TOKYO KEIKI INC.
7721・Prime Market・Precision Instruments
Business
Tokyo Keiki is a long-established precision equipment manufacturer founded in 1896, with measurement, recognition, and control technologies at the core of its business. Its main segments consist of five businesses: Defense & Communication Equipment Business (approximately 42% of net sales), Marine & Port Equipment Business (approximately 22%), Hydraulic & Pneumatic Equipment Business (approximately 19%), Fluid Equipment Business (approximately 9%), and Others (approximately 7%). Its main customers span a wide range, including government agencies such as the Ministry of Defense and the Japan Coast Guard, shipbuilding companies, construction and machine tool manufacturers, and water and gas utility operators. The company has 9 subsidiaries and 2 affiliated companies in Japan and overseas, with production and sales bases in Vietnam, China, South Korea, and the United States. It is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The core Defense & Communication Equipment Business centers on made-to-order production for government agencies, with the order backlog (¥59,875 million as of the end of March 2026) securing visibility into future sales. In the Marine & Port Equipment Business, in addition to equipment sales for newbuilding vessels, maintenance services and repairs serve as a stable revenue source. The Fluid Equipment Business captures ongoing replacement demand for ultrasonic flowmeters and other products for the government demand market. By combining product sales with maintenance and repair services across each business, the company is enhancing the stability of its earnings.
Company Strengths
As of the end of March 2026, the order backlog of the Defense & Communication Equipment Business stood at a high level of ¥43,235 million, equivalent to approximately 1.7 years of the segment's annual sales of ¥26,015 million. Orders have been accumulating mainly in Aircraft-Mounted Equipment and Naval Vessel-Mounted Equipment, providing high revenue certainty over the medium term.
The company operates five businesses—Defense & Communication Equipment, Marine & Port Equipment, Hydraulic & Pneumatic Equipment, Fluid Equipment, and Others—and achieved revenue growth across all segments in FY2026 (ending March 2026). Its customer base is diversified across government and private demand as well as domestic and overseas markets, which mitigates the risk of fluctuations in any specific market. The company also maintains a sound financial base, with an equity ratio of 53.7%.
The company possesses multiple core technologies, including microwave technology, gyroscope technology, ultrasonic technology, hydraulic technology, and signal/image processing technology, and has demonstrated its advanced technological capabilities through track records such as being commissioned by the Acquisition, Technology & Logistics Agency (ATLA) for a research contract on "MEMS Hemispherical Resonator Gyroscope / Inertial Navigation Technology." Research and development expenses for FY2026 (ending March 2026) amounted to ¥2,883 million.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) were ¥61,186 million (+6.1% YoY), operating profit was ¥5,362 million (+10.4%), ordinary profit was ¥5,492 million (+9.8%), and profit attributable to owners of parent was ¥4,005 million (+5.5%), with all profit items increasing; operating profit and ordinary profit both reached record highs. The main driver was the Defense & Communication Equipment Business (net sales +6.6%, operating profit +43.3%), supported by strong sales of Aircraft-Mounted Equipment, Naval Vessel-Mounted Equipment, and Space-Related Equipment. All five segments achieved revenue growth. The operating profit margin improved to 8.8% (from 8.4% in the previous period). Net sales over the past five fiscal years have followed an expanding trend, moving from ¥41,510 million → ¥44,296 million → ¥47,166 million → ¥57,650 million → ¥61,186 million.
Growth Strategy
Under the "Tokyo Keiki Vision 2030," the company is promoting the expansion of the defense business and global niche top businesses along with the strengthening of its management foundation
Building up a production system to increase output of Aircraft-Mounted Equipment and Naval Vessel-Mounted Equipment against a backdrop of expanding defense budgets. Plans to deliver large-scale projects such as MEMS Hemispherical Resonator Gyroscope research in FY2027 (ending March 2027), aiming for net sales of ¥31,100 million and operating profit of ¥3,500 million (+49.3%) in the Defense & Communication Equipment Business. Production facility enhancements, including test equipment, have already been implemented to support increased defense-related output.
Advancing the development and mass production of Doppler lidar for the defense market through capital investment and a business alliance with Metroweather Co., Ltd.; developing products that combine image enhancement and AI camera technology through investment in Logic and Design Inc.; and promoting R&D of edge AI systems utilizing DAPDNA in the Hydraulic & Pneumatic Equipment Business.
Promoting DX including renewal of the company-wide core system to improve business processes and transform the business model. Implementing environmental improvements to support sustainable business expansion and strengthening employee engagement through relocation of the head office. Continuing to strengthen human capital by increasing headcount and enhancing training in line with sales growth.
Adopting a policy of stable progressive dividends, with a dividend per share of ¥40 planned for FY2026 (ending March 2026) (an increase from ¥35 in the previous fiscal year) and ¥48 planned for FY2027 (ending March 2027) (a further increase of ¥8). The dividend payout ratio is maintained at a low level of 16.4% (FY2026), balancing growth investment with shareholder returns.
Last updated: July 19, 2026