Seibu Giken Co., Ltd.
6223・Standard Market・Machinery
Business
Nishio Rikagaku Co., Ltd. was founded in 1965 and, based on the continuous honeycomb forming technology it established in 1974, manufactures, sells, and provides services for Desiccant Dehumidifiers, VOC Concentrators, Total Heat Exchangers, and related equipment as a single-segment company in the Air Conditioning Business. The company operates 4 domestic plants (in Koga City and Munakata City, Fukuoka Prefecture) and 6 overseas locations (Sweden, Poland, the United States, and China), expanding globally through a group of 12 companies including 11 consolidated subsidiaries. Its main customers include manufacturers of lithium-ion batteries, semiconductors, automobiles, food, and pharmaceuticals, and it maintains a sales network spanning approximately 50 countries. The company listed on the Standard Market of the Tokyo Stock Exchange in October 2023.
Business Model
The main revenue source is the manufacture and sale of equipment and systems centered on the core technology, the honeycomb rotor. In Japan, the company provides total service covering everything from dry room system design to installation work, regular maintenance, and rotor replacement, building long-term customer relationships. Overseas, the company is also promoting the overseas expansion of its high-margin service business, including making its service division independent in China. It also offers a rental service, which functions as a gateway for acquiring new customers.
Company Strengths
Building on continuous honeycomb forming technology established in 1974, the company has independently advanced its proprietary technology for impregnating functional agents such as silica gel and zeolite. The VOC Concentrator rotor was the world's first such product commercialized in 1988. It has been adopted by customers in over 30 countries worldwide, and even in the Chinese market, the company has established a position as a high-value-added product versus inexpensive local products.
Against a backdrop of expanding domestic investment in lithium-ion battery manufacturing, orders received for Desiccant Dehumidifiers in FY2025 (ending December 2025) surged to ¥22,373 million (148.6% year-on-year). The order backlog also remained at a high level of ¥11,302 million (130.9% year-on-year), functioning as a leading indicator expected to translate into sales in subsequent periods.
In FY2025 (ending December 2025), the operating profit margin on sales improved to 13.2% (up from 12.6% in the previous period), and the EBITDA margin improved to 16.1% (up from 15.6% in the previous period). While maintaining a gross profit margin of 34.0% due to an increase in high-margin domestic projects, the company reduced the SG&A expense ratio from 21.4% to 20.8%, resulting in operating profit of ¥4,530 million, up 12.4% year-on-year.
ENVALITH's Perspective
Performance Trend
Revenue over the past three fiscal years grew steadily from ¥28,725 million (FY2023) to ¥32,069 million (FY2024) to ¥34,322 million (FY2025), and growth accelerated further in Q1 FY2026 (ending December 2026), reaching ¥9,619 million (up 40.7% year on year). The main driver was a sharp increase in domestic Desiccant Dehumidifier sales (Japan-bound sales of ¥6,186 million, versus ¥3,122 million in the same period a year earlier), with the expansion of domestic EV battery manufacturing investment serving as a powerful external tailwind. Net income attributable to owners of the parent rose sharply to ¥1,443 million (up 56.2% year on year). It should be noted that a subsidy income of ¥500 million related to a new domestic plant was recorded as extraordinary income, which should be regarded as a one-time factor. Full-year guidance (revenue of ¥36,050 million, operating income of ¥4,030 million) remains unchanged. The EBITDA margin declined somewhat to 18.7% (versus 21.7% in the same period a year earlier).
Growth Strategy
Establishing an expanded production system through the new domestic plant and expanding market share in the energy device and semiconductor sectors
A new domestic plant is under construction to meet robust domestic demand (mainly for Desiccant Dehumidifiers used in EV battery manufacturing). As of the end of the first quarter of FY2026 (ending December 2026), construction in progress increased by ¥834 million from the end of the previous fiscal year. Subsidy income of ¥500 million has already been recorded, and following completion, an acceleration in the drawdown of the order backlog and continued sales growth are expected.
The company is promoting expanded adoption of dehumidification and VOC Concentrator systems for lithium-ion battery, all-solid-state battery, and semiconductor manufacturing processes. Sales to South Korea surged to ¥861 million in the first quarter of FY2026 (ending December 2026) (from ¥214 million in the same period of the previous year), reflecting progress in expansion into Asian battery manufacturing bases.
Beyond equipment sales, the company is promoting the expansion of total engineering services, including installation work, maintenance, and rental. Service revenue recognized over a period of time in the first quarter of FY2026 (ending December 2026) expanded sharply to ¥4,397 million (from ¥870 million in the same period of the previous year), reflecting progress in building a recurring, stock-type revenue base.
The full-year earnings forecast calls for net sales of ¥36,050 million (up 5.0% year on year) and net income attributable to owners of parent of ¥3,870 million (up 12.0% year on year). The high progress rate in the first quarter (26.7% for net sales, 37.3% for net income) indicates a favorable start toward achieving the targets; however, the full-year forecast remains unchanged, and demand trends in the second half will be key.
Last updated: July 17, 2026