MIYAIRI VALVE MFG. CO., LTD.

Business Details

The company's core business is the manufacture and sale of valves and equipment for controlling energy gases such as LPG (liquefied petroleum gas) and LNG (liquefied natural gas). Products are classified into Brass Valves (Valves for LP Gas Cylinders / Bulk Equipment Valves), Steel Valves (valves for LP gas storage equipment, LNG valves, medical valves, fire extinguishing equipment valves, etc.), and Other. Over 90% of net sales are to domestic customers, with Yazaki Energy System Corporation (net sales of ¥679 million in the current period) and Shoei Kiko Co., Ltd. (¥601 million) as major customers.

Recent Overview

Return to profitability as the prior period's Antimonopoly Act-related special loss did not recur; both sales and profit improved

In FY2026 (ending March 2026), net sales were ¥7,044 million (up 3.8% year on year), operating profit was ¥111 million (up 35.5% year on year), and net income was ¥60 million (a turnaround from a net loss of ¥74 million in the prior period). Increases in LP gas cylinder valves, marine-use valves, and revenue from scrap sales drove the improvement. The main reason for the improvement in net income was the disappearance of the ¥148 million Antimonopoly Act-related special loss recorded in the prior period. The company responded to soaring brass material prices and rising costs through expense reductions and productivity improvements. For FY2027 (ending March 2027), the company forecasts net sales of ¥7,300 million, operating profit of ¥140 million, and net income of ¥80 million.

Key Products

Growth Drivers

• Increased sales of valves for LP gas cylinders (¥3,413 million in the current period, up 8.7% year on year)
• Increase in marine-use valves (¥346 million, up 11.5% year on year) and other steel valves (¥153 million, up 22.9% year on year)
• Increase in scrap sales revenue (¥1,151 million, up 13.9% year on year), driven by higher factory utilization rates and rising brass material prices
• Expected increases in valves for LP gas cylinders, bulk equipment valves, marine-use, and automotive-use valves in the next period (FY2027, ending March 2027)
• Continued efforts to improve profitability through cost reduction, productivity improvement, diversification of procurement sources, and product price increases
• Strengthening and expanding the low-temperature valve business, including LNG valves and hydrogen valves (being developed as a second core business)

Risks

• Continued pressure on manufacturing costs due to persistently high brass material prices and accelerating yen depreciation and inflation
• Global disruption and impact on the domestic economy from the tariff policy and America First stance of the Trump administration in the US
• Concerns over deteriorating profitability due to rising resin material costs, freight charges, and other expenses
• Decline in sales of bulk equipment valves (¥872 million in the current period, down 13.9% year on year) and automotive-use valves (¥147 million, down 16.3% year on year)
• Structural maturation and shrinking trend in the domestic market for LP gas cylinder valves (the company's core market)
• Continued high level of interest-bearing debt (short-term borrowings of ¥1,242 million, long-term borrowings of ¥1,036 million): borrowing burden associated with capital expenditure
• Continued low operating margin (1.6% in the current period): fundamental improvement of the profit structure remains a challenge
• Decline in cash and cash equivalents (¥260 million at period-end), reducing liquidity buffer