ENVALITH
理想科学工業株式会社 logo

RISO KAGAKU CORPORATION

6413・Prime Market・Machinery

Official website
理想科学工業株式会社 logo
RISO KAGAKU CORPORATION6413

Business

Riso Kagaku Corporation is a printing equipment specialist manufacturer founded in 1955, selling its core products—the high-speed inkjet printer "ORPHIS" and the digital printer "RISOGRAPH"—worldwide. The Printing Equipment-Related Business, which accounts for approximately 98% of consolidated net sales, covers not only the development and manufacture of the equipment itself but also the Inkjet Heads business (through its subsidiary, Riso Technologies). Its sales network spans Japan, the Americas, Europe, and Asia, with overseas sales accounting for approximately 53% of the total. The company also operates peripheral businesses such as the Real Estate Business (leasing of company-owned buildings), the Print Create Business, and the Digital Communication Business, but the bulk of earnings comes from the Printing Equipment-Related Business.

Business Model

In addition to sales of equipment bodies (inkjet printers and stencil printing machines), the business secures stable revenue by continuously providing consumables such as ink and masters, along with maintenance services. Manufacturing is conducted domestically (Ibaraki and Yamaguchi) as well as at bases in Thailand and China, with a direct sales structure built through sales subsidiaries around the world. The in-house production of the inkjet head business is structured to ensure a stable supply of components and capture added value.

Company Strengths

The company directly owns multiple sales subsidiaries in the Americas, Europe, and Asia. In FY2026 (ending March 2026), overseas sales reached ¥41,551 million (up 1.7% year on year), accounting for approximately 53% of total sales. Europe performed solidly with a 5.6% year-on-year increase, with the direct sales structure contributing to maintaining price and service quality.

In July 2024, RISO Technologies Corporation began operating the Inkjet Heads business, achieving in-house production of core components. In FY2026 (ending March 2026), the incremental effect on sales and gross profit from the integration of the heads business was confirmed, functioning both in terms of technical differentiation and profit contribution.

At the end of FY2026 (ending March 2026), the equity ratio reached 72.3%, and total net assets reached ¥68,792 million. The company held cash and cash equivalents of ¥15,533 million, and has also secured overdraft agreements with multiple financial institutions (totaling ¥15,629 million, with an unused balance of ¥11,889 million). Reliance on interest-bearing debt is low, and financial stability is high.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) declined sharply to ¥5,111 million (down 17.3% year on year). While gross profit rose only slightly to ¥47,225 million (up 0.4% year on year), selling, general and administrative expenses increased by ¥1,267 million to ¥42,113 million (from ¥40,846 million in the previous period). The main causes were business integration costs and increased expenses due to yen depreciation, and the operating margin declined from 6.5% to 6.5% (on a real basis, from 7.9% to 6.5%). Strengthening the profitability of the Inkjet Business remains the most critical ongoing challenge.

In FY2026 (ending March 2026), the company recorded foreign exchange gains of ¥303 million (versus a foreign exchange loss of ¥319 million in the previous period), extraordinary income of ¥677 million from gains on sale of investment securities, and extraordinary losses comprising ¥101 million from liquidation of a subsidiary and ¥87 million from valuation losses on investment securities. As a result, net profit increased to ¥4,378 million (up 7.1% year on year). However, on an operating profit basis, profit declined, indicating that the increase in net profit depended on items below ordinary profit. As foreign exchange rate fluctuations directly affect performance as an external factor, continued monitoring is warranted.

The earnings forecast for FY2027 (ending March 2027) is revenue of ¥80,900 million (up 2.4% year on year), operating profit of ¥4,900 million (down 4.1% year on year), and net profit of ¥4,100 million (down 6.4% year on year). While revenue is expected to increase due to the business transfer of a distributor in the Philippines, one-time costs and goodwill amortization expenses associated with this business transfer are expected to weigh on operating profit. In addition, the risk of rising prices for raw materials and components stemming from the situation in the Middle East is partially factored into the forecast for the next fiscal year, and downside risk remains depending on how the situation develops.

Growth Strategy

Transforming the corporate structure through strengthening inkjet profitability, expanding overseas sales networks, and creating new businesses

The Inkjet Heads business was integrated through an absorption-type company split completed in July 2024. The aim is to strengthen cost competitiveness through in-house component production and to realize technological synergies. Goodwill amortization for FY2026 (ending March 2026) has increased to ¥543 million, requiring continued demonstration of integration effects.

The business transfer of the Philippine distributor is planned for the next fiscal year (FY2027, ending March 2027). While revenue growth is expected, one-time expenses and goodwill amortization are anticipated to weigh on operating profit. This is part of measures to strengthen the sales network in order to maintain and expand the overseas sales ratio, which exceeds 52%.

The FY2027 (ending March 2027) management policy sets forth "strengthening the profitability of the Printing Equipment-Related Business," positioning the improvement of the Inkjet business's profitability as the top priority. In parallel, efforts to create new businesses continue. Peripheral businesses such as Print Create and Digital Communication continue to post losses (segment loss of ¥369 million in FY2026, ending March 2026), and achieving profitability remains a challenge.

Last updated: July 19, 2026