# Shinhokoku Material Corp.: business model and financials

> Latest period: FY ending Dec 2025, non-consolidated, J-GAAP
> Unit: JPY millions
> Sources: 訂正有価証券報告書－第93期(2025/01/01－2025/12/31) (S100XWUB)
> Page: https://vizora.meequs.com/en/company/shinhokoku-material
> Retrieved: 2026-09-30T21:09:07.375Z

## Company

Shinhokoku Material, founded in 1949, is a company in Steel listed on TSE Standard. It has 99 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Shinhokoku Material Corp. |
| Ticker | 5542 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5542.T) |
| Listing | TSE Standard |
| Head office | 埼玉県川越市新宿町5丁目13番地1 |
| Representative (per filing) | 代表取締役社長 成瀬 正 |
| Founded | Oct 1949 |
| Share capital | ¥175.5M |
| Employees (consolidated) | 99 |
| Average salary (parent only) | ¥7.6M |
| Fiscal year end | December |
| Website | www.shst.co.jp (https://www.shst.co.jp/) |
| Corporate number | 1030001054909 |
| EDINET | E01257 |
| Industries (Vizora) | Steel, Real Estate Development & Leasing |

> Profile source: annual securities report (S100XWUB, filed 2026-04-03). As of filing

## Five-axis industry profile

Primary industry: Steel (2025-12-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 65.2 | 33 |
| Profitability | 90 | 35 |
| Cash conversion | 14.5 | 31 |
| Efficiency | 41.4 | 35 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 97% of Shinhokoku Material's sales come from Special alloy business, with Real estate rent business making up much of the rest.
- Out of every ¥100 of sales, about ¥9 is left as operating profit.
- Revenue changed -10.8% from the prior year, operating profit -27.7%.

## Company structure

- Segment revenue mix: Special alloy business 97.3%、Real estate rent business 2.7%
- Revenue → net income: ¥5539581000 → ¥401136000
- Net income → operating cash flow: ¥401136000 → ¥483949000（difference ¥82813000）
- Main uses of operating cash flow: CapEx ¥355836000 / dividends ¥165694000 / buybacks ¥68241000
- Change in cash: ¥-1611865000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥5.54B |  |
| Operating income | ¥466.3M | Margin 8.4% |
| Net income | ¥401.1M | Margin 7.2% |
| Free cash flow | ¥128.1M |  |
| Largest business | Special alloy business | of segment revenue 97.3% |
| Employees (consolidated) | 99 |  |
| EPS | ¥60.17 |  |
| Book value per share | ¥872.27 |  |
| Equity ratio | 75.2% |  |
| Shares outstanding | 7,020,000 |  |
| Treasury shares | 363,200 |  |
| Shareholders | 2,357 |  |
| Average salary (parent only) | ¥7.6M | Filing company only |
| Cash ratio | 23.5% | Cash ÷ revenue 32.8% |
| Vs. industry median margin | +4.9 pp | Steel |
| ROE | 7.1% | Derived from disclosed figures |
| ROA | 5.2% | Derived from disclosed figures |

## Notable figures

- FY2025, one segment accounts for 75% of positive segment profit
- FY2025, segment profit share differs by 23 points

## What changed in 5 years

| Metric | FY ending Dec 2020 | FY ending Dec 2025 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥3986863000 | ¥5539581000 | +38.9% |
| Operating income | ¥223286000 | ¥466300000 | +108.8% |
| Operating margin | 5.6% | 8.4% | +2.8 pp |
| Employees | 90 people | 99 people | +10.0% |
| Cash and equivalents | ¥3051214000 | ¥1814462000 | -40.5% |

### Change in segment revenue mix

Span: FY ending Dec 2020 → FY ending Dec 2025. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 特殊合金事業 → 特殊合金事業 | 96.1% |
| 不動産賃貸事業 → 不動産賃貸事業 | 2.7% |
| 不動産賃貸事業 → 事業再編・廃止 | 1.2% |
| 新設・再編 → 特殊合金事業 | 1.2% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Dec 2025, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 5,540 | 100.0% | S100XWUB |
| Cost of revenue | 4,165 | 75.2% | S100XWUB |
| Gross profit | 1,374 | 24.8% | S100XWUB |
| SG&A | 908 | 16.4% | S100XWUB |
| Operating income | 466 | 8.4% | S100XWUB |
| Ordinary income | 540 | 9.7% | S100XWUB |
| Pretax income | 522 | 9.4% | S100XWUB |
| Income tax | 120 | 2.2% | S100XWUB |
| Net income | 401 | 7.2% | S100XWUB |

## Per ¥100 of revenue（FY ending Dec 2025）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 75 |
| SG&A | 16 |
| Operating income | 9 |
| (Ref.) Net income | 7 |

### Margin funnel

Gross margin 24.8% → Operating margin 8.4% → Net margin 7.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -10.8%; Core profit growth: -27.7%
Operating leverage (core profit growth ÷ revenue growth): 2.56×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Dec 2024 → FY ending Dec 2025、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 6,209 | 5,540 | -670 | -10.8% |
| Gross profit | 1,461 | 1,374 | -86 | -5.9% |
| Operating income | 645 | 466 | -178 | -27.7% |
| Operating cash flow | 1,413 | 484 | -929 | -65.8% |
| Free cash flow | 1,292 | 128 | -1,164 | -90.1% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Dec 2019 | 5,517 | 603 | 10.9% | 428 | 2,038 | 1,892 | S100KZIK |
| FY ending Dec 2020 | 3,987 | 223 | 5.6% | 192 | 675 | 614 | S100NPIW |
| FY ending Dec 2021 | 4,661 | 382 | 8.2% | 323 | -243 | -341 | S100QG1N |
| FY ending Dec 2022 | 6,361 | 638 | 10.0% | 492 | 170 | -32 | S100T41B |
| FY ending Dec 2023 | 6,484 | 628 | 9.7% | 476 | 497 | 302 | S100VGU1 |
| FY ending Dec 2024 | 6,209 | 645 | 10.4% | 576 | 1,413 | 1,292 | S100XWUB |
| FY ending Dec 2025 | 5,540 | 466 | 8.4% | 401 | 484 | 128 | S100XWUB |

## People and productivity（FY ending Dec 2025, non-consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥56M |
| Operating income per employee (consolidated) | ¥4.7M |
| Net income per employee (consolidated) | ¥4.1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 88 | 90 | 89 | 98 | 99 |
| Average salary (parent company) | ¥7.6M | ¥8.1M | ¥7M | ¥7.2M | ¥7.6M |
| Average age (parent company) | 42.3 years | 43.0 years | 44.4 years | 44.1 years | 44.4 years |
| Average tenure (parent company) | 15.2 years | 15.7 years | 16.6 years | 16.3 years | 17.0 years |

Year over year: Employees (consolidated) +1.0% · Revenue (consolidated) -10.8%

## Segments（FY ending Dec 2025, non-consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Special alloy business | 5,387 | 97.3% | 348 | 6.5% |
| Real estate rent business | 152 | 2.7% | 119 | 77.9% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Special alloy business | 97.3% | 74.6% | -22.7 | 6.5% |
| Real estate rent business | 2.7% | 25.4% | 22.7 | 77.9% |

Segment → industry: Special alloy business → Steel / Real estate rent business → Real Estate Development & Leasing

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Dec 2025, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 484 | 8.7% | S100XWUB |
| Capital expenditure | 356 | 6.4% | S100XWUB |
| Free cash flow | 128 | 2.3% | 算出 |
| Investing cash flow | -1,856 | -33.5% | S100XWUB |
| Financing cash flow | -240 | -4.3% | S100XWUB |
| Dividends paid | 166 | 3.0% | S100XWUB |
| Share buyback | 68 | 1.2% | S100XWUB |
| Change in cash | -1,612 | -29.1% | S100XWUB |
| Cash and equivalents | 1,814 | 32.8% | S100XWUB |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 2,550 | 2,367 | 2,562 | 3,426 | 1,814 | S100T41B, S100VGU1, S100XWUB |
| Total assets | 6,966 | 7,284 | 7,745 | 7,800 | 7,725 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Net assets | 4,469 | 4,819 | 5,239 | 5,615 | 5,806 | S100T41B, S100VGU1, S100XWUB |
| Share capital | 176 | 176 | 176 | 176 | 176 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Property, plant and equipment | 1,318 | 1,325 | 1,335 | 1,285 | 1,430 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Intangible assets excluding goodwill | 7 | 30 | 40 | 36 | 32 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Investment securities | 107 | 96 | 160 | 75 | 84 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Current assets | 5,478 | 5,774 | 6,160 | 6,323 | 6,089 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Current liabilities | 1,255 | 599 | 1,129 | 693 | 812 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Short-term borrowings | 615 | — | — | — | — | S100QG1N |
| Long-term borrowings | 900 | 1,500 | 1,000 | 1,100 | 700 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Total liabilities | 2,497 | 2,465 | 2,506 | 2,185 | 1,919 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Equity attributable to owners of parent | 4,425 | 4,782 | 5,157 | 5,582 | 5,768 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Retained earnings | 4,079 | 4,437 | 4,812 | 5,237 | 5,471 | S100QG1N, S100T41B, S100VGU1, S100XWUB |
| Treasury stock | -50 | -50 | -50 | -50 | -109 | S100QG1N, S100T41B, S100VGU1, S100XWUB |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 23% | S100XWUB |
| Property, plant and equipment | 19% | S100XWUB |
| Intangibles and goodwill | 0% | S100XWUB |
| Investment securities | 1% | S100XWUB |
| Other assets | 57% | S100XWUB |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 25% | S100XWUB |
| Equity | 75% | S100XWUB |

### Balance sheet history

| Metric | FY ending Dec 2021 | FY ending Dec 2022 | FY ending Dec 2023 | FY ending Dec 2024 | FY ending Dec 2025 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 6,966 | 7,284 | 7,745 | 7,800 | 7,725 |
| Equity | 4,469 | 4,819 | 5,239 | 5,615 | 5,806 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 2,550 | 2,367 | 2,562 | 3,426 | 1,814 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 25.8% | S100XWUB |
| Fixed assets ÷ total assets | 18.5% | S100XWUB |
| Goodwill ÷ parent equity | — | —, S100XWUB |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 23.5% |
| Cash ÷ revenue | 32.8% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 103.8% |
| Cash vs. profit gap | 83 JPY mn (of net income 20.6%) |
| Shareholder returns / net income | 58.3% |
| Shareholder returns / FCF | 182.6% |
| Shareholder payments — dividends / net income | 41.3% |
| Shareholder payments — dividends / FCF | 129.3% |
| CapEx intensity (capex ÷ revenue) | 6.4% |
| Investing CF relative to operating CF | 383.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2021 | 6.9% | 0.67× | 4.6% | 1.57× | 7.3% | S100QG1N |
| 2022 | 7.7% | 0.89× | 6.9% | 1.55× | 10.7% | S100T41B |
| 2023 | 7.3% | 0.86× | 6.3% | 1.51× | 9.6% | S100VGU1 |
| 2024 | 9.3% | 0.80× | 7.4% | 1.45× | 10.7% | S100XWUB |
| 2025 | 7.2% | 0.71× | 5.2% | 1.37× | 7.1% | S100XWUB |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本製鉄株式会社 | Major shareholder | 15.3% | 2025-12-31 |
| 村 岡 克 彦 | Major shareholder | 10.8% | 2025-12-31 |
| 株式会社湊組 | Major shareholder | 8.1% | 2025-12-31 |
| 株式会社埼玉りそな銀行 | Major shareholder | 4.7% | 2025-12-31 |
| 石 田 龍 山 | Major shareholder | 4.7% | 2025-12-31 |
| 株式会社山本本店 | Major shareholder | 3.2% | 2025-12-31 |
| 清 水 長 助 | Major shareholder | 2.0% | 2025-12-31 |
| 新報国マテリアル従業員持株会 | Major shareholder | 1.5% | 2025-12-31 |
| 新報国マテリアル取引先持株会 | Major shareholder | 1.5% | 2025-12-31 |
| 宇 田 肇 | Major shareholder | 1.3% | 2025-12-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 訂正有価証券報告書－第93期(2025/01/01－2025/12/31) | S100XWUB | 2026-04-03 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100XWUB,, |
| 有価証券報告書－第92期(2024/01/01－2024/12/31) | S100VGU1 | 2025-03-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VGU1,, |
| 有価証券報告書－第91期(2023/01/01－2023/12/31) | S100T41B | 2024-03-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100T41B,, |
| 有価証券報告書－第90期(2022/01/01－2022/12/31) | S100QG1N | 2023-03-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100QG1N,, |
| 有価証券報告書－第89期(令和3年1月1日－令和3年12月31日) | S100NPIW | 2022-03-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NPIW,, |
| 有価証券報告書－第88期(令和2年1月1日－令和2年12月31日) | S100KZIK | 2021-03-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100KZIK,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).