NIKKEN KOGAKU CO., LTD.
9767・Standard Market・Services
Mold Lending Business
Core business lending steel molds for manufacturing wave-dissipating and foundation-stabilizing blocks
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥1,527 million | ¥1,654 million | ↓ |
| Operating income | ¥59 million | ¥223 million | ↓ |
| Segment assets | ¥625 million | ¥859 million | ↓ |
| Depreciation expense | ¥140 million | ¥114 million | ↑ |
| Capital expenditures (increase in tangible and intangible fixed assets) | ¥163 million | ¥84 million | ↑ |
| Operating margin | 3.9% | 13.5% | ↓ |
Business Details
A service business that lends steel molds used for manufacturing wave-dissipating and foundation-stabilizing blocks in the fields of ports, fishing ports, coasts, rivers, and erosion control, to customers (partner factories, etc.). This is an asset-light business model without owning factories, maintaining a stable supply system through mold repair, maintenance, and transportation. The sales composition ratio was 24.6% in FY2026 (ending March 2026) (29.9% in the prior period), accounting for roughly a quarter of total company sales. Against the backdrop of social demand for disaster prevention and mitigation projects, mid- to long-term business opportunities are expected, but disaster recovery projects have continued to gradually decline in the near term.
Recent Overview
Sales and profit deteriorated significantly due to the continued decline in disaster recovery projects
In FY2026 (ending March 2026), the declining trend in disaster recovery and renovation projects due to typhoons and torrential rains from prior years continued, resulting in net sales of ¥1,527 million (down 7.7% year-on-year) and operating income of ¥59 million (down 73.4% year-on-year), a significant decline in earnings. On the other hand, capital expenditures reached ¥163 million (up ¥84 million year-on-year) as the company proactively invested in molds, and net sales of the mold lending business for the next fiscal year are forecast at ¥2,000 million (up 31.0% year-on-year).
Key Products
Growth Drivers
- Expectations for a mid- to long-term recovery in mold demand driven by rising social demand for disaster prevention and mitigation projects and national resilience policy
- Increasing demand for wave-dissipating and foundation-stabilizing blocks due to the intensification and increased frequency of natural disasters caused by climate change
- Efforts to expand product deployment and increase market share toward strengthening the resilience of public civil engineering facilities
- Continued implementation of measures to rationalize and streamline business operations across group companies, improving profitability
- Expansion of supply capacity through proactive investment in steel molds (capital expenditures of ¥163 million) ahead of the next fiscal year
Risks
- Risk of continued sluggish demand for molds due to decreased execution of disaster recovery projects following typhoons, torrential rains, and other disasters
- Increased costs across the construction industry due to rising labor costs and construction material prices, and tightening labor supply-demand conditions
- Structural risk of increasing dependence on the product sales business as the mold lending business's share of sales declined from 29.9% in the prior period to 24.6%
- Risk of global economic slowdown and fluctuations in public investment budgets due to the impact of U.S. trade policy and other factors
- Risk of dependence on the stability of the supply chain, requiring maintenance and strengthening of the partner company network
- Risk that the fixed cost burden will pressure profitability, as depreciation expense increased to ¥140 million year-on-year while operating income remained at only ¥59 million
Last updated: June 25, 2026