Tokyo Koki

Basic Information

Stock Code
7719
Industry
Precision Instruments
Category Detail
Commercial & Industrial Machinery
Prefecture
Kanagawa Prefecture
Establishment Year
March 1923
Listing Year
October 1961
Official Website
https://www.tksnet.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Rigaku Holdings, J Escom, Atra G, Anritsu Corporation, Yokogawa Electric Corporation, Azbil Corporation, Horiba, Ltd., Hioki E.E. Corporation, JEOL Ltd., Shimadzu Corporation, Topcon Corporation, Riken Keiki Co., Ltd., Rapine

Overview

Tokyo Koki is a specialized manufacturer of material testing machines and power testing machines founded in 1923. It possesses high technological capabilities in the domestic precision instruments market and strengths in the industrial measurement field.

Current Situation

Tokyo Koki recorded consolidated net sales of approximately ¥3.05 billion and consolidated ordinary income of approximately ¥110 million for the fiscal year ended February 2023. The core material testing machine business maintains stable supply to manufacturing industries both domestically and internationally, while the trading business is also expanding. In recent years, it has strengthened its engineering and overseas businesses, aiming for multifaceted growth. Financially, although consolidated net profit was a loss of approximately ¥700 million, it holds stable net assets of about ¥1.4 billion. In 2023, it received delisting from special quotation status through improvements in internal management systems, focusing on governance enhancements. In technology development, based on high-precision measurement technology, it is advancing new product development and maintaining trust from manufacturing industries at home and abroad. Moving forward, it positions expansion of sales in overseas markets and technological innovation in the testing machine field as pillars of growth. It is also promoting corporate constitution improvements such as sustainable business operations and strengthened internal management, aiming to expand its business foundation from 2025 onward.

Trivia

Interesting Facts

  • Founded in 1923, a veteran manufacturer in Japan's precision testing machine industry
  • Founder was an engineer from Mitsubishi Shipbuilding, inheriting a spirit of craftsmanship
  • Listed on the Tokyo Stock Exchange in 1961, with a long history in the industry
  • Holds a certain market share in Japan's material testing machine market
  • Temporarily changed name in 2008, reverting to current name in 2013
  • Received special quotation designation in 2023 due to internal management issues but has since been delisted
  • Actively expanding overseas business, particularly sales network in Asia
  • Extensive business network with related companies in the measurement and analysis instruments industry
  • Head office in Sagamihara City, Kanagawa Prefecture, with headquarters relocated to Shibuya Ward
  • Strength in developing custom systems combining various testing machines

Hidden Connections

  • Founder from Mitsubishi Shipbuilding, deeply connected to Japan's shipbuilding and precision machinery history
  • Coexists technological competition and collaboration with major competitors like Shimadzu Corporation and Yokogawa Electric in the precision instruments industry
  • Reputation fluctuated during name change and business reconstruction period but successfully recovered trust
  • Long-term contributor to the foundation of Japan's material testing and measurement markets
  • Known as a case study of improvement after attracting attention from the Tokyo Stock Exchange for internal management issues
  • Actively provides technical support to regional small and medium-sized manufacturing companies within the industrial machinery industry
  • Highly evaluated by clients for advanced customization services leveraging long history
  • Built a comprehensive business structure from testing machine sales to services through multiple affiliates

Future Outlook

Growth Drivers

  • Growing quality control needs in domestic and international manufacturing
  • Advances in new material development in materials science
  • Increasing importance of environmental and durability testing
  • Utilization of IoT and AI technologies in testing machines
  • Rising demand for industrial machinery in overseas Asian markets
  • Revenue expansion through engineering service growth
  • Ongoing trust recovery via continuous internal management strengthening
  • Increasing demand for customized testing systems
  • Expansion of sustainability-compliant products
  • Strengthening long-term partnerships with customers

Strategic Goals

  • Expand overseas sales ratio to over 30%
  • Expand environmentally compatible testing machine products
  • Increase engineering service sales to 20% of total
  • Fully strengthen internal governance systems
  • Launch IoT and AI integrated products
  • Ensure medium- to long-term management stability
  • Deepen quality assurance support for domestic manufacturing
  • Create synergies through enhanced collaboration with affiliates
  • Continue active contributions to local communities
  • Promote innovation in testing markets through new technologies

Business Segments

Testing Machine Sales to Manufacturing Industry

Overview
Provides high-precision material and power testing machines to the manufacturing industry to support quality control.
Competitiveness
High-precision and versatile testing technology
Customers
  • Automotive manufacturers
  • Aircraft manufacturers
  • Building materials manufacturers
  • Home appliance manufacturers
  • Machinery manufacturers
  • Steel industry
  • Plastics manufacturers
  • Electrical equipment manufacturers
  • Equipment maintenance companies
  • Research and development institutions
Products
  • Universal material testing machines
  • Fatigue testing machines
  • Power testing devices
  • Non-destructive testing equipment
  • Environmental testing equipment
  • Measurement software

Technical Services and Maintenance

Overview
Maintains and improves customer trust through long-term maintenance and calibration services.
Competitiveness
Prompt response by specialized engineers
Customers
  • Manufacturing companies
  • Universities and research institutions
  • Testing and inspection organizations
  • Public research institutes
Products
  • Testing machine maintenance services
  • Device calibration
  • Technical consulting

Overseas Business and Export Sales

Overview
Expanding sales network by offering testing machines to overseas markets.
Competitiveness
Product customization tailored to regional characteristics
Customers
  • Asian manufacturing industry
  • European and American research institutions
  • Overseas agents
  • Import distributors
Products
  • Testing machines
  • Related consumables
  • Custom testing devices

Engineering Business

Overview
Provides design and construction of testing equipment tailored to customer needs.
Competitiveness
Diverse testing environment design capabilities
Customers
  • Manufacturing plants
  • Large equipment manufacturers
  • Environmental testing facilities
  • Public institutions
Products
  • Testing system design
  • Equipment construction and modification
  • Testing operation support

Competitive Advantage

Strengths

  • Manufacturing of highly accurate and reliable testing machines
  • Strong customer base in the domestic manufacturing industry
  • Diverse lineup of testing equipment categories
  • Accumulated technology and track record over many years
  • High customer support capabilities
  • Proven improvements in internal management systems
  • Gradual expansion into overseas markets
  • Broad range of related business operations
  • Provision of dedicated engineering services
  • Robust research and development structure

Competitive Advantages

  • High expertise and diverse product range in material testing
  • Trusted relationships with domestic and international customers built through long-term transactions
  • Flexibility in product customization
  • One-stop service enabled by engineering know-how
  • Established brand recognition in the precision instruments market
  • Trust recovery through strengthened internal management systems
  • Ensured management stability through diversified business operations
  • Provision of high-precision data analysis software
  • Differentiation through support for environmental testing machine adoption
  • Focus on training and development of engineers

Threats

  • Intensifying price competition from major competitors
  • Decline in demand due to sluggish performance in domestic manufacturing
  • Risk of lagging behind rapid technological innovations
  • Fluctuations in export prices due to exchange rate variations
  • Cost increases from stricter regulations
  • Rise of low-cost testing machine manufacturers in emerging markets
  • Production delays due to semiconductor shortages and other component procurement issues
  • Rising raw material costs from resource price surges
  • Impact on overseas business from geopolitical risks
  • Risk of recurrence of internal management issues
  • Market share erosion by new entrants

Innovations

2023: Development of Next-Generation Material Fatigue Testing Machine

Overview
Introduced a new fatigue testing machine that achieves twice the measurement speed of conventional models with improved accuracy.
Impact
Contributes to improved testing efficiency in manufacturing

2024: Launch of IoT-Compatible Measurement Devices

Overview
New product rollout of IoT-enabled measurement instruments supporting remote monitoring.
Impact
Contributes to improved maintenance efficiency for customers

2022: Commercialization of Environmentally Friendly Testing Machines

Overview
Launched a series of environmentally compatible testing machines incorporating energy-saving designs.
Impact
Successfully strengthened market differentiation

2021: Development of AI-Powered Testing Data Analysis Platform

Overview
Developed a new system enabling automatic analysis and anomaly detection of testing data using AI.
Impact
Contributes to improved quality control for customers

Sustainability

  • Promotion of energy-saving design in testing machine development
  • Manufacturing process improvements aimed at waste reduction
  • Employee environmental awareness training
  • Advancement of green procurement
  • Active use of recycled materials