Shinsho Corporation
8075・Prime Market・Wholesale Trade
Business
Shinko Shoji is the core trading company of the KOBELCO Group, established in 1946 as a wholly owned subsidiary of Kobe Steel. The company operates five units: Steel (Specialty Steel & Steel Plate Products), Aluminum & Copper (Non-Ferrous Metals, Raw Materials), Raw Materials (Ferrous Scrap, Biomass Fuel), Machinery (Industrial Machinery, Decarbonization-Related Equipment), and Welding (Welding Materials, Equipment), conducting global operations through 42 consolidated subsidiaries and 19 equity-method affiliates at home and abroad. Its main customers are manufacturers such as automakers, parts makers, and steel makers, with sales to Kobe Steel accounting for 7.0% of net sales (¥42,682 million). The company transitioned to the Prime Market in 2022 and is pursuing the strengthening of its trading company functions and business investment under the Medium-Term Management Plan 2026.
Business Model
The main source of revenue is trading margin from the procurement and sale of steel, non-ferrous metals, machinery, and other products. In addition, financial income such as equity in earnings of affiliates and dividends received, along with manufacturing, processing, and service functions through domestic and overseas subsidiaries, supplement earnings. 42 consolidated subsidiaries in Japan and overseas operate locally self-contained supply chains, with local subsidiaries in North America, Asia, and Europe responding to local production-for-local-consumption needs. The structure aims to diversify revenue sources through business investment in areas such as resource recycling and decarbonization-related equipment.
Company Strengths
Since its establishment in 1946, the company has served as Kobe Steel's core trading company, handling exclusive sales and procurement functions for Specialty Steel & Steel Plate Products, Raw Materials, and other items. In FY2026 (ending March 2026), sales to Kobe Steel amounted to ¥42,682 million (7.0% of net sales), with intra-group transactions forming a stable earnings base.
The company operates 42 consolidated subsidiaries and 19 equity-method affiliates across the United States, Europe, China, Southeast Asia, India, Australia, and other regions. Starting with the establishment of a U.S. subsidiary in 1966, the company has progressively expanded to build locally self-contained supply chains in North America and Asia. Global supply capabilities to automakers' overseas production sites serve as a source of competitive advantage.
Since 2011, the company has successively acquired Matsuboh Co., Ltd., Kobelco Tsutsunaka Trading, N.I.WEL, Morimoto Kosan, Inagaki Shoten Co., Ltd., Nippon Granulator, and Kinzoku Yozai, among others. Most recently, in January 2026, it acquired Kinzoku Yozai Co., Ltd., achieving functional complementarity and expanded trading volume in the welding, non-ferrous metals, and resource recycling fields.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥494,351 million in FY2022 (ended March 2022) to ¥617,177 million in FY2025 (ended March 2025), but declined to ¥608,142 million in FY2026 (ended March 2026), marking a second consecutive year of decrease. Operating profit peaked at ¥13,459 million in FY2023 (ended March 2023) and has fallen for four consecutive fiscal years to ¥11,577 million in FY2026 (ended March 2026). The main external factors were declines in steel product and primary raw material prices, and a sharp drop in equity in earnings of affiliates (from ¥1,596 million in the previous period to ¥584 million in the current period). On the other hand, foreign exchange losses shrank significantly (from ¥1,763 million in the previous period to ¥232 million in the current period), and the provision for allowance for doubtful accounts also decreased (from ¥1,477 million to ¥108 million), resulting in a smaller decline in ordinary profit (down 6.3%) than in operating profit (down 12.4%). Operating cash flow improved year on year to ¥8,447 million. The company forecasts a recovery in FY2027 (ending March 2027), projecting revenue of ¥686,000 million and operating profit of ¥12,100 million.
Growth Strategy
Toward the final year of the Medium-Term Management Plan 2026, the company is advancing three pillars: deepening its relationship with the KOBELCO Group, building an independent supply chain, and SX (Sustainability Transformation) investment
In addition to maintaining stable supply of primary raw materials to the Kobe Steel Group, the company is promoting expanded handling of specialty steel wire rods and steel plate products for the automotive field. In FY2026 (ending March 2026), automobile production volume remained roughly flat year on year and recovered in the second half, but the Steel Unit posted lower revenue and profit (net sales of ¥250,092 million, down 3.0% year on year) due to declining demand for construction applications and falling steel prices.
Copper Products achieved higher profit due to increased handling of copper sheet strips for terminal connectors and copper tubes for air conditioning. Handling volumes of welding materials and equipment also increased both domestically and overseas, leveraging overseas bases in Thailand, China, and elsewhere. Aluminum Products saw lower revenue and profit due to decreased handling volume for automotive applications, and Non-Ferrous Raw Materials also saw lower profit due to decreased handling volume, leaving these as remaining challenges.
Through expanded handling of decarbonization-related equipment (non-general-purpose compressors, refrigeration and heat pump equipment, hydrogen generation equipment), PVD Equipment (for semiconductors), and equipment for U.S. LNG, the Machinery Unit achieved significant profit growth, with net sales of ¥63,726 million (up 4.2% year on year) and profit of ¥3,046 million (up 33.3% year on year). The Resource Recycling Business has seen declining profitability amid sluggish domestic demand, which remains a challenge for improvement.
Last updated: July 19, 2026