KOWA CO.,LTD.
7807・Standard Market・Other Products
Business
Kowa Co., Ltd. was established in 1987 and is headquartered in Sakai City, Osaka Prefecture, as a specialist manufacturer of welfare equipment. Centered on Silver Cars (walking carts), Walking Aids (Zista Series), and Canes, the company offers a wide range of nursing care products, including bathing and toileting support products, under its own brand "TacaoF (Teikobu)". Manufacturing is handled by a consolidated subsidiary in Dongguan, China, while domestic sales are conducted through five channels: nursing care route, mass retailers, EC, and rental. The main customers are individuals certified as requiring support or nursing care, as well as elderly people capable of walking independently, and the company handles both products covered by nursing care insurance and products purchased at the customer's own expense. The company listed on the JASDAQ market of the Tokyo Stock Exchange in 2017 and has since transitioned to the Standard Market. Operating under a six-company group structure, the business is projected to generate net sales of ¥6,394 million (forecast for FY2026 (ending February 2026)).
Business Model
The company controls manufacturing costs through in-house production at Dongguan Xingher Household Products Co., Ltd., and sells domestically through five channels: the nursing care route (via distributors), the chain store route, the OEM route, nursing care services (rental), and EC. Walking Aids (Zista Series) for the long-term care insurance rental market serve as the core revenue source, while expansion toward self-pay customers via EC and mass retailers is also being strengthened. The core segment, the Nursing Care Products & Welfare Equipment Manufacturing and Sales Business, accounts for approximately 86% of net sales, and maintains a segment profit margin of approximately 17.9%.
Company Strengths
The company has over 50 years of product development experience since starting Silver Car (walking cart) production in 1970. Since entering the walking aid market in 2007, it has continuously launched innovative products including "Teacob Little" (2010), "Citorea" (2020), "Swarina" (2022), and "Walking Aid (Zista Series)" (2024). It possesses product development capabilities that reshape industry standards, such as incorporating new mechanisms that eliminate the need for parking brake operation.
The company owns a consolidated subsidiary, Dongguan Xingho Household Daily Necessities Co., Ltd., in Dongguan City, Guangdong Province, China, which manufactures its core products—Silver Car (walking cart), walking aids, and Cane—in-house. Production results for FY2025 (ending February 2025) were ¥2,062,793 thousand on a manufacturing cost basis (104.5% year-on-year). Efforts are also underway to increase the in-house production ratio for some products in order to strengthen coordination with design and quality control, achieving both a stable supply system and cost management capability.
The company operates through five channels: the nursing care route, chain store route, OEM route, Nursing Care Service Business (rental), and EC (E-Commerce) Business, catering to both long-term care insurance-covered products and products purchased out-of-pocket. Sales to its largest customer, Panasonic Age-Free Co., Ltd., reached ¥1,312,099 thousand (20.6% of total sales), establishing a solid transaction base with major nursing care service providers.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has remained roughly flat, moving from ¥5,717 million (FY2022) to ¥6,404 million (FY2024) to ¥6,394 million (FY2026). Operating profit peaked at ¥948 million in FY2024, then declined for two consecutive years to ¥797 million (FY2025) and ¥748 million (FY2026). However, Q1 of FY2027 (ending February 2027) (March-May 2026) saw substantial improvement, with revenue of ¥1,799 million (up 2.1% year-on-year) and operating profit of ¥316 million (up 97.4% year-on-year). This was mainly driven by a reduction in selling, general and administrative expenses (from ¥613 million to ¥501 million); cost-reduction efforts succeeded even as import costs continued to rise due to yen depreciation as an external factor. The full-year forecast remains unchanged, projecting revenue of ¥6,403 million (up 0.2% year-on-year) and operating profit of ¥753 million (up 0.7% year-on-year).
Growth Strategy
Aiming for sustainable growth through three policies: transformation and expansion of existing businesses, operational efficiency improvement, and brand redesign
Against the backdrop of solid orders for the Walking Aid (Zista Series), the mainstay product, the company is working to strengthen its production and supply systems and maintain stable supply. It is advancing functional improvements to existing products and enriching its product lineup to respond to diversifying needs and enhance product competitiveness. In the first quarter of FY2027 (ending February 2027), results are beginning to emerge, with sales in the Nursing Care Products & Welfare Equipment Manufacturing and Sales Business increasing 6.9% year on year.
Through ongoing efforts toward continuous quality improvement and operational efficiency, the company is strengthening the profit base of its existing businesses. In the first quarter of FY2027 (ending February 2027), selling, general and administrative expenses decreased 18.3% year on year (from ¥613 million to ¥501 million), and the operating margin improved significantly to 17.6% (from 9.1% in the same period of the previous year), with the effects of these measures clearly reflected in the figures.
The company aims to expand its appeal to the design-conscious self-pay purchasing segment through its new brand "AURULA," while advancing its response to market trends emphasizing "ease of use," "safety," and "design" amid the progress of ICT, AI, and nursing care robot adoption. In the EC (E-Commerce) Business, sales declined 25.8% due to the reactionary effect following the previous year's advertising investment, making the continuation of measures for stable growth in channels targeting the self-pay market a key challenge.
Last updated: July 17, 2026