OKUMURA ENGINEERING Corp.
6229・Standard Market・Machinery
Business
OKM Co., Ltd. is a valve-specialist manufacturer headquartered in Yasu City, Shiga Prefecture, that manufactures and sells fluid control equipment including Butterfly Valves, Knife Gate Valves, and Pinch Valves. The company supplies products to a wide range of industries in Japan and overseas, including building equipment, shipbuilding, petrochemicals, electric power, and food, and operates its business under two market segments: "Land Use" (42.2% of sales) and "Marine Use" (57.8% of sales). Its consolidated subsidiaries include OKM VALVE (M) SDN. BHD. in Malaysia and Okumura Valve (Jiangsu) Co., Ltd. in China, with overseas sales accounting for approximately 20% of total sales. The company handles over 100,000 product variations through customizable combinations of model type, size, material, and control method.
Business Model
The company develops, manufactures, and sells customized valves tailored to customer needs, opening up niche markets that standard products cannot adequately serve, and securing profitability through sales of high-value-added products. In the marine sector, the company has obtained manufacturing and sales certification for Marine Exhaust Gas Valves from two global licensors (with a combined market share of approximately 90%), aiming to expand its share in a market with high entry barriers. Sales are centered on trading company channels, with the top three companies—Metal One, Eiwa, and YUASA—accounting for approximately 51% of net sales.
Company Strengths
For Marine Exhaust Gas Valves compliant with IMO's third-stage NOx regulations, the company was among the first to obtain manufacturing and sales certification from two licensors that together hold approximately 90% of the global market share. This certification functions as a barrier to entry, and marine sales in FY2026 (ending March 2026) grew significantly by 18.4% year on year to ¥6,423 million. The company has a track record of substantial sales growth, driven mainly by demand for power generation auxiliary equipment.
The company handles over 100,000 product variations through combinations of model type, size, components, materials, and control methods, enabling it to cultivate niche markets that standard products cannot address. It has built an industry-government-academia collaboration framework leveraging technical expertise accumulated since its founding in 1902 and its R&D center (with five testing laboratories) established in 2020. R&D expenses for the fiscal year under review totaled ¥139,852 thousand.
For LNG Valve (for FGSS) used in LNG-fueled vessels, which are drawing attention as a fuel for the decarbonization transition period, the company achieved expanded sales channels and improved profitability. Operating profit for FY2026 (ending March 2026) was ¥1,295 million (up 65.3% year on year), with the securities report explicitly citing improved profitability of LNG Valve (for FGSS) and increased sales of high-value-added products as the main factors.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal periods from ¥8,456 million in FY2022 to ¥11,114 million in FY2026, reaching a new record high. Operating profit, after declining to ¥668 million in FY2024, recovered sharply to ¥784 million in FY2025 and ¥1,295 million in FY2026, bringing the operating margin to 11.7%. As an external factor, rising global demand for newbuild vessels and replacement demand boosted the marine market (revenue of ¥6,423 million, up 18.4% year on year). On the other hand, an extraordinary loss of ¥166 million was recorded in connection with the revision of the new core system plan, limiting net income attributable to owners of parent to ¥798 million (up 44.3% year on year). For FY2027 (ending March 2027), revenue is projected at ¥11,900 million (up 7.1% year on year), while operating profit is forecast to decline to ¥1,060 million (down 18.2% year on year) due to persistently high materials and energy costs and increased personnel expenses.
Growth Strategy
Aiming for consolidated net sales of ¥20.0 billion in FY2031 (ending March 2031) under "Create200" through deepening existing operations, overseas expansion, and challenges in new business areas
Promoting expanded sales of high-value-added and customized products and improved profitability in the land-use market (petrochemicals, steel, metals, etc.) and the marine market (shipbuilding, LNG-fueled vessels, etc.). In FY2026 (ending March 2026), the marine market grew significantly, up 18.4% year on year, and profitability improvements were also achieved for the LNG Valve (for FGSS).
Aiming to be a company consistently chosen in the global market, promoting expanded sales channels to overseas customers. Expansion of sales channels for the LNG Valve (for FGSS) has been successful, and the expansion of overseas business is also confirmed by the increase in the foreign currency translation adjustment (up ¥110 million year on year).
Aiming to enter new domains beyond the framework of the existing Valve Manufacturing and Sales business. The new core system implementation plan has been forced to be reconsidered (impairment loss of ¥68 million and contract cancellation loss of ¥98 million were recorded), and the company is now at a stage where it must reconsider the direction of its digitalization and IT investment.
Last updated: July 19, 2026