ENVALITH
株式会社東京自働機械製作所 logo

TOKYO AUTOMATIC MACHINERY WORKS, LTD.

6360・Standard Market・Machinery

Official website
株式会社東京自働機械製作所 logo
TOKYO AUTOMATIC MACHINERY WORKS, LTD.6360

Business

Tokyo Jido-Kikai Seisakusho Co., Ltd. is an industrial machinery manufacturer founded in 1908, listed on the Standard Market of the Tokyo Stock Exchange. It comprises two segments: the "Packaging Machinery Business," which manufactures and sells automatic packaging machinery mainly for the confectionery and food industry, and the "Production Machinery Business," which handles contact lens manufacturing equipment and other products for a specific overseas customer (JOHNSON & JOHNSON VISION). Its manufacturing base is the Kashiwa Plant in Chiba Prefecture, and its design and development division is located in Nagareyama, Chiba Prefecture. Its affiliate, Tokyo Shisetsu Kogyo Co., Ltd., handles part of the manufacturing of packaging machinery. Net sales for FY2026 (ending March 2026) were ¥9,693 million.

Business Model

The company adopts a build-to-order production system based on customers' capital expenditure plans, recognizing revenue upon completion of product acceptance inspection. Packaging Machinery follows a multi-customer model that captures labor-saving and automation demand in the confectionery and food industry, while Production Machinery is based on a concentrated model built on long-term collaborative relationships with specific overseas customers. The company invests ¥144 million annually (FY2026 (ending March 2026)) in research and development to maintain its capacity to respond to customer needs.

Company Strengths

In FY2026 (ending March 2025), order intake for Packaging Machinery reached ¥6,727,981 thousand (up 11.1% year on year), while the order backlog stood at ¥3,450,819 thousand (up 5.7% year on year), continuing to accumulate. This structure makes it easier to forecast revenue recognition in subsequent periods. Steady order trends have been confirmed against a backdrop of ongoing automation demand, centered on the confectionery and food industries.

The Production Machinery segment recorded a segment profit margin of 27.9% in FY2026 (ending March 2025) (net sales of ¥3,151 million, segment profit of ¥880 million). Built on a long-standing collaborative relationship with JOHNSON & JOHNSON VISION, the company has accumulated technology and know-how related to customer-specific manufacturing equipment since the start of a large-scale project in 1999.

Segment profit for the Packaging Machinery segment improved substantially, from ¥4 million in FY2025 (ending March 2025) to ¥407 million in FY2026 (ending March 2025) (profit margin of approximately 6.2%). This improvement in the cost ratio resulted from the promotion of efficiency and appropriate price pass-through, representing a track record of profit structure improvement achieved through the company's own efforts as explicitly stated in its Annual Securities Report.

ENVALITH's Perspective

Revenue for FY2026 (ending March 2026) was ¥9,693 million (down 24.8% year on year), and operating profit was ¥669 million (down 57.2% year on year), representing a significant decline in both revenue and profit. The main cause was that Production Machinery segment revenue from external customers stood at only ¥3,152 million (restated), a sharp drop from the elevated level of the previous fiscal year. This can be characterized as a set of results that once again revealed the structural vulnerability whereby performance is heavily influenced by the timing of acceptance inspections for the large-scale project for J&J Vision.

FY2026 (ending March 2026) net income of ¥808 million exceeded operating profit of ¥669 million, suggesting that non-operating income/losses, extraordinary income/losses, or tax effects may have boosted net income. While confirmation of the detailed disclosures in the financial results summary is necessary, the underlying earnings power of the business (on an operating profit basis) declined significantly year on year, and caution is warranted against evaluating performance based solely on the net income level.

Earnings from Production Machinery are heavily dependent on the capital expenditure plans of J&J Vision, making that customer's investment trends the largest factor driving fluctuations in performance. Meanwhile, orders for Packaging Machinery have remained solid, supported by automation demand (as an external factor) in the confectionery and food industries, and the level of the order backlog is an important leading indicator for revenue in the next fiscal period. It should also be closely monitored that the risk of a global economic slowdown stemming from U.S. trade policy could become a headwind for Production Machinery, which is dependent on overseas customers.

Growth Strategy

The 7th Medium-Term Management Plan is built on two pillars: expanding Packaging Machinery sales and raising the overseas sales ratio, and securing stable earnings in the Production Machinery business.

Capturing automation and labor-saving demand in the confectionery and food industries, the company aims to build up order volume and progress recognition of revenue from the order backlog. By raising the overseas ratio, it seeks to reduce dependence on specific domestic industries and diversify its revenue base.

By deepening the collaborative relationship with J&J Vision, the company aims to secure orders in line with the recovery and expansion of the customer's capital expenditure plans. It will maintain the high profit margin (27.9%) while promoting the leveling of large projects to curb fluctuations in business performance.

By promoting price pass-through in Packaging Machinery and improving manufacturing efficiency, the company aims for continuous improvement in segment profit margin. The margin recovered to approximately 6.2% in FY2026 (ending March 2026), and further improvement is being pursued.

Last updated: July 19, 2026