tiprankstipranks
Advertisement
Advertisement

Tsubakimoto Chain Lifts Sales and Profit, Expands Group with Daido Kogyo

Story Highlights
  • Tsubakimoto Chain grew sales and net profit, strengthened its balance sheet, and kept its annual dividend at ¥80 per share.
  • The company’s forecast reflects strong revenue growth and new subsidiaries, while profit guidance normalizes after one-off gains.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Tsubakimoto Chain Lifts Sales and Profit, Expands Group with Daido Kogyo

Meet Samuel – Your Personal Investing Prophet

Tsubakimoto Chain Co. ( (JP:6371) ) has shared an update.

Tsubakimoto Chain reported a 6.0% rise in consolidated net sales to ¥295.9 billion for the year ended March 31, 2026, while operating and ordinary profit slipped, but profit attributable to owners of the parent jumped 34.3% to ¥29.7 billion, lifting ROE to 10.7%. The group strengthened its balance sheet with higher total assets and cash, maintained an ¥80 annual dividend per share after last year’s stock split, and projected substantial top-line growth to ¥350 billion in fiscal 2027, partly reflecting the consolidation of 16 newly added subsidiaries including Daido Kogyo, even as it guides for a profit decline due to one-off gains in the latest year.

Dividend policy remains shareholder-friendly with a forecast unchanged at ¥80 per share and a payout ratio in the mid-30% range based on adjusted profit, signaling a commitment to stable returns despite margin pressure. The inclusion of Daido Kogyo and related entities marks a notable expansion of the consolidation scope, which is expected to bolster sales scale and reinforce Tsubakimoto’s competitive position in industrial chains and power transmission, while investors will watch how efficiently the enlarged group converts this growth into sustainable earnings.

More about Tsubakimoto Chain Co.

Tsubakimoto Chain Co., listed on the Tokyo Stock Exchange, operates in the industrial machinery and components sector. The company is best known for its chains and power transmission products, serving a broad range of manufacturing and automation markets in Japan and overseas.

Average Trading Volume: 195,244

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen254.8B

See more data about 6371 stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1