ORIENTAL CHAIN MFG. CO., LTD.
6380・Standard Market・Machinery
Chain Business
Core business accounting for approximately 93% of group sales. Manufactures and sells chains for power transmission and conveyance.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (full year, FY2026 ending March 2026) | ¥3,825 million | ¥3,798 million | ↑ |
| Segment operating profit (full year, FY2026 ending March 2026) | ¥245 million | ¥337 million | ↓ |
| Segment assets (as of end of FY2026 ending March 2026) | ¥3,703 million | ¥3,802 million | ↓ |
| Capital expenditure (increase in tangible and intangible fixed assets, FY2026 ending March 2026) | ¥161 million | ¥569 million | ↓ |
| Segment operating margin (FY2026 ending March 2026) | 6.4% | 8.9% | ↓ |
Business Details
The company manufactures and sells Power Transmission Roller Chains (standard, special, and micro types), Conveyor Chains (standard, special, and cable conveyor types), Sprockets, Conveyance Systems, and other products. It supplies a wide range of domestic and overseas industrial equipment customers, and as a "comprehensive manufacturer of power transmission and conveyance," seeks differentiation centered on original products such as highly corrosion-resistant chains. In FY2026 (ending March 2026), the company abolished the Sprocket Division and consolidated some sales offices, advancing a restructuring of its business structure.
Recent Overview
Profitability recovered in the second half through price pass-through, but full-year operating profit fell 27.5% year on year due to declining North American sales and rising prices.
In the Chain Business for FY2026 (ending March 2026), sales secured a slight increase to ¥3,825 million (up 0.7% year on year), while operating profit declined significantly to ¥245 million (down 27.5% year on year). In the first half, the business was directly hit by soaring prices, rising labor costs, and a sharp decline in sales to North America due to the effects of U.S. trade policy. The company implemented price pass-through from September 2025, recovering profitability in the second half, but this was not sufficient to offset the full-year impact of higher costs and the decline in North American sales. In addition, as part of business restructuring, the company abolished the Sprocket Division and consolidated some sales offices.
Key Products
Growth Drivers
- Increased product adoption through strengthened domestic proposal-based sales of original products such as highly corrosion-resistant chains
- Improved profitability from the full-year effect of price pass-through implemented in September 2025
- Fixed cost reduction effects from structural reforms such as the abolition of the Sprocket Division and consolidation of sales offices
- Optimization of management resources and creation of synergies through a four-company business alliance with Katayama Chain, RK Japan, and Kaga Kogyo
- Establishment of world No.1 quality and supply capabilities in large roller chains (a key initiative of the 8th Medium-Term Management Plan)
- Promotion of higher value-added products in special-purpose markets
Risks
- Risk of continued weak export orders to North America due to U.S. trade policy and tariff trends
- Pressure on profitability from rising prices and soaring raw material costs
- Deterioration of export profitability due to instability in foreign exchange markets
- Increased borrowing costs due to rising domestic interest rates
- Risk of customer attrition and loss of sales opportunities due to the abolition of the Sprocket Division and consolidation of sales offices
- Risk of declining production efficiency due to delayed renewal of aging equipment
Last updated: July 3, 2026