ENVALITH
大和冷機工業株式会社 logo

DAIWA INDUSTRIES LTD.

6459・Prime Market・Machinery

Official website
大和冷機工業株式会社 logo
DAIWA INDUSTRIES LTD.6459

Business

DAIWA INDUSTRIES LTD. is a comprehensive manufacturer of commercial refrigeration and cooling equipment founded in 1958. Its core products are vertical and horizontal commercial refrigerators and freezers for kitchens, vertical showcases for stores, and ice machines, with major customers in the food service industry, retail, and food processing plants. In addition to manufacturing and selling products, the company provides integrated services encompassing the procurement and sale of store and kitchen equipment (merchandise), as well as inspection and repair services. It operates the Saiki Plant in Saiki City, Oita Prefecture, the Kanto Ohtone Plant in Kazo City, Saitama Prefecture, and the Fukuoka Plant in Dazaifu City, Fukuoka Prefecture, and began operating the Osaka Distribution Center in Higashiosaka City, Osaka Prefecture in May 2024. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The breakdown of net sales of ¥46,919 million (FY2025) is as follows: in-house product sales of ¥26,201 million (approx. 55.8% of the composition), merchandise procurement sales of ¥11,071 million (approx. 23.6%), and inspection and repair of ¥9,476 million (approx. 20.2%). In addition to high value-added earnings from product manufacturing, post-installation inspection and repair services form a stable earnings base accounting for approximately 20%. Capital expenditures are funded through operating cash flow, and the company maintains a robust financial foundation that is close to debt-free management.

Company Strengths

The operating margin for FY2025 remained at a high level of 15.9% (operating profit of ¥7,477 million on net sales of ¥46,919 million). The equity ratio stood at 75.4% (up 2.4 points year on year), with net assets of ¥70,549 million against total assets of ¥93,543 million. The period-end balance of cash and cash equivalents reached ¥59,210 million, indicating an extremely high level of financial soundness.

Sales from Inspection and Repair Services amounted to ¥9,476 million (approximately 20.2% of net sales), functioning as stock-type revenue that is relatively unaffected by economic fluctuations. This revenue has remained extremely stable, declining only 0.3% year on year, and serves as a support underpinning revenue that offsets fluctuations in product sales.

The company developed a total of 148 models of natural refrigerant Commercial Refrigerators and Freezers (Products) — 90 vertical models and 58 undercounter models — and has been rolling out sales sequentially. It offers IoT-based temperature management and remote maintenance, as well as an optional ion generator equipped with Plasmacluster technology. The company has also produced products that received the 2025 Good Design Award, achieving both compliance with environmental regulations and product differentiation.

ENVALITH's Perspective

In 1Q FY2026 (ending December 2026), net sales rose to ¥11,224 million (up 7.0% year on year), securing revenue growth, but operating income fell to ¥1,496 million (down 2.9% year on year), ordinary income declined to ¥1,518 million (down 1.1% year on year), and quarterly net income decreased to ¥1,003 million (down 1.0% year on year), with profits falling below the same period of the previous year. The cost of sales ratio rose to 45.1% from 42.9% in the same period of the previous year, and the structure in which rising raw material prices and price pressure from intensifying competition are squeezing profits continues.

The full-year forecast for FY2026 (ending December 2026) calls for net sales of ¥49,400 million (up 5.3% year on year) and operating income of ¥8,400 million (up 12.3% year on year). The 1Q progress rate against the full-year net sales forecast was 22.7%, roughly in line with typical years, but the progress rate for operating income remained at only 17.8%. Even taking into account the second-half-weighted earnings structure, achieving the full-year forecast amid continued elevated raw material costs will require an accumulation of sales volume and further progress in passing costs on to prices, and progress needs to be monitored closely.

The restaurant industry, the company's key customer base, is on an upward sales trend driven by the recovery in inbound demand and rising per-customer spending, but there is an inherent risk that chronic labor shortages and consumers' increasingly frugal spending amid rising prices could dampen capital expenditure appetite. In addition, during 1Q the company acquired 250,056 shares of treasury stock (for approximately ¥426 million), and while its stance of strengthening shareholder returns by leveraging ample cash can be viewed favorably, the balance with investment in business operations remains a point of continued attention.

Growth Strategy

Advancing evolution into a comprehensive kitchen equipment manufacturer through natural refrigerants, IoT, and HACCP compliance

Expanding the range of commercial refrigerators combining IoT functions that address labor-saving needs with natural refrigerants adopted ahead of environmental regulations. Vertical refrigerators and freezers for kitchens achieved 1Q sales of ¥2,864 million (up 18.9% year on year), realizing high growth as a core product category.

Began sales of a cube and crushed ice machine that received the 2025 Good Design Award and achieves industry-leading ice-making costs. The ice machine category recorded 1Q sales of ¥664 million (up 6.5% year on year), contributing to revenue growth.

Rolling out an optional ion generator equipped with Plasmacluster technology that sterilizes bacteria adhering inside refrigerators. The company is capturing hygiene management needs arising from mandatory HACCP compliance under the revised Food Sanitation Act, strengthening value-added proposals to existing customers.

Maintenance, inspection, and repair services for installed equipment showed stable performance, with 1Q sales of ¥2,354 million (up 1.5% year on year). The company aims to deepen long-term relationships with customers through comprehensive store operation support, including labor-saving initiatives and HACCP compliance.

Last updated: July 17, 2026