KIKUSUI HOLDINGS CORPORATION

Business Details

The Group operates the manufacturing and sale of electrical measuring instruments, etc. as a single segment. Its core products are Power Supply Equipment (DC Power Supplies, AC Power Supplies, Electronic Loads), and Electronic Measuring Instruments (Safety-related Test Equipment, Aviation Measuring Instruments). The company focuses on four key markets: e-mobility, next-generation energy, power semiconductors, and data centers, providing solutions business to customers in Japan and overseas. Overseas sales were ¥5,151 million (up 12.2% year on year), accounting for approximately 35% of total sales, with a focus on the U.S., China, India, and Southeast Asia.

Recent Overview

In FY2026 (ending March 2026), net sales and each profit line reached record highs, and dividends were increased, including a commemorative dividend

In FY2026 (ending March 2026), the company achieved net sales of ¥14,687 million (up 9.4% year on year), operating income of ¥2,135 million (up 6.9% year on year), and net income of ¥1,609 million (up 11.8% year on year). It captured capital investment demand in the automotive, energy, semiconductor, and data center-related markets. Overseas sales expanded to ¥5,151 million (up 12.2% year on year). On the other hand, increases in overseas product procurement costs, personnel expenses, and R&D expenses put some pressure on profit margins, with the operating margin declining to 14.5% (from 14.9% in the prior period). The company newly established a subsidiary in India and added it to the scope of consolidation. It retired 1,100,000 treasury shares. The year-end dividend was increased to a total of ¥69 (an ordinary dividend of ¥59 plus a commemorative dividend of ¥10), compared to ¥53 in the prior period. For FY2027 (ending March 2027), the company forecasts net sales of ¥14,700 million, operating income of ¥2,150 million, and net income of ¥1,620 million.

Key Products

Growth Drivers

• Continued capture of capital investment demand in the automotive and EV-related markets (DC power supplies, safety-related test equipment)
• Expanding demand for AC and DC power supplies for data center-related markets (U.S., Southeast Asia, India)
• Increased demand for power supply equipment in the semiconductor-related market driven by expanding AI demand
• Active capital investment in the SDGs market related to renewable energy and green policies
• Favorable trends in safety-related test equipment for the battery-related market in China
• Capturing EV and data center-related demand in emerging markets such as India and Southeast Asia (establishment of an Indian subsidiary)
• Strengthening marketing and user relations through the promotion of sales DX
• Continued development of internationally competitive products and R&D investment (R&D expenses of ¥1,359 million)

Risks

• Spillover effects on capital investment restraint due to U.S. trade policy (reciprocal tariffs) and geopolitical risk
• Stagnation of the Chinese economy and capital investment restraint in the automotive-related market
• Overall sluggish trends in the European market (excluding some demand for aerospace applications)
• Profit margin pressure from rising overseas product procurement costs and increased personnel expenses due to base pay increases, etc.
• Rising procurement costs for parts, etc. due to inflation
• Increased expenses associated with the promotion of DX
• Risk of demand fluctuation in the automotive-related market due to concerns over a slowdown in the shift to EVs
• Risk of price competition due to intensifying competition in the electrical measuring instrument industry