Asaka Riken Co.,Ltd.
5724・Standard Market・Nonferrous Metals
Precious Metals Business
Core group business recovering, refining, and selling precious metals from urban mines
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (H1 FY2026 (ending March 2026)) | ¥4,403 million | ¥3,714 million (H1 FY2025 (ending March 2025)) | ↑ |
| Segment profit (H1 FY2026 (ending March 2026)) | ¥565 million | ¥109 million (H1 FY2025 (ending March 2025)) | ↑ |
| Net sales (full year FY2025 (ended March 2025)) | ¥7,268 million | － | — |
| Segment profit (full year FY2025 (ended March 2025)) | ¥302 million | － | — |
| Net sales YoY change | +18.6% | － | ↑ |
| Segment profit YoY change | +420.1% | － | ↑ |
Business Details
The company separates, recovers, and refines gold, silver, platinum, palladium, and other precious metals from urban mines—such as circuit board scraps and defective products collected from electronic component manufacturers and dental-related businesses—using its proprietary "Hyect device" (solvent extraction method), and sells them to domestic trading companies and electronic material manufacturers. The segment also handles precision cleaning and regeneration of vacuum deposition jigs with recovery of valuable metals, as well as the manufacture and sale of Lithium Carbonate from primary batteries. It accounts for approximately 83% of consolidated net sales and is the group's core segment.
Recent Overview
Significant increase in both H1 net sales and profit driven by surging gold prices
In H1 FY2026 (ending March 2026) (October 2025 to March 2026), gold prices remained at high levels amid increased safe-haven demand driven by heightened geopolitical risk and expectations of U.S. interest rate cuts, resulting in significant increases in net sales to ¥4,403 million (up 18.6% year on year) and segment profit to ¥565 million (up 420.1% year on year). The company continues to propose diverse business schemes aimed at acquiring new customers and maintaining and expanding relationships with existing customers.
Key Products
Growth Drivers
- Continued high gold prices in both dollar and yen terms (driven by geopolitical risk, safe-haven demand, and expectations of U.S. interest rate cuts)
- Acquisition of new customers and retention/expansion of existing customers (proposing diverse business schemes that process recovered precious metals into materials tailored to customer needs before returning them)
- Cost reduction and improved profitability through manufacturing process efficiency gains
- Expected expansion of electronic component demand in automotive-related parts and generative AI-related investment fields
- Expected increase in transaction volume driven by anticipated recovery in demand for mobile communication devices such as smartphones
Risks
- Risk of a sharp decline in metal prices (gold, silver, platinum, palladium): major direct impact on net sales and profit
- Foreign exchange risk: fluctuations affect the yen-equivalent value of dollar-denominated metal prices
- Risk of deteriorating production trends among major customers, namely electronic component and device manufacturers
- Risk of revenue concentration on specific customers
- Risk of supply chain disruption due to instability in the Middle East: potential for extended lead times and price increases for planned equipment installations
- Risk of increased financial burden due to rising borrowings (long-term borrowings of ¥6,978 million) associated with the expansion of and capital investment in the Iwaki plant for the LiB recycling business
Last updated: December 23, 2025