MAEZAWA KYUSO INDUSTRIES CO.,LTD.
6485・Standard Market・Machinery
Business
Maezawa Kyuso Industries was founded in 1957 as a manufacturer specializing in water supply equipment, with its core Water Supply Equipment Business manufacturing and selling Saddle-type Service Taps, Stop Valves, fittings, and related products used to connect households to water mains from distribution pipes. In addition, the company operates the Housing & Building Equipment Business, which handles Water Supply and Hot Water Piping Components for indoor use as well as Floor Heating Components, and the Merchandise Sales Business, which is responsible for the distribution of related purchased goods, making up three segments in total. Its main customers are water utilities, pipe material distributors, and water works contractors across Japan, and the company maintains a stable product supply system through 27 sales offices nationwide. Net sales for FY2026 (ending March 2026) were ¥31,683 million.
Business Model
Through an integrated in-house production system covering casting, processing, assembly, inspection, and mold-making, the company achieves stable supply of tens of thousands of high-mix, low-volume products. By combining flexible plant operations based on highly accurate demand forecasting with a nationwide sales network of 27 locations, it secures continuous orders from water utilities. Increases in raw material costs are appropriately passed through to selling prices, with price management implemented to maintain profitability. The company has also clearly stated its shareholder return policy, targeting a consolidated dividend payout ratio of 50%.
Company Strengths
The company's water supply equipment products have been adopted by nearly all waterworks utilities across Japan, with the number of products reaching tens of thousands. Since its founding in 1957, the company has continued to stably supply products excelling in safety, convenience, and workability for nearly 70 years, and this track record has built long-term relationships of trust and brand power with waterworks utilities, pipe material trading companies, and water supply construction contractors. This customer base constitutes a proprietary competitive advantage that is difficult for competitors to replicate in a short period.
At production sites, the company operates an integrated production system in which casting, processing, assembly, inspection, shipping, and mold design and manufacturing are all managed in-house, and it possesses proprietary manufacturing know-how based on years of experience and accumulated data. In FY2026 (ending March 2026), research and development expenses amounted to ¥374 million, and the company holds 143 domestic industrial property rights in total with 23 applications pending, with continuous investment in technology development supporting its competitiveness.
Through 27 sales offices nationwide, the company accurately grasps customer needs and has built an integrated sales-production system that enables prompt response from product development through manufacturing and supply. By combining sales capabilities that enable highly accurate demand forecasting with a flexible factory operation system that enables small-lot, high-mix production, the company has established a proprietary production management system.
ENVALITH's Perspective
Performance Trend
Net sales expanded from ¥28,789 million in FY2022 to ¥32,008 million in FY2024, then moved sideways at ¥31,957 million in FY2025 and ¥31,683 million in FY2026. Operating profit declined 14.2% from ¥3,046 million in FY2025 (a record high level) to ¥2,727 million in FY2026, mainly due to an increase in cost of sales (driven by soaring copper prices) and higher SG&A expenses (¥6,700 million). Ordinary profit also decreased 10.7% year on year to ¥2,982 million. Net income attributable to owners of parent rose 32.6% year on year to ¥2,683 million, supported by the recording of ¥749 million in extraordinary gains, including a ¥543 million gain from the extinguishment of shares through a merger, but underlying performance excluding one-time factors deteriorated. For FY2027 (ending March 2027), the company forecasts net sales of ¥32,400 million, operating profit of ¥2,700 million, and net income of ¥2,000 million, with net income expected to decline 25.5% year on year as the extraordinary gains fall away.
Growth Strategy
Steady capture of demand for aging pipe replacement and seismic resistance, combined with improvement of the profit structure in the Housing & Building Equipment Business
Continuing to secure steady product supply for water distribution pipe replacement work ordered by water utilities, while focusing on proposal activities for products with superior seismic resistance and constructability. The Company aims to capture structural demand from aging pipe renewal and seismic resistance while maintaining segment sales of ¥16,860 million and a profit margin of 30.1% in FY2026 (ending March 2026).
The Company continues its policy of appropriately reflecting increases in copper prices, energy costs, and transportation costs in selling prices to secure profitability. In FY2026 (ending March 2026), although price pass-through was implemented, cost increases exceeded it, resulting in an operating profit decline; in FY2027 (ending March 2026), the Company will defend profitability through both cost reduction and price pass-through under the same policy.
Amid the ongoing decline in new housing starts, the Company is promoting stronger sales of heating-related components, curbing unprofitable transactions caused by intensifying competition, and improving operational efficiency. The Company aims to maintain segment sales of ¥12,143 million and a profit margin of 16.9% in FY2026 (ending March 2026), while continuing expansion into non-residential fields.
In FY2026 (ending March 2026), construction in progress increased to ¥876 million (from ¥238 million in the previous fiscal year), reflecting the ongoing reconstruction work at the Saitama Distribution Center. The Company aims to improve production efficiency and reduce costs through capital investment of ¥1,258 million in expenditures for acquisition of property, plant and equipment.
In August 2025, the dividend policy was changed to a progressive dividend policy targeting a DOE of approximately 3%. Annual dividend for FY2026 (ending March 2026) is ¥63 (payout ratio 48.1%), and the forecast for FY2027 (ending March 2026) is ¥60 (payout ratio 61.1%). The Company maintains its overall shareholder return stance, combined with share buybacks (¥526 million in FY2026, ending March 2026).
Last updated: July 19, 2026