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Investor Relations

Dear Shareholders and Investors

Dear Shareholders and Investors:

  • Greeting

I am Tsutomu Murakawa. I am honored and grateful to have the opportunity to serve as President for KOKEN LTD. Firstly,I would like to express my heartfelt gratitude for your continued support and patronage to the Company.
Since its foundation, KOKEN LTD. has grown in the safety business domain with a central focus on the development of respirators for industrial use. Having launched the cleanliness business domain with a central focus on the recently developed KOACH, an open clean zone creator, we are now ready to step up to a new growth stage.
Towards the new growth stage, we have set forth the management principles that are supposed to be contained in the Company’s DNA: “Nurture people,”“Nurture technology” and “Nurture new markets in cleanliness, health and safety business domains.”
For the next generation we would like to establish the health business domain as the third main pillar of operations. Then, by making each of three main pillars of business stand on its own two feet, everybody from the management down to each employee in the Company is now striving as one to achieve a stable and strongly growing company in the future.
We look forward to your continued understanding and support in the future.

  • Announcement of Our Management Stance-Our Goal: Long-Term Sustainable Growth

Based on our Management Principles: (1) Nurture people, (2) Nurture technology and (3) Nurture new markets in cleanliness, health and safety business domains, through which we will contribute to society, we, at the KOKEN Group, aim to achieve long-term sustainable growth.
The current business environment surrounding our Group remains uncertain at home and abroad due to its fast and drastic change.
In this circumstance, while maintaining the unchanging long-term goal to nurture new markets in cleanliness, health, and safety business domains based on our own original technological innovations, we consider that (1) establishing specific targets and an action plan to achieve them every year and implementing them steadily and (2) achieving each year’s targets by modifying the action plan quickly and flexibly to respond to ever-changing business environment are the best and surest ways to achieve long-term sustainable growth of our Group.
As mentioned above, to establish the “cleanliness” and the “health” business domains as the second and third pillars of operations, respectively, following the “safety” business, we are now striving to develop our own original products such as an open clean zone creator, an automatic endoscope washer/disinfector, an antivirus mask and a copper-based antimicrobial agent, which have never before existed, and cultivate and expand new markets for them.
With such management stance, rather than aiming for a rapid profit growth and capital efficiency, we will right now focus on nurturing new businesses in the domains of “cleanliness” and “health” businesses as a high priority, which may eventually result in an improved operating margin as well as increased net sales and operating income.
In September 2018, the Advanced Technology Center was completed with the main objectives of increasing management efficiency through integration of research and development divisions located separately in each business office, promoting of collaboration and joint research activities with external institutes and corporations, strengthening research and development, and promoting human resource development. I am sure that this new facility will help further increase the customer’s trust and expectation for our Group’s technologies and products and enable us as an R&D hub to further expand the number and scale of cooperation and joint research with various external organizations and corporations that we have been involved in.
The Advanced Technology Center, which was completed in 2018, is a facility where development engineers gather to exchange wisdom and greatly contribute to improving the ability to “nurture original technology.” In the future, we will intensify our efforts to increase its presence as a base for promoting collaboration and joint research with external institutions and corporations, aiming for sustainable growth and enhancement of corporate value.
We hope that our shareholders will continue to look forward to the growth of the Group in the long run.

  • Outlook for the Year Ending December 31, 2023
    -Forecast as of the announcement date (August 7, 2023) of the financial results for the second quarter of the fiscal year ending December 31, 2023 –

The business environment surrounding the Group remains uncertain due to soaring prices of commodities caused by the prolonged situation in Ukraine, high resource prices due to the protracted situation in Ukraine and the ongoing depreciation of the yen, etc., while behavioral restrictions have been eased and socioeconomic activities have normalized due to the shift of the new coronavirus to category 5.
Against this backdrop, demand trends for industrial masks are showing a year-on-year increase due to the economic recovery.
Sales of infection-control masks to medical institutions, which had been left on back-order after the eighth wave of the new coronavirus subsided, continued through May, and have remained at nearly normal levels since then.
Although the number of deliveries of the "KOACH" open clean air system was on a par with the previous year, delivery dates for some large projects were postponed due to the circumstances of some users. In addition to steady delivery of properties for which orders have already been received, we will strengthen our proposal-based sales activities to solve problems through remote sales and other means.
As for the endoscope cleaning and disinfection washer "Kagami-Naishi IIG," we are gradually increasing the number of units sold to medical institutions.
In response to soaring raw material prices and logistics costs, we have revised the prices of some products effective June 1.
As for the outlook for business performance, as announced in the "Notice Concerning Revision of First-Half Earnings Forecast" (June 30, 2023), we made revisions in the first half of the fiscal year, but because it is very difficult to discern the increase or decrease in demand for masks due to the spread of the corona virus in the future, we have not changed our full-year consolidated earnings forecast announced on February 10, 2023, for the fiscal year ending March 31, 2011. However, since it is very difficult to assess the increase or decrease in demand for masks due to the spread of the corona virus in the future, the Company has not changed its full-year consolidated forecasts announced on February 10, 2023: net sales of 10,700 million yen (up 0.9% year-on-year), operating income of 780 million yen (down 34.2% year-on-year), ordinary income of 740 million yen (down 36.2% year-on-year), and net income attributable to shareholders of the parent company of 520 million yen (down 37.6% year-on-year).
If future trends necessitate a revision of the earnings forecast, we will disclose it promptly.

(NOTE) (NOTE) The forecasts and other forward-looking statements presented on this website are based on information currently available to us (as of August 7, 2023, the disclosure date of the "Summary of Consolidated Financial Results for the second quarter of the fiscal year ending December 31, 2023 [Japanese standards]"), and certain assumptions deemed reasonable. Actual results may differ from these forecasts due to various factors.
If you do plan to invest, please do not make an investment decision by solely relying on the information published in this website and use your own judgement before investing.
Although KOKEN has implemented all possible means to ensure the accuracy of the content of this website, KOKEN is not liable or responsible in any way for any damages, losses, or costs that may be caused as a result of using this site, including but not limited to damages caused by the use of information or incorrect information posted in this website, and any problems resulting from the downloading of data, for whatever the reason.

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