ENVALITH
株式会社ナンシン logo

NANSIN CO., LTD.

7399・Standard Market・Transportation Equipment

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株式会社ナンシン logo
NANSIN CO., LTD.7399

Business

Nanshin Co., Ltd., founded in 1947, is a specialist manufacturer of logistics equipment such as casters and trolleys, listed on the Standard Market of the Tokyo Stock Exchange. Japan is its core market, with the domestic segment accounting for approximately 94% of consolidated sales. The company has manufacturing subsidiaries in Malaysia and China, having built a global production framework. Major customers include distributors and trading companies such as Yamazen Corporation (18.1% of sales) and Honko Manufacturing Co., Ltd. (10.5% of sales). The company supplies products for a wide range of industries centered on the logistics, medical, and nursing care fields, and operates on two main pillars: the Casters business (sales of ¥5,829 million) and Others business (Trolleys & Roll Box Pallets, etc., sales of ¥3,949 million).

Business Model

Casters and Trolleys produced at three manufacturing sites in Japan, Malaysia, and China are sold to domestic and overseas customers through the domestic sales network (branches and sales offices) and via trading companies and distributors. The Malaysia and China sites also function as internal supply bases for Japan, with intercompany sales reaching ¥2,869 million for Malaysia and ¥1,259 million for China. Revenue depends on product sales, and the structure aims to maintain and improve profit margins through price revisions, optimization of the product mix, and cost reductions.

Company Strengths

Founded in 1947, the company has over 75 years of business track record and maintains a domestic sales network with branches and sales offices in Tokyo, Osaka, Nagoya, Kyushu, and other locations. Ongoing business relationships with major customers Yamazen Corporation (18.1% of sales) and Honko Manufacturing Co., Ltd. (10.5% of sales) form a stable sales foundation.

In addition to the domestic Chiba New Town plant, the company has established a tripolar production system with manufacturing subsidiaries in Malaysia and China (Suzhou). The Malaysia site handles internal group supply (¥2,869 million), while the China site sells to both external and internal customers, securing a segment operating margin of 11.2%. International diversification of production maintains cost competitiveness.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 83.0%, with total net assets of ¥12,133 million and cash and cash equivalents of ¥3,024 million. The company maintains sound financial health with low reliance on interest-bearing debt, being able to cover major funding needs with its own capital, and has the financial flexibility to swiftly execute capital expenditures and investments in human capital.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales came to ¥9,778 million (down 0.4% year on year), a slight decline, but reductions in cost of sales (from ¥7,619 million to ¥7,364 million) allowed gross profit to expand from ¥2,199 million to ¥2,414 million. The largest factor behind this improvement was the Japan segment's turnaround from an operating loss of ¥73 million in the prior period to operating profit of ¥57 million. The results reflect gains from optimizing product mix and improving production efficiency, and the improving trend in the profit structure can be positively assessed. However, against the target operating margin of 5%, the actual result was only 2.2%, and a significant gap remains.

The Malaysia segment posted net sales of ¥2,988 million (down 7.0% year on year) and an operating loss of ¥32 million, marking two consecutive periods of losses. Given the segment's structure, which is centered on intra-group supply, its ability to capture external demand is limited, and it carries a heavy fixed cost burden. External factors such as the slowdown in the Chinese economy and persistently high international logistics costs are also hindering the recovery of profitability in overseas operations. The forecast for FY2027 (ending March 2027) calls for operating profit of ¥300 million (up 42% year on year), but improvement in Malaysia's profit and loss is a precondition for achieving this target.

At the Board of Directors meeting held on May 8, 2026, a resolution was passed to acquire treasury shares of common stock, up to 300,000 shares and up to a total acquisition amount of ¥172,200,000, via ToSTNet-3. The purpose is shareholder returns and improved capital efficiency, and the overall return stance, combined with dividends (annual dividend of ¥20, payout ratio of 57.4%), can be positively assessed. On the other hand, the scale of the buyback amounts to only about 3.9% of shares issued (on a basis after deducting treasury shares), and its impact relative to net assets of ¥12,133 million is limited. Whether the FY2027 (ending March 2027) earnings forecast (net sales of ¥10,000 million, operating profit of ¥300 million) is achieved will determine the direction of the share price.

Growth Strategy

Aiming for sustainable growth through both the reconstruction of the management foundation (selection and concentration) and the strengthening of overseas business plus new product deployment

Concentrating management resources on products that leverage the company's strengths, and continuing price revisions in response to rising raw material prices, among other measures. In FY2026 (ending March 2026), cost of sales was reduced by ¥255 million, improving the gross profit margin from 22.4% to 24.7%. The company continues to pursue cost structure reforms toward its target operating margin of 5% or higher.

Strengthening the development structure to promote the rollout of new products for multiple fields including logistics, medical, and nursing care. Sales of the Others business (Trolleys, etc.) in the Japan segment expanded by approximately 18% year on year, with the effects of new product launches partly materializing. The company will continue to strengthen development and sales capabilities through investment in human capital.

Promoting customer development in industrial fields centered on ASEAN where the group's product strengths can be leveraged. The Malaysia segment invested ¥141 million in fixed assets to strengthen production capacity, but recorded an operating loss of ¥32 million in FY2026 (ending March 2026), continuing from the previous period. Expanding sales to external customers is key to achieving profitability.

The company plans to maintain an annual dividend of ¥20 (dividend payout ratio of 57.4%) in FY2027 (ending March 2027) as well. As a subsequent event, in May 2026 the company resolved to conduct a share buyback of up to 300,000 shares and ¥172,200,000 via ToSTNet-3. This demonstrates a proactive stance toward shareholder returns and improving capital efficiency.

Last updated: July 19, 2026