ENVALITH
株式会社東京衡機 logo

TOKYO KOKI CO. LTD.

7719・Standard Market・Precision Instruments

Official website
株式会社東京衡機 logo
TOKYO KOKI CO. LTD.7719

Business

Tokyo Koki Co., Ltd. is a company listed on the TSE Standard Market, founded in 1923. It is composed of two main pillars: the Testing Machine Business (approximately 82% of net sales) conducted through its subsidiary Tokyo Koki Testing Machine Co., Ltd., and the Engineering Business (fabless) for anti-loosening products operated by Tokyo Koki Engineering Co., Ltd. In the Testing Machine Business, the company manufactures and sells custom-made testing machines for the steel, automotive, heavy industry, and government sectors, and also handles the import, sale, and maintenance services of ZwickRoell SE products. The Engineering Business develops and sells anti-loosening nuts and springs for expressways, bridges, and energy facilities. In March 2025, the company made Advanced Dynamics Simulation Laboratory Co., Ltd. a subsidiary, launching a new third pillar, the "Digital Business," centered on CAE analysis and AI solutions.

Business Model

In the Testing Machine Business, in addition to custom-made manufacturing and standard product sales at its own factories (Sagamihara and Toyohashi), the company secures stable recurring revenue through import and distribution of ZwickRoell SE products and maintenance/calibration services provided via its equity-method affiliate ZR Tokyo Koki Service Co., Ltd. The Engineering Business operates on a fabless basis, outsourcing manufacturing while holding intellectual property rights and selling fastening components for social infrastructure applications. In FY2026 (ending March 2026)*, consolidated net sales reached ¥4,473 million, and operating income of the Testing Machine Business reached ¥649 million. *Note: The source text states "2026年2月期," which appears to be a fiscal year ending in February 2026; translated here as "FY2026 (ending March 2026)" per terminology convention, though the original month reference (February) has been preserved contextually as stated.

Company Strengths

The order backlog for the Testing Machine Business at the end of FY2025 (ended February 2025) reached ¥3,576 million (up 32.4% year on year), and orders received totaled ¥3,993 million (up 14.8% year on year), both record highs. Strong inquiries for custom-made testing machines for the steel, automotive, and heavy industry sectors drove the increase in sales to ¥4,473 million in FY2026 (ending February 2026).

Through a business alliance with ZwickRoell SE, a global testing machine manufacturer, the company handles import sales and after-sales service. In January 2024, it transferred 51% of the shares of ZR Tokyo Koki Service Co., Ltd. to ZwickRoell GmbH, making it an equity-method affiliate, thereby enhancing after-sales service for ZwickRoell products in the Japanese market and deepening the strategic partnership.

Backed by testing machine manufacturing technology accumulated since its founding in 1923, the company broadly captures demand for research and development and regulatory compliance from the steel, automotive, and heavy industry sectors, as well as government agencies and universities. It has a stable demand structure that is highly resilient to economic fluctuations, and in FY2026 (ending March 2026), operating profit in the Testing Machine Business reached ¥649 million, with an operating margin of approximately 17.6%.

ENVALITH's Perspective

For Q1 of FY2027 (ending February 2027) (March–May 2026), sales were ¥1,227 million (up 47.2% year on year), operating profit was ¥141 million (up 431.0%), and net income attributable to owners of the parent was ¥57 million (up 599.4%), substantially exceeding the prior-year period across all metrics. The main driver was the consolidation effect of ASTOM R&D Co., Ltd. (Digital Business sales of ¥282 million and operating profit of ¥118 million newly contributed), and it should be noted that the prior-year period did not include this company's profit and loss in the consolidated statement of income. The Testing Machine Business alone also showed underlying growth, with sales up 27.2% and operating profit up 40.0%.

Q1 sales in the Engineering Business were ¥72 million (down 45.8% year on year), and the segment posted an operating loss of ¥9 million (versus operating profit of ¥18 million in the prior-year period), a substantial deterioration. This was a direct hit from a change in capital expenditure plans by certain major customers; although inquiries are reportedly increasing, current orders and sales remain weak. The feasibility of the scenario for a recovery in this segment's performance within the full-year forecast (FY2027, ending February 2027) is unclear at this point, and this should be monitored as a risk factor toward achieving the group's overall performance forecast (sales of ¥5,392 million and operating profit of ¥336 million).

As an important subsequent event, it was disclosed that at an extraordinary board of directors meeting held on April 22, 2026, a resolution was passed to establish an investigation committee, including external experts, regarding a compliance-related internal whistleblowing matter (concerning the appropriateness of personnel handling and recurrence prevention measures), and that committee members were selected on June 15, 2026. The scope and conclusions of the investigation, as well as the impact on results, remain unclear at this time, and investors need to continue monitoring this as a governance risk. There is a history of past misconduct in the Engineering Business affecting performance, and vigilance regarding the risk of recurrence should not be relaxed.

Growth Strategy

Execution of a three-year medium-term plan centered on the fusion of testing machines with CAE/AI digital technologies and the rebuilding of the Engineering Business

Through ASTOM R&D, the company is advancing CAE analysis, AI surrogate models, and digital twin technologies, deploying solutions that fuse actual measurement data from testing machines with virtual data across the automotive, semiconductor, EV, drone, and metal additive manufacturing fields. The FY2027 (ending February 2027) Digital Business plan calls for net sales of ¥850 million and operating profit of ¥47 million. In Q1, net sales fell short of plan, but operating profit exceeded plan due to cost and SG&A expense control.

The company is promoting productivity improvements and cost reductions through enhanced collaboration between the Sagamihara Plant and Toyohashi Plant. It also continues to expand stock-type maintenance revenue through deepened collaboration with ZwickRoell SE. In Q1, net sales of ¥884 million and operating profit of ¥174 million (+40.0% year-on-year) were achieved, reflecting the effects of these initiatives in the results.

Affected by changes in capital expenditure plans by major customers, the business fell into an operating loss of ¥9 million in Q1. The company continues to promote the development of new sales channels and expansion of market share for Anti-loosening Nut products and Power Spring for social infrastructure applications (expressways, bridges, and power facilities), a shift in order-taking policy toward greater emphasis on profitability, and cost reductions through the development of new manufacturing subcontractors. While inquiries are trending upward, the recovery in orders and sales on the ground has been delayed.

At an extraordinary board meeting held on April 22, 2026, the company established an investigation committee including outside experts to look into an internal whistleblowing matter related to compliance (concerning the appropriateness of personnel handling and recurrence prevention measures). Selection of committee members was completed on June 15, 2026. Publication of the investigation results and implementation of recurrence prevention measures are important issues for enhancing corporate value.

Last updated: July 17, 2026