Shinsho Corporation
8075・Prime Market・Wholesale Trade
Steel
A core segment of Kobelco Trading. The mainstay unit within the Metals Segment, centered on Specialty Steel & Steel Plate Products, selling domestically and internationally.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥250,092 million | ¥257,791 million | ↓ |
| Segment Profit | ¥4,738 million | ¥5,602 million | ↓ |
| Segment Assets | ¥158,287 million | ¥160,148 million | ↓ |
| Depreciation and Amortization | ¥605 million | ¥656 million | ↓ |
| Interest Income | ¥40 million | ¥58 million | ↓ |
| Interest Expense | ¥873 million | ¥1,037 million | ↓ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥751 million | ¥337 million | ↑ |
Business Details
Sells rod steel, cast & forged steel, titanium, stainless steel products, iron powder, etc., domestically and overseas, centered on Specialty Steel & Steel Plate Products. Key affiliated companies include Shinsho Steel Sales Co., Ltd., Morimoto Kosan Co., Ltd., Grand Blanc Processing, L.L.C., Nippon Stud Welding Co., Ltd., and Osaka Seiko Co., Ltd. Automobile and construction applications are the primary end markets, and the unit has built a global supply chain including sales to overseas Japanese automakers. This is the unit with the largest share of sales within the Metals Segment (comprising the Steel, Aluminum & Copper, and Raw Materials units).
Recent Overview
Declines in construction-related demand, falling steel prices, and shrinking equity-method investment income combined to reduce both sales and profit year on year.
In FY2026 (ending March 2026), the Steel Unit posted net sales of ¥250,092 million (down 3.0% year on year) and segment profit of ¥4,738 million (down 15.4% year on year). Although automobile production volume remained roughly flat year on year, declining demand from the construction sector and falling steel prices led to lower sales. Regarding financial income and expenses, while interest income received increased, the sharp decline in equity-method investment income—from ¥1,596 million (consolidated total) in the prior period to ¥584 million—contributed to the profit decline. Capital expenditure increased to ¥751 million from ¥337 million in the prior period, indicating continued investment in facilities.
Key Products
Growth Drivers
- Investment to expand business areas in the automotive field and specialty steel wire rod under the Medium-Term Management Plan 2026
- Utilization of the global supply chain serving overseas Japanese automobile production bases
- Profit-boosting effect from improved financial income and expenses, including increased dividends received
- Strengthening of the future earnings base through expanded capital expenditure (¥751 million in FY2026)
- Recovery in demand for specialty steel and steel plate products driven by a rebound in automobile production volume in the second half
Risks
- Decline in demand for specialty steel and steel plate products due to lower automobile production volumes (domestic and overseas)
- Risk of continued weak demand in the construction sector
- Impact on sales and profit from falling steel prices
- Risk of continued contraction in equity-method investment income (sharply declined in FY2026)
- Risk of deteriorating performance at overseas subsidiaries
- Supply chain disruption due to US tariff policy and geopolitical risk
Last updated: June 19, 2026