipt to delivery and revenue recognition for printing presses is long, creating a risk that periodic performance may fluctuate depending on the pace of order backlog consumption and construction progress
• For FY2027 (ending March 2027), the company forecasts net sales of ¥10,960 million (up 29.6% year-on-year), but expects a significant decline in profit, with operating profit of ¥700 million (down 2.9% year-on-year) and net profit of ¥560 million (down 47.0% year-on-year), as extraordinary losses including litigation-related expenses are expected to weigh on profit
• A damages lawsuit against I.R Japan, Inc. and related parties (filed in December 2023) remains ongoing, and there remains a risk of additional litigation-related expenses being recorded
• New businesses such as the FA business and the defense sector are still in the launch phase, and the timing and scale of their earnings contribution remain uncertain