ENVALITH
椿本興業株式会社 logo

TSUBAKIMOTO KOGYO CO.,LTD.

8052・Prime Market・Wholesale Trade

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椿本興業株式会社 logo
TSUBAKIMOTO KOGYO CO.,LTD.8052

Business

Tsubakimoto Kogyo Co., Ltd., founded in 1916, is a general trading company specializing in machinery and technology, and forms a corporate group consisting of the company and 19 consolidated subsidiaries. Its main businesses comprise three segments: sales of machine parts such as chains (Power Transmission Components business), sales of products for automation, labor-saving, and environmental applications such as conveyance equipment (Equipment & Systems business), and sales of various nonwoven fabrics and manufacturing machinery (Industrial Materials business). Domestically, the company covers the entire country through a three-headquarters structure consisting of East Japan Headquarters, West Japan Headquarters, and Central Japan Headquarters, while overseas it maintains bases in Singapore, Thailand, China, Hong Kong, South Korea, Indonesia, and Vietnam. Its main customers span a broad range of industries, including general industry, heavy industry, automotive, food, and semiconductor manufacturing equipment makers, and the company conducts its business centered on a manufacturing-sales integrated cooperative relationship with the Tsubakimoto Chain Group.

Business Model

The Group's basic business model is that of a trading company, procuring machine parts, equipment/systems, and industrial materials from manufacturers—including the Tsubakimoto Chain Group—and selling them to industrial customers nationwide. Rather than merely selling goods, the Group leverages a competitive advantage built on "Engineering × Solutions," which combines three strengths: "proposal-capable personnel, a one-stop system, and a customer/business transaction base." It generates revenue by providing seamless support from identifying customers' latent issues through to post-installation operation and maintenance. In the Equipment & Systems business, revenue is recognized on a percentage-of-completion basis, and the order backlog enhances visibility into future sales.

Company Strengths

From FY2022 to FY2026, revenue expanded from ¥96,890 million to ¥131,032 million and operating profit expanded from ¥4,396 million to ¥6,513 million, growing for 5 consecutive fiscal periods, with both metrics setting new record highs. In FY2026, the ordinary profit margin on sales reached 5.4% and ROE reached 10.7%, results that exceeded the ordinary profit target set out in the medium-term management plan.

The consolidated order backlog at the end of FY2026 reached ¥79,818 million, distributed across headquarters as follows: West Japan Headquarters ¥39,574 million, East Japan Headquarters ¥24,232 million, Central Japan Headquarters ¥11,359 million, and Development Strategy Headquarters ¥7,213 million. In particular, the order backlog at Central Japan Headquarters surged to 127.4% year-on-year, confirming an accumulation of revenue to be recognized in subsequent periods.

The equity ratio at the end of FY2026 stood at 49.9%, significantly exceeding the 30% financial safety target. The company maintains a policy of keeping short-term and long-term borrowings to the necessary minimum, funding increases in working capital with cash on hand. Total net assets amounted to ¥50,201 million, an increase of ¥6,184 million year-on-year, with financial soundness maintained at a high level.

ENVALITH's Perspective

Cash flow from operating activities in FY2026 (ending March 2026) was ¥-3,553 million, a significant deterioration from ¥3,592 million in the previous period. The main cause was a one-time impact from a change in settlement methods—specifically a decrease in trade payables (¥-6,148 million) associated with the discontinuation of bill-based transactions and the shift to cash settlement—which the company explains is expected to normalize going forward. However, cash and cash equivalents stood at ¥24,100 million at period-end, down ¥-4,853 million year-on-year, and it will be necessary to continue monitoring trends in liquidity on hand until normalization of operating CF in subsequent periods is confirmed.

The order backlog at period-end was ¥79,818 million, turning to a slight decrease of -1.2% year-on-year. In particular, orders received at the East Japan Headquarters fell sharply to ¥42,094 million (down -9.2% year-on-year), and the order backlog also declined to ¥24,232 million (down -10.0% year-on-year). This is attributed mainly to declining demand for automotive-related components and semiconductor manufacturing equipment-related components, reflecting changes in the capital expenditure cycles of the semiconductor and automotive industries as an external environmental factor. The forecast for FY2027 (ending March 2027) sales of ¥132,000 million (up +0.7% year-on-year) indicates slowing growth, and the recovery trend in the order backlog remains an important point to watch as a leading indicator of business performance.

ROE in FY2026 (ending March 2026) declined to 10.7% from 11.2% in the previous period, but remained above the company's own target of 10%. Net assets per share rose significantly to ¥2,717.46 (from ¥2,382.17 in the previous period), and the equity ratio on a market value basis also improved to 52.7% (from 40.1% in the previous period). The annual dividend was ¥90 (including a commemorative dividend of ¥10), an increase of +¥10 year-on-year, and the company continues its policy of a dividend payout ratio of 32.9% and a consolidated dividend payout ratio of 30% or more. For FY2027 (ending March 2027), an annual dividend of ¥90 is also planned (interim ¥30, year-end ¥60). The substantive pace of increase in ordinary dividends excluding commemorative and special dividends, as well as the continuity of improvement in capital efficiency through the reduction of cross-shareholdings, will be key to enhancing market valuation.

Growth Strategy

As the first year of the new medium-term management plan, the company is promoting expanded sales of automation, labor-saving, and environment-related equipment while improving capital efficiency

The company is actively promoting proposals for automation and labor-saving across industries in general and expanding sales of environment-related equipment, aiming to secure orders and further expand revenue. Sales in the Equipment & Systems business reached ¥63,599 million in FY2026 (ending March 2026), up 11.9% year on year, and the company intends to continue this growth trajectory in subsequent periods.

Achieving ROE of 10% or more every fiscal period is shared across the entire group as an indicator of sustainable enhancement of corporate value. The company is promoting greater capital efficiency through maintaining and improving the operating margin, early collection of trade receivables, and planned reduction of cross-shareholdings. ROE for FY2026 (ending March 2026) reached 10.7%, achieving the target.

At the Board of Directors meeting held on May 8, 2026, the company resolved to dispose of treasury shares as restricted stock, with the Tsubako Employee Shareholding Association as the planned allottee. This aims to provide employees with incentives to enhance corporate value over the medium to long term and to strengthen investment in human capital.

The company will continue its ESG and SDGs initiatives, aiming to contribute to solving social issues through its business activities. The Development Strategy Headquarters is promoting new product development for the Sensing & Image Processing Business (New Products); however, sales in this area declined slightly in FY2026 (ending March 2026), and getting this business off the ground in subsequent periods remains a challenge.

Last updated: July 19, 2026