KAJI TECHNOLOGY CORPORATION

Business Details

Kaji Technology's core business is the manufacture and sale of compressors, encompassing the manufacture and sale of fluid machinery and industrial machinery such as air/gas compressors, compression filling and sales, and machinery installation work. The company holds the top market share in the field of compressors for hydrogen stations, and is also expanding into the carbon-neutral market (including compressors for CO2 recovery equipment) and overseas petrochemical plants. The After-Sales Service Business functions as a stable revenue source, and in FY2026 (ending March 2026), performance improved significantly due to the acquisition of multiple large-scale orders related to hydrogen mobility and carbon neutrality.

Recent Overview

Sales and operating income both increased significantly due to large-scale hydrogen/carbon-neutrality-related orders and strong after-sales service performance

In FY2026 (ending March 2026), there were multiple large-scale orders related to hydrogen mobility and carbon neutrality, and sales of compressor units progressed steadily. The After-Sales Service Business also performed well, resulting in sales of ¥7,799 million (up 11.4% year on year) and gross profit of ¥2,411 million (up 18.5% year on year). Although selling, general and administrative expenses increased 5.0% year on year to ¥1,486 million due to higher personnel expenses associated with wage increases, operating income reached ¥925 million (up 49.2% year on year). In addition, the company recorded an extraordinary gain of ¥37 million following a favorable ruling in litigation against another company, and net income increased 25.0% year on year to ¥723 million. The forecast for FY2027 (ending March 2027) calls for sales of ¥7,100 million (down 9.0% year on year) and operating income of ¥970 million (up 4.8% year on year). The company newly formulated the "2026 Medium-Term Management Plan (FY2026-FY2028)," outlining its policy of aiming for medium- to long-term sustainable growth.

Key Products

Growth Drivers

• Expansion of compressor unit sales through the acquisition of large-scale orders related to hydrogen mobility and carbon neutrality
• Securing stable revenue through steady growth in the After-Sales Service Business
• Improvement in gross margin through continuous efforts to reduce costs (operating margin of 11.9% in FY2026 (ending March 2026), a 3.0 percentage point improvement year on year)
• Expansion of sales in the carbon-neutral market, including compressors for CO2 recovery equipment
• Development of new markets through the promotion of research and development related to P2G systems
• Implementation of medium- to long-term sustainable growth measures based on the "2026 Medium-Term Management Plan (FY2026-FY2028)"

Risks

• The forecast for FY2027 (ending March 2027) is for a 9.0% year-on-year decrease in sales to ¥7,100 million, indicating a risk of a downturn following the large-scale orders
• Risk of downward revisions to capital investment plans due to heightened geopolitical risks such as U.S. tariff hikes, deteriorating Japan-China relations, and escalating tensions in Iran
• Selling, general and administrative expenses remaining elevated due to increased personnel expenses associated with wage increases (SG&A expenses up 5.0% year on year in FY2026 (ending March 2026))
• Sluggish sales in the hydrogen market due to a slowdown in the number of new hydrogen station constructions
• Risk of decreased sales of compressors for overseas petrochemical plants
• Risk of increased working capital burden associated with an increase in trade receivables (up ¥729 million in the current period)