Naito & Co.,Ltd.
7624・Standard Market・Wholesale Trade
Business
Naito & Co.,Ltd. is a machine tools trading specialist founded in 1953. It handles three categories: Cutting Tools (approximately 49% of sales), Industrial Equipment & Machine Tools, etc. (approximately 41%), and Measurement (approximately 9%), with manufacturers as its main customers. Domestically, it operates branches, offices, and distribution centers nationwide, and overseas it has bases in Vietnam (consolidated subsidiary), Thailand, and China (equity-method affiliates). Its parent company is Okaya & Co., Ltd. It is listed on the TSE Standard Market. Under its medium-term management plan "Achieve2025" (March 2021 to February 2026), it aims to establish an "All-in-One Business" encompassing everything from product sales to after-sales service.
Business Model
The core model is wholesale: procuring Cutting Tools, Measurement equipment, Industrial Equipment & Machine Tools, etc. from domestic and overseas manufacturers and selling them to manufacturing customers. The company enhances customer convenience through digitalization of order processing via NICE-NET (Order Platform) and EDI integration, as well as by expanding inventory to strengthen product lineup. It is also nurturing value-added revenue sources such as the proprietary brand "Victory End Mill" and its Inspection & Calibration Services business. A notable feature is its thin-margin structure, with an operating margin of approximately 0.9%.
Company Strengths
Founded in 1953 with over 70 years of operating history, the company operates branches, offices, and distribution centers nationwide from Tohoku to Kyushu. In March 2024 (Reiwa 6), it newly established the Gifu office, continuing to expand its network of locations. The customer base built on long-standing transaction records and relationships with supplier manufacturers form the foundation of its competitive advantage.
The equity ratio at the end of FY2026 (ending March 2026) [note: source likely intends fiscal year ending February 2026] stood at 74.9% (up 2.8 percentage points year on year). Interest-bearing debt stood at an extremely low level of ¥73 million, limiting financial risk. Backed by net assets of ¥12,911 million, the company maintains financial stability even amid economic fluctuations.
In the core Cutting Tools category, the company steadily implements sales promotion programs and campaigns with its core manufacturers, while also developing its own original brand, "Victory End Mill." In the fiscal year ending February 2026, sales of Cutting Tools reached ¥21,552 million (up 0.5% year on year), the only category to exceed the prior-year level among all categories.
ENVALITH's Perspective
Performance Trend
Sales over the past five fiscal years remained flat in the ¥44,000–44,500 million range before showing a slight downward trend, at ¥43,555 million in FY2025 and ¥43,518 million in FY2026. The full-year forecast for FY2027 (ending February 2027) anticipates a recovery to ¥45,000 million (+3.4%). Operating profit peaked at ¥886 million in FY2023 and has declined for five consecutive periods; the full-year forecast of ¥400 million represents a further slight decrease from ¥403 million in FY2026. In the current Q1, front-loaded demand ahead of price revisions by cutting tool manufacturers (an external factor) and inventory build-up demand driven by supply concerns led to a substantial increase in sales to ¥13,110 million and operating profit to ¥324 million. However, the full-year forecast has been left unchanged, reflecting a conservative outlook that factors in a reversal of this front-loaded demand.
Growth Strategy
Under "Kyoso Vision 2030," the company aims to become a specialized-capability company through three pillars: an all-in-one business model, digitalization, and overseas expansion.
In March 2026 (Reiwa 8), the Kobe office was upgraded to the Hyogo Branch, strengthening the sales structure. As the first year of the medium-term management plan "Kyoso Vision 2030," the company is steadily executing key initiatives and promoting community-based expansion of customer touchpoints.
For spot items centered on equipment projects, the company is focusing on strengthening proposal activities for automation and labor-saving products and expanding new product offerings. In the current Q1, the Industrial Equipment & Machine Tools, etc. category struggled with a year-on-year decline of 0.9%, and boosting sales through enhanced proposal capabilities remains a challenge.
The company is promoting improved sales efficiency through the utilization of its sales support system. It continues to enhance ordering convenience through NICE-NET (Order Platform) and EDI integration, as well as strengthening product lineup through expanded inventory, while also leveraging exhibitions and seminars to reinforce value-added proposals to customers.
NAITO VIETNAM CO.,LTD. (Vietnam) is working to expand orders centered on equipment projects in the Ho Chi Minh City and Hanoi areas, aiming to increase sales. SOMAT Co.,Ltd. (Thailand), in light of the slowdown in automotive-related demand, is advancing expansion into non-automotive fields, environment-related products, and the Measurement equipment field.
Last updated: July 17, 2026