KANEMATSU ENGINEERING CO., LTD.

Kanematsu Engineering, founded in 1971 and headquartered in Kochi Prefecture, is a specialist manufacturer of environmental maintenance equipment. Its core products are High-Power Suction Vehicles (approximately 68% of net sales), High-Pressure Washer Vehicles (approximately 13%), and Powder & Granule Suction/Pressure-Feed Vehicles, with public- and private-sector operators in the sewerage, road, civil engineering/construction, and industrial waste treatment fields as its main customers. The company handles product development, design, assembly, painting, inspection, and sales in an integrated manner, and provides after-sales service through its nationwide branches/sales offices and the KCS Network (designated service factories). Cumulative shipments surpassed 15,000 units in April 2025, and the company holds a high share of the domestic market. It is listed on the Standard Market of the Tokyo Stock Exchange.

The company adopts a made-to-order production system tailored to individual customer specifications, differentiating itself through technical capability and quality. By procuring chassis in advance, it manages production lead times, and by building up order backlog, it secures visibility into the following period's sales. Parts Sales (accounting for approximately 9% of net sales) serve as a stable, recurring revenue source tied to the continued operation of previously delivered vehicles, forming a composite revenue structure combined with sales of core products. Technology transfer licensing to Chinese companies (royalty income) also serves as an additional revenue source.

Net sales bottomed out at ¥11,336 million in FY2023 (ended March 2023) and have grown for three consecutive fiscal periods, reaching a five-year high of ¥14,097 million (up 6.0% year on year) in FY2026 (ending March 2026). Operating profit rose sharply to ¥1,341 million (up 40.6% year on year), and net income attributable to owners of the parent surged to ¥1,041 million (up 48.6% year on year). The main drivers of the profit increase were steady progress in the production plan due to the stabilization of chassis deliveries and an improvement in the gross profit margin (from 24.1% to 26.9%) as the impact of soaring material costs subsided. Externally, resilient infrastructure development demand supported the order environment. On the other hand, for FY2027 (ending March 2027), the company forecasts a significant decline in both revenue and profit, with net sales of ¥13,000 million (down 7.8%) and operating profit of ¥940 million (down 29.9%), mainly due to a delay in delivery timing to the latter half of the period caused by a chassis model change and a resurgence in material cost inflation. As a result, the growth trajectory is expected to slow temporarily.