KOIKE SANSO KOGYO CO.,LTD.JP:6137Stock Price

Market cap
¥45.7B
P/E ratio
14.9x
Manufactures and sells industrial cutting machines, welding equipment, high-pressure gases, and welding materials to customers worldwide through 41 group companies.

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Business Overview

Koike Oxygen Industries is a corporate group engaged in the manufacturing, procurement, and sales of machinery and equipment, high-pressure gases, and welding materials. The group consists of Koike Oxygen Industries as its core company, along with 18 subsidiaries and 23 affiliated companies. Operations are divided into three business segments: machinery and equipment, high-pressure gases, and welding materials.

In the machinery and equipment segment, the company handles medium to large-scale cutting machines, gas automatic cutting machines, gas cutting tools, and welding machinery. Koike Oxygen Industries manufactures and sells these products, supplying them domestically and internationally through subsidiaries and affiliated companies. In particular, subsidiaries such as Koike Tech and Koike Aronson handle manufacturing operations.

In the high-pressure gas segment, the company handles industrial and medical gases including oxygen, nitrogen, argon, dissolved acetylene, and propane gas. Koike Oxygen Industries manufactures, procures, and sells these gases, distributing them through an extensive network of affiliated companies. Medical gases and medical devices are also included in this segment.

In the welding materials segment, the company handles welding rods, electric welding machines, and safety protective equipment. Koike Oxygen Industries sells these products, with some procured through affiliated companies. Sales are conducted domestically and internationally through subsidiaries and affiliated companies.

Management Policy

Koike Oxygen Industries is a comprehensive manufacturer and distributor of gases, welding, and cutting equipment. The company's management philosophy centers on earning customer satisfaction and trust in the global market. The company is committed to remaining a value-creating enterprise for shareholders, customers, business partners, and employees by fostering innovation in new technologies and promoting harmony among people, technology, and the environment.

Under its medium-term management plan "NEXT STAGE 2026," the company has identified three key priorities: realizing customer satisfaction in the global market and strengthening its revenue base, reinforcing its management foundation for sustainable growth, and implementing management practices that consider capital costs and stock price. Through these initiatives, the company aims to create value alongside stakeholders including business partners, employees, society, and shareholders, while pursuing sustainable growth.

As specific growth strategies, the company is improving customer value through the provision of attractive products and enhanced customer services, while exploring new revenue-generating businesses. Additionally, the company is strengthening its management foundation through enhanced human capital management, digital transformation initiatives, and sustainable business practices.

For the fiscal year ending March 2027, the company targets consolidated net sales of 57 billion yen, ordinary profit of 6.3 billion yen, and an ordinary profit margin of 11%. The company also targets ROE and ROIC of 10% each, with a dividend payout ratio of 30% or higher. The company prioritizes these metrics in its efforts to enhance corporate value.

Regarding the operating environment, the company is monitoring U.S. policy, China's economic slowdown, and geopolitical risks, while advancing new technology and product development and strengthening collaboration among group companies. Specifically, the company is focusing on increased sales of DBC fiber laser cutting machines in the machinery equipment division, acquiring new customers and implementing price revisions in the high-pressure gas division, and expanding new product sales in the welding materials division. The company is also working on new product development in anticipation of a carbon-neutral era and expanding its helium recycling business.