KOKEN LTD.

Business Details

Manufactures and sells occupational health and safety protective equipment including dust masks, gas masks, and powered air-purifying respirators. Major customers span a wide range, including industrial applications for the manufacturing and public works sectors, medical applications for healthcare institutions, and protective masks for the Ministry of Defense. Net sales for the first quarter of FY2026 (ending March 2026) (January to March 2026) were ¥2,484 million (up 10.5% year on year), making this the core segment accounting for approximately 88.1% of consolidated net sales of ¥2,820 million. Industrial and government-related demand trended favorably.

Recent Overview

In Q1 FY2026 (ending March 2026), the Mask-related Business grew 10.5% year on year, supporting the decline in consolidated profit.

Net sales of the Mask-related Business for the first quarter of FY2026 (ending March 2026) (January to March 2026) were ¥2,484 million (up 10.5% year on year). Industrial masks trended steadily, supported by demand for infrastructure development for public works. Medical masks saw a decline in sales compared to the same quarter of the prior year, which had carried a backlog of orders, but maintained a level exceeding pre-pandemic levels. Protective masks for government agencies exceeded the results of the same quarter of the prior year. On the other hand, due to a sharp rise in raw material prices and other costs, segment profit was ¥1,058 million, roughly flat compared to the same quarter of the prior year (¥1,054 million), and the profit margin declined. With the Environment-related Business posting a substantial decline in sales, the Mask-related Business has become the pillar supporting consolidated results.

Key Products

Growth Drivers

• Continued expansion of demand for protective masks for the Self-Defense Forces and government agencies, supported by increasing defense spending
• Firm demand for industrial masks for public works, driven by nationwide aging infrastructure
• Stable trend in industrial masks for the manufacturing sector
• Continued stable orders from medical institutions (sales maintained a level exceeding pre-pandemic levels)
• Expansion of sales of gas masks and related products (a substantial year-on-year increase in Q1 FY2026, ending March 2026)

Risks

• Cost pressure from the continued sharp rise in raw material prices, logistics costs, etc. (materialized in Q1 FY2026, ending March 2026)
• Risk of rising energy prices and supply chain disruption due to escalating tensions in the Middle East and other factors
• Impact on demand from the manufacturing sector due to changes in US trade policy and instability in international relations
• Sluggish growth in demand for medical masks in the absence of new infectious disease outbreaks
• Costs arising from responding to revisions to laws and regulations by the Ministry of Health, Labour and Welfare
• Fluctuation in the share of consolidated net sales as the Environment-related Business recovers