GRAPHITE DESIGN INC.
7847・Standard Market・Other Products
Business
Graphite Design, Inc., founded in 1989, is a manufacturer specializing in carbon golf shafts, with its head office and factory located in Chichibu City, Saitama Prefecture. Its main customers are golf club manufacturers and distributors in Japan and the United States, and its core business is the manufacture and sale of shafts for relatively high-priced, high-value-added golf clubs. The company is characterized by its "design-in" approach, in which it jointly develops products with club manufacturers from the planning stage, and it also undertakes contract work for Golf Club Assembly Processing and Others. It is also promoting the commercialization of CFRP Applied Products that leverage carbon fiber lamination technology, and its shares are listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company secures OEM orders through a "design-in" approach, participating from the new product planning stage of club manufacturers, and earns revenue through stable mass-production supply. In parallel, it is cultivating an aftermarket business that sells in-house brand shafts to end users via retailers. PRO'S CHOICE GOLF SHAFTS, INC., its US distributor, accounts for 37.1% of net sales and serves as a key channel, with a structure whereby brand exposure through tour support for PGA Tour players helps drive aftermarket sales expansion.
Company Strengths
The company adopts a "design-in" approach, participating in proposals and joint development from the golf club manufacturer's planning stage. By developing and providing dedicated shafts tailored to the concept and performance of club heads, it has built deep customer relationships that go beyond being a mere parts supplier, forming high entry barriers that competitors cannot easily replicate.
As of the end of February 2025, the company held an equity ratio of 74.3% and cash and cash equivalents of ¥3,967 million, while interest-bearing debt remained limited to ¥756 million. This financial structure, characterized by ample liquidity on hand and low leverage, underpins the company's capacity to respond to capital investment and business diversification, with financial soundness standing out even within the industry.
Sales to the US distributor PRO'S CHOICE GOLF SHAFTS, INC. increased approximately 69% year-on-year, from ¥675 million in the previous fiscal year to ¥1,142 million in the current fiscal year, with its share of total sales rising from 25.4% to 37.1%. This reflects the success of penetrating the in-house brand shafts into the US market and enhancing brand exposure through PGA Tour support.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue bottomed out at ¥2,653 million (FY2024) before recovering to ¥3,074 million in FY2025, only to slow again to ¥2,712 million in FY2026, reflecting continued volatility in business performance. In Q1 FY2027 (ending February 2027) (March–May 2026), revenue reached ¥970 million (up 49.9% year-on-year), operating profit came to ¥193 million (up 478.0% year-on-year), and quarterly net profit was ¥154 million, marking a substantial improvement. The main driver was golf shaft order volume from the U.S. distributor exceeding expectations, combined with an external factor whereby the foreign exchange loss of ¥41 million recorded in the same quarter of the previous year turned into a foreign exchange gain of ¥23 million this quarter, leading to a significant improvement in ordinary income/loss. The full-year forecast remains unchanged at revenue of ¥2,890 million (up 6.6% year-on-year) and operating profit of ¥307 million (up 96.1% year-on-year).
Growth Strategy
Aiming for revenue stabilization through three pillars: U.S. market expansion, production infrastructure strengthening, and CFRP diversification
Expanding golf shaft order volume through deepening relationships with U.S. distributors is the top priority. In Q1 of FY2027 (ending February 2027), order volume exceeded expectations, achieving a 57.4% year-on-year increase in net sales for the same quarter. Continued enhancement of tour support for PGA Tour players to improve brand exposure is also ongoing.
Aiming to improve the cost ratio through enhanced production capacity and leveling of operating rates enabled by the new factory's operation. Gross profit margin for Q1 of FY2027 (ending February 2027) remained at a high level of 56.7%, and strengthening the production base is expected to contribute to earnings stabilization.
Strengthening expansion into the iron shaft market centered on the in-house brand "RAUNE", aiming to diversify earnings away from dependence on wood shafts. The Golf Club Assembly Processing and Others segment continued to struggle in Q1, with sales of ¥56 million, down 15.3% year on year, and revitalization remains a challenge.
Applying the carbon fiber lamination technology developed in golf shaft manufacturing to CFRP (Carbon Fiber Reinforced Plastic) products, promoting earnings diversification for industrial applications beyond sporting goods. Earnings contribution is currently limited, and progress in commercialization will be a key point for medium- to long-term evaluation.
Last updated: July 17, 2026