ENVALITH
杉本商事株式会社 logo

SUGIMOTO & CO., LTD.

9932・Prime Market・Wholesale Trade

Official website
杉本商事株式会社 logo
SUGIMOTO & CO., LTD.9932

Business

Sugimoto Shoji, founded in 1938 and headquartered in Osaka, is a specialty trading company handling machine tools and measuring instruments. It deals in measuring instruments, work tools, machine tools, pneumatic and hydraulic equipment, and other products, and is organized domestically into three regional segments—East (Tokyo area, 17 sales offices), Central (Nagoya area, 16 sales offices), and West (Osaka area, 26 sales offices)—plus an overseas segment (Trade Department). Its main customers span manufacturing industries broadly, including companies related to automobiles, steel, semiconductors, secondary batteries, and data centers. The company moved to the Prime Market in 2022, and consolidated net sales for FY2026 (ending March 2026) were ¥48,612 million.

Business Model

Each sales office operates on an independent profit-and-loss basis, running a margin-based business model that procures and sells machine tools and measuring instruments to local manufacturing customers. Beyond simple product supply, the company is strengthening proposal-based sales addressing customers' labor-saving, automation, and DX (digital transformation) challenges. Through a capital and business alliance with INDUSTRIAL-X, it has added end-to-end services ranging from DX consulting through implementation, aiming to enhance added value.

Company Strengths

Operates a total of 64 sites: 17 sales offices in the Eastern region, 16 in the Central region, 26 in the Western region, and the Overseas Trading Department. Each sales office conducts community-based proposal sales on an independently profitable basis, and the customer base and regional supplier chain relationships accumulated over more than 80 years since the company's founding in 1938 make it difficult for competitors to imitate in the short term.

The equity ratio at the end of FY2026 (ending March 2026) stood at 77.9%. In addition to cash and cash equivalents of ¥8,300 million, the company holds ¥3,764 million (non-consolidated) in readily convertible investment securities held purely for investment purposes. It has also secured overdraft facilities totaling ¥8,000 million with partner financial institutions, establishing a framework capable of maintaining financial stability even amid economic downturns.

The overseas segment achieved sales of ¥1,916 million (up 10.8% year on year) in FY2026 (ending March 2026). Transactions with China, Vietnam, and India remained robust, with continued demand in semiconductor-related fields in China, and increasing transaction volumes in Vietnam and India driven by market expansion. Diversified expansion across multiple Asian markets reduces the risk of dependence on a single market.

ENVALITH's Perspective

Revenue for FY2026 (ending March 2026) declined to ¥48,611 million (down 1.7% year-on-year), marking the first revenue decrease in five fiscal years. Operating profit fell sharply to ¥2,047 million (down 14.5% year-on-year). Meanwhile, profit attributable to owners of parent increased to ¥2,112 million (up 10.2% year-on-year) due to the recognition of ¥533 million in gain on sale of investment securities, securing profit growth; however, this stemmed from a one-time extraordinary gain, and the deterioration in operating profit margin to 4.2% (from 4.8% in the prior period) is a concern, indicating a decline in core business profitability. As external factors, weakening demand in the steel, construction, machine tool, consumer electronics, and EV-related sectors, combined with rising raw material prices, pressured revenue across all segments.

The full-year earnings forecast for FY2027 (ending March 2027) projects revenue of ¥51,100 million (up 5.1% year-on-year), operating profit of ¥2,070 million (up 1.1% year-on-year), ordinary profit of ¥2,565 million (up 0.6% year-on-year), and profit attributable to owners of parent of ¥1,736 million (down 17.8% year-on-year). While a revenue recovery is expected, net profit is forecast to decline sharply due to the absence of the prior period's extraordinary gain. The full-year revenue target of ¥51,100 million under the 4th Medium-Term Management Plan matches the FY2027 forecast, raising the likelihood of achievement, but improving operating profit margin (returning to target levels) remains a challenge.

As a result of ¥2,999 million in treasury stock repurchases during the period, the treasury stock balance swelled to ¥6,933 million, and total net assets declined to ¥34,007 million (down ¥1,477 million from ¥35,485 million in the prior period). The equity ratio also fell from 83.7% to 77.9%, and new short-term borrowings of ¥2,300 million arose. The dividend was set at ¥54 per share (a substantial increase from ¥35 in the prior period, adjusted for the stock split), clearly demonstrating a strengthened stance on shareholder returns. However, the pace of declining financial soundness needs to be continuously monitored in balance with core business cash flow (operating cash flow of ¥3,346 million).

Growth Strategy

Through DX products, the INDUSTRIAL-X alliance, overseas expansion, and strengthening of the Eastern segment, the company aims for net sales of ¥51,100 million in FY2027 (ending March 2027)

A capital and business alliance agreement was concluded on April 25, 2025. By combining INDUSTRIAL-X's consulting capabilities with Sugimoto Shoji's customer base and DX product lineup, the company will provide an integrated offering ranging from DX consulting for production sites through equipment installation. This aims to capture demand for labor-saving and automation investment in the manufacturing industry, deepening relationships with existing customers while acquiring new ones.

The company continues to concentrate management resources on the Eastern region, where its market share is relatively low. While demand for semiconductor materials and manufacturing equipment related to AI servers remains solid, the steel, construction, and machine tool sectors continue to struggle, resulting in sluggish performance for FY2026 (ending March 2026): net sales of ¥11,392 million (down 3.0% year on year) and segment profit of ¥380 million (down 27.9% year on year). Expanding sales of DX products and developing new industry sectors will be key to recovery.

Expansion centers on transactions with China (semiconductor-related), Vietnam, and India. In FY2026 (ending March 2026), net sales reached ¥1,915 million (up 10.8% year on year), the only segment to achieve growth among all segments. Sales to South Korea and Thailand stagnated due to deteriorating economic sentiment, but an increase in the number of transactions across Asia as a whole contributed positively. The overseas share of consolidated sales stands at approximately 4%, leaving substantial room for further growth.

Based on the Fourth Medium-Term Management Plan, "Start of the next 100 years – Challenge to Change," announced in May 2024, the company is promoting a transformation into a lean, resilient corporate structure that emphasizes a customer-oriented approach to management. The full-year forecast for FY2027 (ending March 2027) calls for net sales of ¥51,100 million and operating profit of ¥2,070 million, consistent with the medium-term plan's targets. Following the decline in sales and profit in FY2026 (ending March 2026), recovery in FY2027 (ending March 2027) will determine whether the plan's goals are achieved.

Last updated: July 19, 2026