ENVALITH
不二ラテックス株式会社 logo

FUJI LATEX CO., LTD.

5199・Standard Market・Rubber Products

Official website
不二ラテックス株式会社 logo
FUJI LATEX CO., LTD.5199

Business

Fuji Latex Co., Ltd. is a rubber products and precision equipment manufacturer founded in 1949, listed on the Standard Market of the Tokyo Stock Exchange. Its core businesses are the Precision Equipment Business (shock absorbers such as Shock Absorber, Rotary Damper, etc.) and the Medical Devices Business (rubber medical devices such as condoms, probe covers, etc.), forming two main pillars. In addition, the Food Container Business and SP Business make up a four-segment structure. Shock absorbers are supplied to a wide range of markets including housing equipment, home appliances, automobiles, and industrial production equipment, while medical devices are deployed domestically and internationally as a comprehensive birth control manufacturer. The company has subsidiaries including Fuji Life Co., Ltd. (condom sales) and FUJI LATEX SHANGHAI CO., LTD. (sales base in China).

Business Model

The Precision Equipment Business (net sales of ¥4,401 million, segment profit margin of 23.2%) is a highly profitable segment accounting for approximately 65% of company-wide sales and the majority of profit. The Medical Devices Business, which manufactures and sells rubber products utilizing dipping technology, secured net sales of ¥2,128 million. Manufacturing is carried out at domestic plants (Shin-Tochigi and Tochigi Chizuka), with exports to Asia, Europe, and the United States also conducted through a Chinese subsidiary. The company has invested ¥135 million in research and development, continuously promoting higher value-added products and innovation in production technology.

Company Strengths

The company is a comprehensive shock absorber and damper manufacturer, with both Shock Absorber and Rotary Damper as its dual core products, a positioning without equal domestically. In FY2026 (ending March 2026), the Precision Equipment Business segment achieved profit of ¥1,021 million (up 43.9% year on year), with a profit margin of 23.2%. Orders received rose 9.7% year on year to ¥3,822,688 thousand, and the order backlog also grew a robust 17.8% year on year, reflecting the high technological entry barriers in these figures.

The company possesses world-class rubber thin-film forming technology (dipping technology), applied to the manufacturing of a wide variety of products including condoms, probe covers, and food containers. It has established a quality control system through multiple certifications such as ISO13485, ISO9001, and ISO14001. In June 2025, the Tochigi Plant was consolidated into the Tochigi Chizuka Plant, centralizing the core production base for medical and daily-life products. Investment in automation of manufacturing equipment also continues (capital expenditure of ¥40 million in the Medical Devices Business).

In FY2026 (ending March 2026), cash flow from operating activities was secured at ¥622 million (comparable to the prior period's ¥633 million). The high profit margin of the Precision Equipment Business supported cash generation across the company, while a ¥3.5 billion commitment line agreement also secured a liquidity buffer. In financing activities, the company repaid ¥366 million in long-term borrowings and paid ¥98 million in dividends, while cash and cash equivalents increased to ¥2,239 million.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) achieved a substantial increase to ¥415 million (up 99.4% year on year), but extraordinary losses totaling ¥243 million—including an impairment loss of ¥172 million and a loss on disposal of fixed assets of ¥54 million associated with the factory relocation and consolidation—were incurred, leaving profit attributable to owners of parent at just ¥63 million (down 78.7% year on year). In FY2027 (ending March 2027) as well, one-time costs are expected to arise in connection with the relocation of the Moka Plant to the Tochigi Chizuka Plant (scheduled for completion in March 2027), and the pace of net income recovery warrants close monitoring.

The SP Business posted net sales of ¥86 million (down 77.7% year on year) and a segment loss of ¥51 million, while the Food Container Business posted net sales of ¥182 million (down 14.0% year on year) and a segment loss of ¥118 million, with losses widening in both businesses. In the Food Container Business, the main causes of the widened loss were reduced production efficiency due to the start-up of new production equipment and delays in the factory relocation. Both businesses are planning increased revenue and profit for FY2027 (ending March 2027), but the Food Container Business's segment profit is still projected to remain in the red, making the effectiveness of structural reforms and the timing of profitability a key point to confirm for investment decisions.

The consolidated earnings forecast for FY2027 (ending March 2027) is bullish, projecting net sales of ¥7,500 million (up 10.3% year on year), operating profit of ¥480 million (up 15.4%), and net income of ¥287 million (up 351.0%). This is premised on continued increases in revenue and profit in the Precision Equipment Business and higher overseas sales in the Medical Devices Business. External factors that pose downside risks include difficulty in procuring materials and cost increases due to the situation in the Middle East, the impact of US tariff policy, and rising costs from the continued weak yen. In addition, depending on the scale of one-time costs associated with the completion of the Moka Plant relocation, there is a possibility of divergence from the net income forecast, making progress management important.

Growth Strategy

Rebuilding the profit base through the establishment of a two-plant structure for the Precision Equipment and medical/daily living products businesses and expansion into overseas markets

Land adjacent to the existing plant (within the Tochigi Interchange Industrial Park) has already been acquired. The company will continue to expand state-of-the-art equipment that enables new product development and efficient production, aiming to build a next-generation manufacturing base. In FY2026 (ending March 2026), ¥284 million in tangible fixed asset acquisitions was allocated to the Precision Equipment Business.

Consolidation of the Healthcare division (Tochigi Plant) was completed in June 2025. For the Food Container Business, new production equipment will be installed at the Tochigi Chizuka Plant, and relocation from the Mooka Plant is planned to be completed by March 2027. Consolidating the three plants into a single plant will fundamentally improve the fixed cost structure.

Revenue growth is expected on the assumption of increased overseas sales of Probe Covers & Medical Products and other medical products. Cost reduction through automation of manufacturing equipment and diversification of raw material procurement, along with expansion of high-quality product variations, will be promoted over the medium term. For FY2027 (ending March 2027), the Medical Devices Business as a whole is expected to see higher revenue but lower profit (due to increased integration costs).

The SP Business will fundamentally review its existing business through new product development and cost control, with plans for higher revenue and profit in FY2027 (ending March 2027). The Food Container Business will improve its fixed cost structure through renewal of production equipment following completion of the Mooka Plant relocation, but segment losses are expected to continue until the relocation is complete.

The company plans to expand human capital investment—such as improved compensation and enhanced training—and IT-related investment company-wide, aiming to enhance corporate value over the medium term. For FY2027 (ending March 2027), these cost increases are anticipated but are expected to be offset by higher profit in the Precision Equipment Business.

Last updated: July 19, 2026