ENVALITH
西川計測株式会社 logo

NISHIKAWA KEISOKU Co., Ltd.

7500・Standard Market・Wholesale Trade

Official website
西川計測株式会社 logo
NISHIKAWA KEISOKU Co., Ltd.7500

Business

NISHIKAWA KEISOKU Co., Ltd. is an engineering trading company founded in 1932, specializing in measurement, control, and scientific/chemical fields. It operates four business segments—Control & Information Equipment Systems (PA/FA), Measuring Instruments, Scientific & Chemical Instruments, and Industrial Equipment & Others—serving a wide range of industrial customers, from public infrastructure entities such as water and sewage, electric power, and gas utilities to sectors including semiconductors, chemicals, automobiles, food, and pharmaceuticals. A distinguishing feature of the company is that it goes beyond mere product sales to provide an integrated package of engineering, software development, instrumentation construction work, and maintenance services. As an authorized distributor of the Yokogawa Electric group and Agilent Technologies, it procures key products and delivers closely tailored services to customers through its nationwide network of sales offices. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company purchases measurement and control equipment from the Yokogawa Electric group and Agilent Technologies and sells to customers, with a distributor function at its core, while adding engineering, software development, instrumentation construction work, and maintenance services to achieve higher value-added. Against net sales of ¥38,719 million, gross profit was ¥8,786 million (gross profit margin of approximately 22.7%). Selling, general and administrative expenses were kept to ¥5,028 million (13.0% of net sales), securing operating income of ¥3,757 million (operating margin of 9.7%). Funding is fully covered by equity capital and operating cash flow.

Company Strengths

Revenue grew from ¥30,473 million and operating profit from ¥1,916 million in FY2021 to revenue of ¥38,719 million and operating profit of ¥3,757 million in FY2025, achieving +27.1% revenue growth and +96.1% operating profit growth over 5 periods. Profit growth has particularly accelerated since FY2024, and the improvement in earnings structure is confirmed numerically.

The equity ratio at the end of FY2025 stood at 60.4%, significantly exceeding the target of 50% or above, and ROE reached 13.8%, achieving the target of 10% or above. Net assets totaled ¥20,480 million, and cash and cash equivalents amounted to ¥9,606 million, maintaining a robust financial base close to debt-free management.

The order backlog at the end of FY2025 stood at ¥28,272 million (up 21.5% year-on-year). By item, Industrial Equipment & Others expanded sharply by 67.1% year-on-year to ¥5,940 million, and Measuring Instruments surged 93.1% to ¥1,667 million. Total orders received also reached ¥43,831 million (up 15.1% year-on-year), indicating robust demand and functioning as a leading indicator supporting revenue in subsequent periods.

ENVALITH's Perspective

Cumulative sales for the first nine months of FY2026 (ending June 2026) of ¥35,665 million reached 79.3% of the full-year forecast of ¥45,000 million, while operating profit of ¥3,908 million reached 95.3% of the full-year forecast of ¥4,100 million. Given the seasonal characteristic whereby both sales and profit are concentrated in the third quarter (January–March), achieving the remaining balance in the fourth quarter (April–June) appears sufficiently attainable. As the earnings forecast has already been revised upward, there is a high degree of confidence regarding the full-year outcome.

Notes and accounts receivable and contract assets as of the end of March 2026 stood at ¥15,158 million, up 97.3% from the end of the previous fiscal year, marking a substantial increase. While this reflects seasonal expansion associated with the concentration of sales in the third quarter, continued monitoring is warranted given that total assets expanded to ¥42,360 million (up 25.0% from the end of the previous fiscal year) and the equity ratio declined from 60.4% to 57.4%. Accounts payable also surged to ¥9,624 million (up 100.2% from the end of the previous fiscal year), and changes in the purchasing and sales cycle should be closely watched.

In terms of sales performance, Industrial Equipment & Others grew a robust 64.2% year on year, while orders received fell sharply by 50.4% year on year. This is likely attributable to a rebound effect following the completion of large-scale projects in the prior period; however, the order backlog also contracted by 40.5% year on year, raising the risk that this category's contribution to sales may decline in future periods. As an external factor, trends in capital expenditure in the automotive and semiconductor sectors will be key to a recovery in orders going forward.

Growth Strategy

Expanding value-added capabilities as an engineering trading company through the four strategies of SE2025

Steadily capturing equipment renewal demand related to lifelines (water, gas, electricity) through the existing customer base, while strengthening expansion into growth fields such as semiconductors and automobiles. Net sales for the cumulative nine months of FY2026 (ending June 2026) increased 13.3% year on year, with the effects of growth business expansion reflected in the figures.

Adding solutions such as lab DX to Scientific & Chemical Instruments sales, shifting from simple equipment sales to high-value-added proposals. Cumulative nine-month sales of Scientific & Chemical Instruments for FY2026 (ending June 2026) rose a steady 6.0% year on year, with differentiation through added solutions continuing.

Strengthening proposal-based sales that combine DX, IoT, and AI technologies with measurement and control systems. Orders received for Control & Information Equipment Systems increased 18.1% year on year, and order backlog increased 26.3% year on year, suggesting significant growth, indicating that the appeal of value-added proposals is contributing to order acquisition.

Advancing the maintenance of financial soundness and enhancement of shareholder returns in parallel. Revised the full-year dividend forecast for FY2026 (ending June 2026) upward to ¥350 per share (an increase of ¥30 year on year). While maintaining a sound equity ratio of 57.4%, net assets expanded to ¥24,293 million, up 18.6% from the previous fiscal year-end, due to an increase in the market value of investment securities (mainly Yokogawa Electric Corporation shares).

Last updated: July 17, 2026