ENVALITH
アゼアス株式会社 logo

AZEARTH Corporation

3161・Standard Market・Wholesale Trade

Official website
アゼアス株式会社 logo
AZEARTH Corporation3161

Business

Azearth Corporation was established in 1947 and has been a pioneer in the safety and health field, beginning manufacturing and sales of chemical protective clothing made with DuPont™ Tyvek® in 1975. The company operates three businesses: its core Protective Clothing and Environmental Equipment/Materials business (net sales of ¥4,630 million), Healthcare Products business (net sales of ¥274 million), and Life Materials business (net sales of ¥2,821 million). Its major customers span a wide range, including chemical plants, pharmaceutical companies, semiconductor manufacturing plants, electric power companies, construction contractors, and local governments. The company operates two domestic distribution centers and its own factory in Akita (Azearth Design Center Akita). It is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

In the core protective clothing and environmental equipment business, sales staff with specialized expertise diagnose the working environment and propose appropriate protective equipment through consulting-style sales. Protective clothing is a limited-use (disposable) product, so once adopted by a customer, continuous repeat sales can be expected. Products are delivered to end users via distributors nationwide. The Life Materials business centers on wholesale of apparel sub-materials, tatami mat materials, and similar products. The company also has in-house manufacturing capability and is pursuing a transformation from a trading company structure to a manufacturer structure.

Company Strengths

Since 1975, the company has manufactured and sold chemical protective clothing made from DuPont™ Tyvek®, building its business foundation over more than 40 years as a pioneer in protective clothing manufacturing and sales in Japan. As a strategic partner of Asahi-DuPont Flash Spun Products Co., Ltd., it has handled domestic sales and possesses specialized knowledge and a customer base spanning diverse applications including infectious disease control, radioactive dust, asbestos, and chemical substances.

The company owns the Azearth Design Center Akita (Daisen City, Akita Prefecture), established in 2016 and expanded in 2022, as its core production facility, internalizing the manufacturing function for protective clothing and nonwoven masks. In April 2022, it opened the "Azearth Protective Clothing Labo" within FII (Faculty of Textile Science and Technology) at Shinshu University, promoting joint research on new evaluation methods and design approaches for protective clothing.

As of the end of FY2025 (ended April 2025), net assets stood at ¥6,768 million, total assets at ¥8,452 million, and the equity ratio at approximately 80%. During the fiscal year, ¥95 million of long-term borrowings were repaid, reducing fixed liabilities by 57.2%. The company held cash and cash equivalents of ¥2,652 million, maintaining financial discipline based on a policy of primarily self-funding.

ENVALITH's Perspective

For FY2026 (ending April 2026), the company achieved revenue growth for the first time in several periods, with net sales of ¥8,289 million (up 3.3% year on year), but operating profit remained flat at ¥192 million (up 0.3% year on year), and profit attributable to owners of parent declined sharply to ¥138 million (down 30.6% year on year). The main cause was the drop-off of extraordinary income recorded in the prior period (gain on liquidation of investments and reversal of foreign currency translation adjustments, etc., totaling ¥71 million), and the underlying improvement in profitability was limited. The operating margin remained low at 2.3%, and pressure on SG&A expenses continued due to depreciation of the new core system and rising personnel costs.

The Healthcare Products business achieved substantial revenue growth, with net sales of ¥388 million (up 42.2% year on year), but continued to post a segment loss of ¥55 million. Profitability was pressured by a ¥33 million valuation loss on masks manufactured during the startup period, which was recorded in cost of sales. While the steady expansion of BtoC orders is commendable, challenges remain in factory staffing cost increases and inventory management, and the feasibility of an early turnaround to profitability warrants continued monitoring.

The company's forecast for FY2027 (ending April 2027) calls for net sales of ¥8,574 million (up 3.4% year on year) and operating profit of ¥260 million (up 35.3% year on year), a substantial improvement in profitability. However, this forecast is premised on progress in securing contracts in new protective clothing fields such as flame-resistant and arc-flash products and the safety and environmental equipment field—both of which fell short of initial plans in FY2026 (ending April 2026)—as well as a turnaround to profitability in the Healthcare Products business. Downside risks also exist from the external environment, including US tariff policy and rising crude oil prices. The dividend payout ratio is high at 96.9% (FY2026, ending April 2026), and attention is also needed regarding the company's ability to maintain dividends if profit improvement does not materialize.

Growth Strategy

Aiming for medium- to long-term growth through a structural shift from trading company to manufacturer and expansion of business domains in the protective clothing market

Promoting solution proposals combining personal protective equipment with facilities in new protective clothing fields such as flame-resistant, arc flash, and high-visibility clothing, as well as in the safety and environmental equipment field including dust collectors. Continuing customer development leveraging "Bougofuku no Chie.com" (Protective Clothing Wisdom.com) in anticipation of increased demand driven by strengthened autonomous management of chemical substances. In FY2026 (ending April 2026), contract signings progressed but fell short of the initial plan.

Aiming for business expansion and improved profitability through two approaches: strengthening factory staffing and increasing production capacity to meet growing orders from BtoC channels such as drugstores, and developing new BtoB customers such as pharmaceutical companies and semiconductor factories. In FY2026 (ending April 2026), sales increased 42.2%, but a segment loss of ¥55 million continued due to inventory valuation losses and other factors.

Continuing to concentrate management resources on "ReFace," the core high-margin product in the functional building materials field, while developing new sales channels. In FY2026 (ending April 2026), the segment achieved increased revenue and profit, with segment sales of ¥2,865 million (up 1.9% year on year) and segment profit of ¥169 million (up 1.4% year on year), showing steady progress.

Promoting new business development in the apparel accessory materials field, using AZEARTH VIETNAM CO., LTD., newly consolidated in FY2026 (ending April 2026), as a foothold. As part of the medium-term management plan policy, aiming to strengthen overseas production and sales functions for protective clothing and healthcare products through Japan-Vietnam collaboration.

Aiming to improve business process efficiency and enhance management sophistication through data utilization by leveraging the new core system, which began operation in May 2025. In FY2026 (ending April 2026), depreciation expenses were a factor increasing SG&A expenses, but a contribution to medium- to long-term cost structure improvement is expected.

Last updated: July 17, 2026