ASAHI KAGAKU KOGYO CO.,LTD.
7928・Standard Market・Chemicals
Business
Asahi Kasei Kogyo Co., Ltd., founded in 1962, is a specialized plastic molding manufacturer headquartered in Hekinan City, Aichi Prefecture. In addition to its domestic head office plant, the company has two overseas subsidiaries—Asahi Plastics (Kunshan) Co., Ltd. in Kunshan, China, and Asahi Plus Co., Ltd. in Thailand—operating a three-country structure for the molding of plastic products and the design and manufacture of molds for resin molding. Its main customers are in the power tool industry (the Makita Group) and the automotive industry (Inoac Corporation and others), with sales to these two industries accounting for 93.5% of total net sales. The company is listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange.
Business Model
The main revenue sources are contracted plastic molding and mold manufacturing for power tool components and automotive components. This is a customer-concentrated model in which the three Makita Group companies alone account for 58.7% of net sales. To complement this, the company is promoting product improvements and new product development for its proprietary resin anchor plugs, aiming to diversify its customer base. The structure pursues production cost optimization across three sites in Japan, China, and Thailand, while enhancing manufacturing efficiency through investment in equipment automation and labor-saving measures.
Company Strengths
Since commencing business with Makita (formerly Makita Electric Works) in 1969, the company has maintained a transactional relationship spanning over 50 years. In FY2025 (ending August 2025), Makita (China) Co., Ltd. accounted for 23.5%, Makita (Kunshan) Co., Ltd. for 22.3%, and Makita Corporation for 12.9% of net sales, with the three Makita Group companies combined accounting for 58.7% of net sales. Orders for the power tool industry increased across all three countries.
The company has established a three-site structure comprising its domestic head office plant (Hekinan City, Aichi Prefecture), its Kunshan plant in China (established 2001), and its Thailand plant (established 2011). In FY2025 (ending August 2025), the China Segment posted net sales of ¥3,930 million, making it the Group's largest source of revenue, while the Thailand Segment showed high growth, with net sales of ¥912 million, up 20.7% year on year.
At the end of FY2025 (ending August 2025), net assets stood at ¥5,290 million and total assets at ¥6,678 million, resulting in an extremely high equity ratio of approximately 79.2%. With current liabilities of ¥1,196 million against fixed liabilities of only ¥190 million, total liabilities are small, and the company maintains sound financial health based on its fundamental policy of funding working capital and capital expenditure from internal resources.
ENVALITH's Perspective
Performance Trend
Net sales peaked at ¥10,409 million in FY2021 and continued on a declining trend thereafter, but cumulative net sales for Q3 FY2026 (ending August 2026) reached ¥6,537 million (up 3.0% year on year), indicating a gradual recovery. On the profit side, the company fell into an operating loss of ¥46 million for full-year FY2025, but turned profitable with an operating profit of ¥37 million on a cumulative basis through Q3. As an external factor, yen depreciation, which boosted the yen-converted sales of China and Thailand, was the main driver. Ordinary profit was ¥100 million (up 34.6% year on year), supported by subsidy income of ¥21 million and interest received of ¥44 million. Comprehensive income improved significantly to ¥444 million from ¥-178 million in the same period of the previous year, with the foreign currency translation adjustment account increasing by ¥401 million. The full-year earnings forecast (net sales of ¥8,500 million, operating profit of ¥70 million) remains unchanged from the announcement made on April 13, 2026.
Growth Strategy
Three pillars: expansion of power tool component orders, production automation, and new business development (plant factory and waste material recycling)
Promoting the introduction of automation equipment and labor-saving measures across all bases in Japan, China, and Thailand. Aiming to improve quality and prevent defect leakage through the operation of camera-based defect detection equipment. Continuing implementation through the third quarter of FY2026 (ending March 2026), with depreciation expenses increasing from ¥185 million in the same period of the previous year to ¥291 million, indicating that capital expenditures are currently ahead of the resulting benefits.
Orders for power tool components continue to increase across the three bases in Japan, China, and Thailand, centered on the major power tool manufacturer Makita Group. In China, mold sales increased significantly year on year (¥279 million), laying the groundwork for future mass-production orders for products. This is a core initiative driving overall group revenue growth.
Promoting research and development of a business providing safe and reliable food ingredients using a plant factory, as well as a new business utilizing waste material recycling. The aim is to diversify the business by leveraging existing plastic molding technology and equipment. Currently at the R&D stage, with limited contribution to business performance at this time.
Last updated: July 17, 2026