MAX CO.,LTD.

Business Details

Manufactures and sells office machinery and stationery-related products including staplers, time recorders, character display devices (Beepop, Letatwin), and auto staplers. Comprises three businesses: Domestic Office Business, Overseas Office Business, and Auto Stapler Business. Primarily targets corporate customers domestically and internationally, with manufacturing also utilizing overseas bases in Thailand, China, and Malaysia. In FY2026 (ending March 2026), segment profit margin declined significantly to 16.7% from 20.5% in the prior period, falling below the company-wide average (17.6%).

Recent Overview

Stagnant orders in the Auto Stapler Business due to U.S. tariff measures weighed on results, leading to a significant profit decline of 2.0% revenue decrease and 19.9% profit decrease

In FY2026 (ending March 2026), the Office Equipment segment posted revenue of ¥21,438 million (down 2.0% year on year), segment profit of ¥3,587 million (down 19.9% year on year), and segment profit margin of 16.7% (down 3.8 points year on year), a significant deterioration. The main cause was the Auto Stapler Business (revenue down 8.0% year on year), where sluggish market conditions due to U.S. tariff measures and stagnant customer orders had an impact. Meanwhile, the Overseas Office Business secured revenue growth of +7.4% year on year, driven by increased sales of character display devices resulting from greater trade show participation in Europe. The Domestic Office Business posted a revenue decrease of 2.5% year on year due to weak trends in stationery-related products and office machinery.

Key Products

Growth Drivers

• Securing prospective deals and expanding sales of character display devices (Beepop) through increased trade show participation focused on Europe in the Overseas Office Business
• Promoting demand development in the domestic market through proposal activities for uses such as labels compliant with chemical substance regulations for character display devices
• Continuation of solid sales trends for stationery-related products in the Overseas Office Business

Risks

• Risk of continued sluggish market conditions and stagnant orders in the Auto Stapler Business due to the ongoing impact of U.S. tariff measures
• Risk of continued weak sales trends for domestic stationery-related products and office machinery
• Recovery of profitability is a challenge, as the segment profit margin has declined to 16.7%, below the company-wide average (17.6%)
• Foreign exchange risk (given the high ratio of overseas manufacturing bases and overseas sales, impact on revenue and profit when the yen appreciates)

Business Details

Manufactures and sells machine tools such as rebar tying machines, nailers, air compressors, and rechargeable tools, as well as residential environment equipment such as the bathroom heating/ventilation/drying unit "Dryfan" and whole-house 24-hour ventilation systems. With domestic and overseas construction and housing markets as its primary customers, this is the core segment, accounting for approximately 75.5% of consolidated revenue. Manufacturing is handled by Max Joban Co., Ltd., Max Takasaki Co., Ltd., MAX (THAILAND) CO., LTD., Max Machinery (Suzhou) Co., Ltd., and others, with sales conducted through overseas subsidiaries such as MAX USA CORP.

Recent Overview

The Overseas Machine Tools Business led overall results with substantial growth in rebar tying machine sales in Europe and the U.S., and profit margin also improved significantly

In FY2026 (ending March 2026), the Industrial Equipment segment achieved substantial revenue and profit growth, with revenue of ¥75,156 million (up 12.7% year on year) and segment profit of ¥18,955 million (up 29.9% year on year). The Overseas Machine Tools Business was particularly strong, with revenue of ¥41,192 million (up 23.8% year on year), as sales of rebar tying machines and their consumables increased substantially in Europe and the U.S. due to rising demand for mechanization amid labor shortages at construction sites and strengthened promotional activities. The Residential Environment Equipment Business also achieved revenue growth of 6.0% due to increased replacement demand. Meanwhile, the Domestic Machine Tools Business posted a slight revenue decrease of 0.9% due to a decline in construction floor space, among other factors. No impairment loss was recorded in the current period, compared to ¥57 million recorded in the prior period.

Key Products

Growth Drivers

• Expansion of stock-type demand for rebar tying machine consumables in the Overseas Machine Tools Business (increase in cumulative units in operation)
• Expansion of rebar tying machine sales in Europe and the U.S. due to rising demand for mechanization amid labor shortages at construction sites
• Solid trend in construction investment in the North American non-residential market (for infrastructure)
• Continued expansion of infrastructure investment and improvement in construction market conditions in Europe (Germany, etc.)
• Increased demand for the replacement-oriented "Dryfan" in the Residential Environment Equipment Business
• Securing prospective deals and developing new customers through strengthened promotional activities

Risks

• Decline in sales of tools for wooden buildings due to the continued slump in newly started housing units in Japan
• Sluggish U.S. housing starts due to persistently high mortgage interest rates and soaring material prices
• Risk of deteriorating market conditions due to U.S. tariff measures and policy trends
• Risk of a renewed slowdown in the construction market due to deteriorating economic conditions in Europe
• Foreign exchange risk (given the high ratio of overseas sales, significant impact on revenue and profit when the yen appreciates)
• Sluggish demand for machine tools due to the continued decline in domestic construction floor space started

Business Details

The HCR Equipment segment manufactures and sells nursing care/welfare equipment such as Standard Wheelchairs and Specialized Wheelchairs. It operates through both the domestic market and overseas markets centered on China, and is positioned as a small-scale segment accounting for approximately 3.0% of company-wide revenue (¥3,012 million out of ¥99,607 million). In FY2026 (ending March 2026), operating losses continued, and improving the profit base remains an ongoing challenge.

Recent Overview

Revenue declined but the loss margin narrowed; a decline in sales to China combined with domestic new product defects resulted in a third consecutive year of losses

In FY2026 (ending March 2026), the HCR Equipment segment posted revenue of ¥3,012 million (down 7.4% year on year) and segment loss of △¥42 million (a narrowing of the loss from △¥82 million in the prior period). Revenue decreased due to a decline in wheelchair sales to the Chinese rental market, combined with stagnant sales domestically caused by a defect that occurred in some new products. Meanwhile, the loss margin improved by ¥40 million year on year. No impairment loss was recorded in the current period (¥5 million was recorded in the prior period).

Key Products

Growth Drivers

• Recovery and expansion of overseas wheelchair sales centered on the Chinese rental market
• Improving profitability through productivity improvements and promotion of in-house production (medium-term management plan policy)
• Maintaining and expanding revenue through continuous introduction of new products (medium-term management plan policy)

Risks

• Risk of stagnant sales due to defects in new products in the domestic market
• Fragility of the profit base due to three consecutive periods of operating losses
• Limited capacity to absorb fixed costs given the small scale of approximately 3.0% of company-wide revenue
• Risk of fluctuations in overseas sales dependent on demand trends in the Chinese rental market