Asaka Riken Co.,Ltd.
5724・Standard Market・Nonferrous Metals
Business
Asaka Riken Co., Ltd. is a resource-recycling company that recovers, refines, and sells precious metals such as gold, silver, platinum, and palladium as well as copper from industrial waste such as electronic component scrap and etching waste liquid, using proprietary technology. Founded in 1969, the company is headquartered in Koriyama City, Fukushima Prefecture, and is listed on the TSE Standard Market. Its main customers include electronic component and device manufacturers and dental-related businesses. With the Precious Metals Business (approximately 84% of net sales) as its core, the company also operates the Environmental Business, Systems Business, Transportation Business, and Analysis Business. Its consolidated subsidiary Asaka Koun Co., Ltd. handles logistics within the group. As a long-term vision, the company has set the goal of becoming the “No. 1 company contributing to the realization of a resource-recycling society,” and as a next-generation growth business, it aims to begin mass production operations for its lithium-ion battery (LiB) recycling business in April 2028.
Business Model
The company collects electronic component scrap, etching waste liquid, and similar materials from customers, then separates and refines precious metals and copper using its proprietary "Hi-Ect apparatus" (solvent extraction method) and other technologies. The recovered Gold Bullion, Silver Bullion, Platinum, Palladium, and other materials are sold to domestic trading companies and electronic materials manufacturers, and the company also offers a scheme to return processed materials tailored to customer needs. It additionally engages in waste liquid regeneration, copper recovery, and sales of water treatment agents, generating revenue from both waste processing and resource sales. The business has the characteristic that revenue is directly linked to the level of metal prices (gold and copper).
Company Strengths
Since developing gold recovery technology in 1971, the company has accumulated over 50 years of precious metal recycling technology. It holds proprietary refining technology using its in-house developed "Hyect Device" (solvent extraction method), and in fiscal 2012 received the Commissioner of the Japan Patent Office Award (Excellent Patent Utilization Company) at the "IP Merit Award" sponsored by the Ministry of Economy, Trade and Industry's Patent Office. The company has established a competitive advantage in a business domain with high technological entry barriers.
In FY2025 (ending September 2025), as the dollar-denominated price of gold remained at historically high levels after setting record highs, the Precious Metals Business achieved net sales of ¥7,268 million (up 11.3% year on year) and segment profit of ¥302 million (up 111.9% year on year), a substantial increase. The company has an earnings structure in which rising gold prices are directly reflected in sales and profit.
The head office plant (2015) and Iwaki plant (2017) obtained RMAP (formerly CFS) certification, which certifies the non-use of conflict minerals. This secures procurement eligibility within global supply chains and provides an international certification foundation that contributes to continuing and expanding business with global electronic components and device manufacturers.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, net sales fluctuated in the range of ¥7,968 million to ¥8,686 million, but for FY2026 (ending September 2026), the full-year forecast of ¥10,750 million represents a sharp expansion to a level approaching the ¥10 billion mark for the first time. First-half net sales of ¥5,283 million represent 49.1% progress against the full-year forecast. The operating margin improved significantly to 13.6% in the first half (versus 5.6% in the same period of the prior year). As an external factor, gold prices remained at elevated levels amid geopolitical risk, safe-haven demand, and expectations of U.S. interest rate cuts, while copper prices also trended firmly on demand such as data center construction associated with the spread of AI. Operating cash flow secured an inflow of ¥409 million, but a ¥679 million increase in inventories and a ¥155 million increase in trade receivables put pressure on funds. Cash and cash equivalents remained at an ample level of ¥4,891 million.
Growth Strategy
Strengthening the profitability of existing businesses and transforming the business structure through the commercialization of the LiB recycling business
Promoting new customer acquisition and retention/expansion of existing customers by proposing diverse business schemes that process and return recovered precious metals into materials tailored to customer needs. Also focusing on cost reduction through more efficient manufacturing processes, aiming to build a profit base less susceptible to market price fluctuations.
Established a process that achieves both CO₂ emissions reduction and a high recovery rate of rare metals. Currently proceeding with the expansion of the Iwaki Plant and the introduction of production equipment. Continuing negotiations toward establishing a recycling outsourcing scheme based on an MOU with battery manufacturers. There is a risk of impact on equipment procurement due to instability in the Middle East situation.
Continuing negotiations with related companies based on a memorandum of understanding (MOU) under which the Company undertakes recycling operations for a portion of process waste materials generated from battery manufacturers' plants. Aiming to secure stable raw material procurement and outsourcing revenue through the establishment of this scheme.
Last updated: July 17, 2026