CONSEC CORPORATION

Business Details

Manufactures and sells drilling & cutting equipment such as core drills, wall cutters, and wire saws, as well as consumables including diamond core bits, blades, and wires. Production is carried out at domestic plants and Chinese subsidiaries (Nantong Concec Engineering Tools Co., Ltd. and Nantong Concec Semiconductor Tools Co., Ltd.), and the business is deployed both domestically and overseas together with the Taiwanese subsidiary (Shiang Jian Enterprise Co., Ltd.). The primary market is demand for drilling and cutting works for public infrastructure, and this is the largest segment, accounting for approximately 37% of the Concec Group's net sales.

Recent Overview

Steady growth in consumables sales drove revenue and profit increases; cost reduction efforts also contributed

In the Cutting Tools & Equipment Business for FY2026 (ending March 2026), net sales were ¥3,641 million (up 1.3% year on year), mainly due to favorable trends in consumables sales. Amid continuing increases in raw material and other costs, efforts to reduce costs also bore fruit, resulting in an increase in segment profit to ¥215 million (up 3.7% year on year). Capital expenditures decreased significantly to ¥26 million from ¥66 million in the prior period.

Key Products

Growth Drivers

• Continued expansion of demand for concrete drilling and cutting works against the backdrop of aging public infrastructure
• Expansion of sales of diamond cutting consumables (consumables sales trended favorably also in FY2026, ending March 2026)
• Renewal of and introduction of new mainstay products such as core drills and wire saws based on the Medium-Term Management Plan 2029 ("Challenge 2029 - Creating New Value")
• Expansion of order-taking areas by capturing the expansion of the repair and maintenance works market, centered on public works, as a growth opportunity
• Strengthening of competitiveness through investment in human capital management and DX promotion

Risks

• Intensifying competitive environment due to overseas consumables manufacturers entering the Japanese market (a continuing factor pushing down sales and profit)
• Quality issues in parts procurement at Chinese production sites and risks from political changes and regulatory restrictions
• Rising manufacturing costs due to soaring raw material prices (increases in raw material and other costs continued in FY2026, ending March 2026)
• Rising import costs due to exchange rate fluctuations (increased costs of parts procured from China, etc.)
• Risk of demand slowdown due to concerns over deceleration of overseas economies