KANEMITSU CORPORATION
7208・Standard Market・Transportation Equipment
Business
Kanemitsu Corporation was founded in 1947, and since successfully achieving integral forming of Steel Sheet Pulleys through its independently developed rotary forming method in 1961, has consistently pursued technology-development-driven management as a specialized automotive parts manufacturer. Its core product, Steel Sheet Pulleys, is mounted on engine water pumps, crankshafts, alternators, and other components, and is supplied to domestic automakers and major parts manufacturers (such as Aisin). The plastic forming technology cultivated through pulley manufacturing has been applied and expanded to Transmission Parts, xEV Parts, EPS Parts, and robot components, supplied across the entire Asian region through a three-region structure comprising Japan, Southeast Asia (Thailand and Indonesia), and China. Consolidated net sales were ¥11,039 million (FY2026 (ending March 2026)).
Business Model
With three-dimensional steel sheet forming technology based on rotational molding and press-specific processes at its core, the company handles everything from design to manufacturing of lightweight, high-precision, low-cost parts. Production is carried out across a six-site network comprising three domestic plants (Miki, Kasai, Nagasaki) and three overseas subsidiaries (Thailand, Indonesia, China), with direct sales to automakers and Tier 1 parts manufacturers. Working capital and capital expenditure are funded primarily through internal resources, and the company maintains financial discipline with interest-bearing debt of ¥364 million while continuing capital investment and R&D activities (R&D expenses of ¥219 million in FY2026 (ending March 2026)).
Company Strengths
In 1961, the company succeeded in integrally forming Steel Sheet Pulleys using its proprietary rotational molding method, and has since deepened its technology over more than 60 years. It has established a three-pole R&D structure in Kasai, Nagasaki, and Thailand (Technical Center, Research Center, and Thailand Technical Center), investing ¥219 million in R&D expenses in FY2026 (ending March 2026). This accumulated technical expertise forms a unique entry barrier that competitors find difficult to replicate in a short period.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 77.2%, with interest-bearing debt (including borrowings and lease liabilities) at an extremely low level of ¥364 million. Net assets reached ¥12,723 million, and operating cash flow generated ¥2,116 million. The company's financial soundness, funding capital expenditure and R&D from its own resources while holding cash and cash equivalents of ¥3,651 million, demonstrates high resilience to fluctuations in the business environment.
Sales to the largest customer, Aisin Corporation, increased year on year to ¥2,119 million (19.2% of total sales) in FY2026 (ending March 2026). Domestic order backlog was maintained at ¥661 million (98.9% of the previous fiscal year), and continuous business relationships with major automotive parts manufacturers form a stable sales base.
ENVALITH's Perspective
Performance Trend
Revenue expanded sharply from ¥8,762 million in FY2022 to ¥11,091 million in FY2024, then remained flat at ¥11,117 million in FY2025 and ¥11,039 million in FY2026. Meanwhile, operating profit grew 4.4-fold over five periods, from ¥201 million in FY2022 to ¥879 million in FY2026, with the operating margin improving substantially from 2.3% to 8.0%. In FY2026 (ending March 2026), despite external headwinds such as sluggish domestic automobile sales in Thailand and weak sales among Japanese automakers in China, growth in orders for Non-Pulley Products (Other Automotive Parts) in China, expansion of domestic Transmission Parts, and a decline in the cost of sales ratio (from 77.5% to 75.7%) driven by productivity improvements contributed positively. Profit attributable to owners of parent rose substantially to ¥742 million (up 37.4% year on year). The absence of the ¥140 million provision for loss on damages compensation recorded in the previous period also contributed to the increase in net profit.
Growth Strategy
Adapting to the era of electrification through four pillars: pulleys, transmission parts, xEV parts, and motor core parts
As the mainstay product of the domestic segment, sales grew steadily to ¥3,189 million in FY2026 (ending March 2026) (up 1.2% from ¥3,152 million in the previous period). This has been a key contributor to domestic segment operating profit of ¥665 million (up 12.0% year on year), and the company continues to deepen relationships with existing customers while securing new orders.
As a core initiative to address electrification, the company is promoting the development and sales expansion of xEV Parts by applying its proprietary plastic forming technology. Management noted that in FY2026 (ending March 2026), increased orders driven by growing domestic demand for xEV Parts contributed to sales. Leveraging the external tailwind of the expanding electric vehicle market, this is being cultivated as a next-generation revenue source.
Positioned as one of the four pillars, the Motor Core Parts business is in a development stage against the backdrop of accelerating electrification in the market. Development continues as an application area for plastic forming technology, but there is currently no independent disclosure of figures in segment information; it is included within the other products category (¥3,085 million in FY2026 (ending March 2026)).
Amid the external headwind of sluggish sales of Japanese automobiles, the China segment limited the decline in sales to ¥822 million (down 5.0% year on year) through order growth in Non-Pulley Products (Other Automotive Parts) (other category), while achieving a substantial increase in operating profit to ¥54 million (up 315.8% year on year). Profitability recovered sharply through a combination of improved revenue mix and enhanced productivity.
Last updated: July 19, 2026