SINTOKOGIO,LTD.

Business Details

Manufactures and sells shot blast machines, air blast machines, shot peening machines, barrel polishing machines, projection media/abrasive media, and also engages in surface treatment contract processing. Domestically focuses on consumables sales, while overseas the company promotes a "Three Attractions in One" (equipment, aftersales service, and consumables) approach leveraging the Elasticos network. Deployed across a wide range of industries including automobiles, construction machinery, electronic components, and semiconductors. In FY2026 (ending March 2026), segment sales were ¥96,493 million, accounting for approximately 54.8% of consolidated net sales of ¥176,178 million, making it the largest segment.

Recent Overview

Significant sales increase from including a full year of Elasticos sales, but a lump-sum impairment loss of ¥20,810 million on goodwill etc. was recorded

In FY2026 (ending March 2026), net sales increased by ¥18,718 million year-on-year to ¥96,493 million (up 24.1% year-on-year), due to the inclusion of Elasticos' full-year sales starting from the current consolidated fiscal year. Operating profit improved significantly, increasing by ¥914 million year-on-year to ¥1,098 million (up 494.9% year-on-year), driven by increased sales of machinery equipment. On the other hand, in the fourth quarter, a lump-sum impairment loss totaling ¥20,810 million was recorded on Elasticos' goodwill (¥11,130 million) and fixed assets, causing the unamortized goodwill balance to plummet to ¥440 million. Segment assets decreased from ¥108,733 million to ¥93,727 million. While orders in the construction machinery industry slowed, sales of parts and consumables for previously delivered equipment remained solid, resulting in orders received of ¥95,228 million (up 18.7% year-on-year).

Key Products

Growth Drivers

• Creating synergy effects through the "Three Attractions in One" business model of equipment, consumables, and aftersales service leveraging the Elasticos network
• Increase in sales of large machinery equipment for the construction machinery industry
• Solid trend in equipment, parts, and consumables for the semiconductor and electronic components industries amid expanding AI-related demand
• Strengthening the stable revenue base through expanded sales of parts and consumables for previously delivered equipment
• Expansion of business areas in the "surface creation" field through the incorporation of new technologies such as laser processing methods
• Expansion measures for "number of new customers" in the medium-term management plan and improved presence in the European market

Risks

• Impact on consumables sales from the economic slowdown in the European market (rising energy costs and labor costs, decreased exports due to US tariff policy)
• Risk of delayed earnings recovery at Elasticos even after the lump-sum goodwill impairment
• Risk of capital investment restraint by major customers due to industry restructuring and shift to EVs in the automobile industry
• Pressure on operating profit in the consumables segment due to rising domestic scrap unit prices
• Risk of decreased order backlog due to slowing capital investment trends in the construction machinery industry
• Risk of deteriorating business environment for overseas subsidiaries due to intensifying US-China friction and Trump administration tariff policy