Research

KOKUSAI: Tire-tester maker with a holding-company anchor and net cash

KOKUSAI CO., LTD. (7722) · Initiated coverage 2026-10-23 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • KOKUSAI makes, sells and services dynamic balancing machines, combined tire uniformity/balance testers (UB machines), electric servo-motor test systems, shaft straightening machines, winding testers, gear-meshing testers and seismometers. Its main customers are auto-parts makers, tire makers and electronics and home-appliance makers. Balancing machines are the largest product line, and tire-related testers account for most consolidated sales and of the order backlog (see Performance & Balance).
  • The group consists of the parent, six subsidiaries and one other affiliated company. It reports five geographic segments: Japan (KOKUSAI CO.,LTD.), Japan (Toshin Kogyo, a materials-tester maker acquired in 2007), the US, Korea and China. Subsidiaries in Germany and Thailand sit in an 'Other' category, and the Thai subsidiary, which is not majority-owned, is consolidated under the effective-control standard.
  • Overseas customers account for most consolidated sales, led by China and other Asian markets, and a large part of the parent's sales are denominated in US dollars. The company says the factories at its US, Korean and Chinese subsidiaries supply the group alongside the main plant in Tama, Tokyo.
  • Fiscal years end in March and all five years shown use Japanese GAAP for 12 months, with no change in period. The company states that sales tend to be concentrated in the second and fourth quarters.

Investment case

  1. The balance sheet at March 2026 shows cash and deposits well above interest-bearing debt. The annual securities report states that long-term borrowings fell through scheduled repayments and that a committed credit line with three banks was undrawn at year-end (see Performance & Balance).
  2. The annual securities report states that the year-end order backlog covered close to a year of production. The first-quarter earnings release for the year to March 2027 shows the backlog at June 2026 higher than a year earlier, and work-in-process rose for projects scheduled to ship from the second quarter onward.
  3. The company has set a three-year medium-term plan covering the years to March 2026 through March 2028. Its stated targets are higher sales, ordinary-profit margin and return on equity. The plan's priorities include global sales of UB tire testers and building electric servo-motor test systems into a second business line, which the company describes as more energy-efficient than conventional hydraulic systems.
  4. The first-quarter earnings release forecasts a higher annual dividend for the year to March 2027 than was paid for the year to March 2026, split evenly between interim and year-end payments. The articles of incorporation allow share buybacks and interim dividends by board resolution.

Bear case

  1. Control is concentrated. The largest shareholder is an unlisted securities-holding and management company in Tokyo, classified as an 'other affiliated company', that shares three officers with KOKUSAI. The board has one outside director among nine members, falling to eight after the June 2026 general meeting (see Shareholders).
  2. Results depend on tire and auto-industry capital spending. The company states that tire-related testers make up a very high share of the backlog. It also reports intensifying price competition from overseas and local manufacturers as customers move production to Asia.
  3. The first-quarter release for the year to March 2027 shows lower sales and profit than a year earlier, driven by fewer electric servo-motor tester deliveries. The full-year forecast calls for lower sales and profit than the year to March 2026 (see Performance & Balance).
  4. Not all segments are profitable. The US segment posted a loss and an impairment charge in the year to March 2026, and the Korean and Toshin Kogyo segments posted losses in the first quarter. The allowance for doubtful accounts on long-overdue receivables rose in the year to March 2026 and again in the first quarter.

Catalysts

  • Results for the six months to September 2026, measured against the company's first-half forecast, given its statement that sales concentrate in the second and fourth quarters. The interim dividend record date is September 30, 2026.
  • Full-year results for the year to March 2027, against the forecast published on May 15, 2026, which was left unchanged at the first quarter.
  • Progress on the medium-term plan ending in the year to March 2028, including electric servo-motor tester sales and the business tie-up with EMIC Corporation on electrodynamic vibration testers.

Key risks

  • Economic, tariff and political conditions abroad. The company cites possible US tariff changes under the new administration, US–Iran conflict affecting raw materials and oil supply chains, and US–China trade friction.
  • Exchange-rate movements. US dollar sales are a large share of the parent's revenue, and the company states that forward contracts cannot remove the effect entirely.
  • Product liability, intellectual-property claims and natural disasters affecting production sites in Japan and abroad. The company states that its product liability insurance may not fully cover damages.
  • Management-personnel risk. The company states that results could be affected if key executives become unable to perform their duties or successors cannot be developed. The board is small and largely internal.

Trading liquidity

Median daily trading value US$0.22mn
Average daily volume 59,972 shares

2025-10-03 to 2026-10-22 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The first-quarter consolidated statements were not reviewed by an auditor. Quarterly comparisons are affected by the timing of large machine acceptances, which the company says cluster in the second and fourth quarters.
  • From the year to March 2026, geographic sales by customer location show the US separately from other Americas, with the prior year reclassified. Segment figures are based on the location of the selling group company, so they differ from sales by customer location.
  • Qualitative statements are taken from the annual securities report for the year to March 2026 and the first-quarter earnings release for the year to March 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

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Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Precision Instruments

KOKUSAI CO.,LTD.

Kokusai Keisokuki is a comprehensive manufacturer of durability, fatigue, and vibration testing equipment, offering balancing machines, electric servo motor-driven testing systems, material testing machines, shaft straightening machines, and seismic instruments. The company serves primarily the automotive industry—covering EV motors, engine components, drivetrain parts, and tires—as well as home appliance, OA equipment, and industrial machinery sectors. Its key competitive strengths include proprietary world-first electric servo motor control technology (patented), high-speed tire uniformity/balance composite testing machines, and a broad product lineup exceeding 30 types of servo-driven testing systems.

Market Cap
¥9.89B
US$63.0M
EV
¥3.77B
US$24.0M
Stock¥734▼-0.81%
US$1 = ¥157.05 (2026-10-22)
LTM EV/EBITDA
1.9
x
LTM EV/EBIT
1.9
x
LTM PER
7.5
x
LTM PBR
0.8
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-11.5%pt
10012
Oct 23, 25 – Oct 22, 26StockTOPIX
1Nov 26, 25Share buyback announcement boost
2Aug 10, 26Q1 FY2027/03 earnings announced
MC → EV Bridge
9.89BUS$63.0MMarket Cap2.37BUS$15.1M+ Debt8.07BUS$51.4M− Cash0.88BUS$5.63M− Inv. Sec.0.48BUS$3.03M+ NCI3.77BUS$24.0MEV
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Performance & Balance
Revenue 5Y (¥B)
11.1US$70.9M'22/310.0US$63.9M'23/310.2US$65.2M'24/313.2US$84.1M'25/314.9US$95.2M'26/3
EBITDA 5Y (¥B)
0.59US$3.73M'22/30.13US$0.81M'23/3-0.46-US$2.93M'24/31.37US$8.72M'25/32.26US$14.4M'26/3
Net Income 5Y (¥B)
0.48US$3.02M'22/3-0.07-US$0.42M'23/3-0.26-US$1.64M'24/30.94US$5.99M'25/31.50US$9.53M'26/3
Capital Structure
84%
EquityD/E 0.19xDebt
Liquidity vs Debt 5Y (¥B)▲ Net Cash
CashInv. Sec.Debt
5.83US$37.1M2.48US$15.8M'22/37.83US$49.8M4.79US$30.5M'23/38.55US$54.4M4.02US$25.6M'24/38.61US$54.8M3.41US$21.7M'25/39.30US$59.2M2.57US$16.4M'26/3
Shareholders
Top 10 hold 53.3%
1
Matsumoto Shigeru Kogyo Co., Ltd.
38.67%
2
Hiroshi MATSUMOTO
2.23%
3
Shinichi MATSUMOTO
2.23%
4
KOKUSAI CO.,LTD. Employee Stock Ownership Association
1.95%
5
Daiwa Securities Co. Ltd.
1.81%
6
Nomura Trust and Banking Co., Ltd. (Trust Account 2052314)
1.42%
7
STATE STREET BANK AND TRUST COMPANY 505103 (Standing Proxy: Mizuho Bank, Ltd.)
1.41%
8
BNYM RE BNYMLB RE GPP CLIENT MONEY AND ASSETS AC (Standing Proxy: MUFG Bank, Ltd.)
1.33%
9
Hiroshi MIYASHITA
1.19%
10
Yoshitoshi NISHIO
1.10%
Management
11 officers
Shinichi MATSUMOTO
Representative Director, President
Apr 1981 Joined Kotobuki-ya Co., Ltd. Oct 1997 Joined the Company; Manager, Kyushu Sales Office Jun 1999 Deputy General Manager, Production Control Department Jun 2009 General Manager, Production Control Department Jun 2009 Director; General Manager, Production Control Department Jun 2017 Director; General Manager, Administration Division Jun 2021 Representative Director, President (current) Apr 2026 Chairman, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. (current)
1959-01-23
Hiroshi MATSUMOTO
Director, General Manager of Administration Division
Nov 1979 Joined the Company Jun 1989 General Manager, General Affairs Department Jun 1998 Director; General Manager, General Affairs Department Jun 2003 Resigned as Director Jun 2004 Director; General Manager, General Affairs Department Mar 2010 Representative Director, Toshin Kogyo Co., Ltd. (current) Jun 2017 Representative Director, President of the Company Jun 2021 Director; General Manager, Administration Division (current)
1954-12-24
Kazuyoshi TASHIRO
Director, General Manager of Technology Development Department
Apr 1973 Joined Jeco Co., Ltd. Feb 1977 Joined the Company Apr 1994 General Manager, First Manufacturing Technology Department Apr 2004 Head of Technology Division, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. Jun 2005 Director; General Manager, First Manufacturing Technology Department Apr 2007 Director; General Manager, Technology Development Department May 2017 Director; General Manager, Technology Division Jul 2019 Director; General Manager, Technology Division; Director and Vice President, Toshin Kogyo Co., Ltd. Jun 2021 Director; General Manager, Technology Development Department; Director and Vice President, Toshin Kogyo Co., Ltd. (current)
1954-09-09
Kazuhiro MURAUCHI
Director, General Manager of Technology Division
Apr 1982 Joined the Company Apr 2000 Deputy General Manager, Technology Development Department Apr 2006 General Manager, Third Manufacturing Technology Department Jun 2009 Director; General Manager, Third Manufacturing Technology Department Jul 2009 Director; General Manager, Second Technology Department May 2017 Director; Deputy General Manager, Technology Division Jun 2021 Director; General Manager, Technology Division (current)
1959-11-24
Kazuo OGURA
Director
Apr 1975 Joined the Company Apr 1993 Deputy General Manager, Overseas Department Apr 2002 General Manager, Third Manufacturing Technology Department Apr 2006 General Manager, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. Apr 2010 Deputy General Manager, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. Jun 2011 Director of the Company (current) Apr 2018 General Manager, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. (current)
1954-09-13
Junichi ISHIKURA
Director, General Manager of Domestic Sales Division
Apr 1978 Joined the Company Jun 1997 General Manager, Seismic Vibration Measurement Business Division Apr 1999 General Manager, Production Control Department Jun 2000 Director; General Manager, Production Control Department Apr 2009 Director; Manager, Nagoya Sales Office May 2010 Director; General Manager, Second Sales Department Jun 2011 Manager, Nagoya Sales Office Jun 2016 Director; Manager, Nagoya Sales Office Jul 2017 Director; General Manager, Sales Division and Manager, Nagoya Sales Office Oct 2019 Director; General Manager, Sales Division Jun 2021 Director; General Manager, Domestic Sales Division (current)
1953-11-15
Kenji WATARAI
Full-time Corporate Auditor
Apr 1973 Joined Nakajima Tax and Accounting Office May 1997 Joined the Company Jun 2010 Deputy General Manager, General Affairs Department Mar 2014 Corporate Auditor, Toshin Kogyo Co., Ltd. (current) Jun 2014 Full-time Corporate Auditor of the Company (current)
1950-07-20
Shigeru MATSUMOTO
Representative Director, Chairman
Jun 1969 Founded the Company; assumed office as Director Jul 1979 Representative Director, President of the Company May 1985 Representative Director, Matsumoto Shigeru Kogyo Co., Ltd. (current) Nov 1987 Representative Director, KOKUSAI INC. (current) Mar 1998 Chairman, Shanghai Songyun International Measuring Instruments Co., Ltd. Apr 1998 General Manager, Overseas Business Division of the Company Dec 1998 Director, Xiaogan Matsubayashi International Measuring Instruments Co., Ltd. Jun 1999 Representative Director, KOREA KOKUSAI CO., LTD. (current) Oct 2002 Chairman, Gaoji International Measuring Instruments (Shanghai) Co., Ltd. Feb 2006 Representative Director, Thai Kokusai CO., LTD. (current) Dec 2009 Chairman, Matsubayashi International Testing Machines (Wuhan) Co., Ltd. Jun 2017 Representative Director, Chairman of the Company (current)
1942-04-22
Shinichi HONDA
Director
Apr 1993 Joined Fujisoku Co., Ltd. Apr 1996 Joined Sanshin Co., Ltd. Apr 2012 Senior Managing Director, Sanshin Co., Ltd. Dec 2014 Representative Director, Sanshin Co., Ltd. (current) Jun 2025 Outside Director of the Company (current)
1970-11-03
Kazuhiko SAITO
Corporate Auditor
Apr 1986 Joined the Legal Training and Research Institute of the Supreme Court of Japan Apr 1988 Registered as attorney (Tokyo Bar Association); joined Takagi & Makinouchi Law Office Apr 1992 Opened Okada & Saito Law Office Jun 2006 Outside Corporate Auditor of the Company (current) Apr 2009 Opened Saito Sogo Law Office
1956-08-23
Noriyuki SHIRAISHI
Corporate Auditor
Apr 1993 Joined Kobayashi Tax and Accounting Office Feb 2000 Joined Certified Public Accountant Mitsukuni Ito Office Oct 2003 Transferred to Aoi Tax Accountant Corporation Jan 2006 Opened Noriyuki Shiraishi Tax Accountant Office Nov 2016 Established Accurate Partners Tax Accountant Corporation; Representative Partner (current) Jun 2023 Outside Corporate Auditor of the Company (current)
1970-06-27
Large Shareholding Reports
Matsumoto Shigeoki Kosan Co., Ltd.
2026-01-15
36.69%→36.69%
Annual report (as of 2026-03-31): 38.67%
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-08-07
Q1 Earnings Flash
FY ending Mar 2027
EDINET
2026-06-25
Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2026-02-09
Q3 Earnings Flash
FY ending Mar 2026
EDINET
2026-01-15
Large Shareholding Report
EDINET
2025-11-12
Semi-Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2025-08-07
Q1 Earnings Flash
FY ending Mar 2026
EDINET
2025-06-30
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-07
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-11
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-07
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-24
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-02-13
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-11-09
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-09
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-26
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-14
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-09
Quarterly Securities Report
EDINET
2022-08-09
Quarterly Securities Report
EDINET
2022-06-27
Annual Securities Report
EDINET
2022-02-10
Quarterly Securities Report
EDINET
2021-11-09
Quarterly Securities Report
EDINET
2021-08-10
Quarterly Securities Report
EDINET
2021-06-28
Annual Securities Report
EDINET
2021-02-12
Quarterly Securities Report
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