SANKYO CO., LTD.
6417・Prime Market・Machinery
Business
SANKYO Co., Ltd. is a pachinko/pachislot machine manufacturer founded in 1966, listed on the Prime Market of the Tokyo Stock Exchange. The company manufactures and sells pachinko machines and pachislot machines under a two-brand structure comprising the SANKYO brand and the Bisty brand, and also operates the Supply Equipment Business, including supply devices for halls and Card System Equipment. Its main customers are pachinko/pachislot halls (parlors), and it provides one-stop services ranging from the supply of gaming machines to facility equipment through a nationwide sales network. Across the group, which consists of 6 subsidiaries and 1 affiliated company, the Pachinko Machine Business is the core business, accounting for approximately 67% of net sales.
Business Model
The company manufactures and sells Pachinko Machines and Pachislot Machines to parlors, recording revenue based on unit sales volume for each model. In addition, related parts sales and royalty income also serve as revenue sources. In the Supply Equipment Business, the company provides one-stop services linked to gaming machine sales to secure customer loyalty. It promotes cost reduction through parts commonization, improved recycling rates, and development efficiency, achieving a high operating profit margin of 41.2% in the Pachinko Machine Business.
Company Strengths
In FY2026 (ending March 2026) as well, the company achieved a pachinko machine unit sales share of 30% or more, maintaining the industry's top share for the fourth consecutive fiscal year. Unit sales reached 251 thousand units (up 27 thousand units year on year), and the company achieved high profitability with net sales of ¥119,809 million and an operating margin of 41.2%. Its long-standing customer base and diverse product lineup under a two-brand structure make it difficult for competitors to catch up.
With 280 R&D staff and total R&D expenses of ¥21,500 million (FY2026, ending March 2026), the company has continuously created tie-up machines with extremely popular IPs such as Evangelion, Blue Lock, and Gundam SEED. The pachislot machine "L Pachislot Kakumeiki Valvrave 2" achieved sales of over 30,000 units, among other results, demonstrating the company's proven ability to create hit titles.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 86.5% (up 2.3 percentage points year on year), and the company held cash and cash equivalents of ¥192,400 million. While maintaining debt-free management, the company carried out share buybacks of ¥60,000 million and dividend payments of ¥22,400 million in FY2026 (ending March 2026). The company has the financial strength to cover working capital and capital expenditure needs in principle with internal funds.
ENVALITH's Perspective
Performance Trend
Revenue expanded rapidly from ¥84,857 million in FY2022 to ¥199,099 million in FY2024, but has since declined for two consecutive periods to ¥191,821 million in FY2025 and ¥179,211 million in FY2026. Operating income also worsened, falling from ¥73,605 million in FY2025 to ¥62,484 million in FY2026 (down 15.1% year on year), with the operating margin declining from 38.4% to 34.9%. The main cause was a sharp drop in unit sales in the Pachislot Machine Business due to delays in model testing approval (unit sales fell approximately 35% year on year to 90 thousand units). The Pachinko Machine Business remained solid, with unit sales of 251 thousand units and segment profit of ¥49,386 million (up 12.7% year on year), but this was not enough to fully offset the decline in Pachislot machines. The company's forecast for FY2027 (ending March 2027) calls for further declines, with revenue of ¥174,000 million and operating income of ¥56,000 million, and whether the plan to sell 127 thousand Pachislot units can be achieved will be key to a recovery in performance.
Growth Strategy
Sustainable growth through expanded share in both the pachinko and pachislot markets and the creation of new content IP businesses
Through price revisions under "SANKYO Yell Price," the company aims to reduce the burden of new machine introductions on parlors and revitalize the market. Pachinko unit sales for FY2027 (ending March 2026) are planned at 225 thousand units (down 26 thousand units year on year), a decline is expected, but the company aims to maintain profitability through the creation of popular models and cost reductions while pursuing top share for a fifth consecutive term.
Toward the FY2027 (ending March 2026) pachislot unit sales plan of 127 thousand units (up approximately 41% year on year), the company aims to enhance the number of titles sold and enrich its lineup. Premised on improved conformity status in model testing, the company is working on strengthening alliances, achieving a stable number of titles introduced, and creating hit titles. In FY2026 (ending March 2026), delays in model testing limited results to 4 titles and 90 thousand units.
In addition to digital initiatives, the company is promoting the acquisition of new fans and the reactivation of dormant fan segments through the deployment of cafes where customers can casually experience Hanemono machines, and rental plans that allow Hanemono machines to be introduced at low cost. This is positioned as a measure to expand the fan population in response to the structural contraction of the parlor market.
The company is working to create new businesses centered on the secondary use and development of gaming machine content, as well as the creation and development of content IP including manga and anime. It aims to expand into business areas capable of generating synergies with the existing gaming machine business, thereby diversifying revenue over the medium to long term.
Last updated: July 19, 2026