ENVALITH
ヤマシンフィルタ株式会社 logo

YAMASHIN-FILTER CORP.

6240・Prime Market・Machinery

Official website
ヤマシンフィルタ株式会社 logo
YAMASHIN-FILTER CORP.6240

Business

Yamashin Filter, founded in 1956, is a specialist filter manufacturer with two core pillars: the Construction Machinery Filter Business (hydraulic filters for construction machinery) and the Air Filter Business. The Construction Machinery Filter Business accounts for approximately 89% of net sales of ¥20,941 million (FY2026 (ending March 2026)), supplying construction machinery makers including CATERPILLAR INC. The company internally produces the "filter media," the core component of a filter, handling everything from product design through manufacturing in an integrated manner. In addition to domestic manufacturing (Saga Plant), it has production bases in the Philippines and Vietnam, and operates globally through sales subsidiaries in the US, Europe, Southeast Asia, and China. Starting from FY2027 (ending March 2027), the company is launching the Functional Materials Business as a new segment, working to cultivate a third pillar by applying nanofiber technology to functional textiles, life sciences, and industrial materials.

Business Model

The Construction Machinery Filter Business has a dual demand structure of new vehicle installation (OEM) and periodic replacement parts (aftermarket). Replacement parts are highly profitable and generate stable revenue as the number of operating units accumulates. By developing and manufacturing filter media in-house, the company achieves flexible responsiveness to customer specifications and differentiation, while years of accumulated construction machinery circuit know-how forms a barrier to entry. The Air Filter Business offers a wide product lineup for buildings, factories, and medical facilities, and is advancing value-added enhancement by building a direct sales system for the nanofiber-based NanoWHELP.

Company Strengths

The company conducts research, development, and manufacturing of filter media—the core component of filters—consistently within the group, enabling a system capable of developing proprietary filter media and filter media structures that meet diverse customer specifications. The company has been engaged in filter development since around the same time as the domestic production of hydraulic excavators began, and its knowledge of hydraulic circuits and years of accumulated know-how contribute to differentiation from competitors.

The company has established mass production technology for nanofiber that surpasses conventional glass fiber in durability, filtration performance, and environmental impact reduction. In the Construction Machinery Filter Business, adoption by major construction machinery manufacturer customers has begun, while the air filter (NanoWHELP) has been increasingly adopted in office buildings, hospitals, factories, and other facilities. A PFAS-FREE oil mist filter has also been commercialized, confirming the track record of technology commercialization.

The company has established a sales structure covering major construction machinery markets through four sales subsidiaries: YAMASHIN AMERICA INC. (US), YAMASHIN EUROPE BRUSSELS BV (Europe), YAMASHIN THAI LIMITED (Southeast Asia and India), and YAMASHIN FILTER(SIP) INC. (China). Sales to CATERPILLAR INC. amounted to ¥2,395 million (11.4% of net sales), demonstrating an accumulated track record of transactions with major customers.

ENVALITH's Perspective

In FY2026 (ending March 2026), the Construction Machinery Filter Business expanded steadily, with net sales of ¥18,654 million (+6.7%) and operating profit of ¥2,713 million (+6.2%). Meanwhile, the Air Filter Business suffered a significant profit decline, with net sales of ¥2,286 million (-12.5%) and an operating loss of ¥120 million, due to production and shipment delays associated with the core system replacement and increased system operating costs. Consolidated operating profit came to ¥2,592 million (-1.4%), while ordinary profit was limited to ¥2,535 million (-5.0%), also affected by an expansion in foreign exchange losses (¥62 million). The disruption in the Air Filter Business is said to have been resolved within the fiscal year, making the recovery in FY2027 (ending March 2027) a key point of focus.

The consolidated earnings forecast for FY2027 (ending March 2027) anticipates a recovery, with net sales of ¥22,560 million (+7.7%), operating profit of ¥2,825 million (+9.0%), and net profit of ¥2,005 million (+16.7%). The Construction Machinery Filter Business aims for operating profit of ¥3,190 million (+17.6%) through increased sales volume, price revisions, and cost improvements. On the other hand, approximately ¥370 million in expenses is expected to be recognized as upfront investment for launching a new business (Functional Materials Business), making the timing of medium-term profit contribution a point to monitor. Foreign exchange assumptions are set at ¥155 to the US dollar and ¥180 to the euro.

The annual dividend for FY2026 (ending March 2026) is ¥18 per share (increased from ¥12 in the previous fiscal year), with a payout ratio of 73.1% and a total return ratio of 150.1% (including ¥1,273 million in share buybacks), reflecting an active shareholder return policy. As a subsequent event, a share buyback with an upper limit of 1,000,000 shares and ¥700 million was also resolved in May 2026. On the other hand, continued attention is needed regarding the business concentration risk, with the Construction Machinery Filter Business accounting for approximately 89% of net sales, concerns over declining construction machinery demand due to prolonged tensions in the Middle East, tariff impacts (currently explained as minor), and the risk of production concentration in the Philippines.

Growth Strategy

Centered on nanofiber technology, the company is pursuing higher value-added construction machinery filters with North American expansion, alongside the establishment of a new business portfolio.

The company continues to promote share expansion in the North American market, which remains solid amid AI data center demand and infrastructure investment. In FY2027 (ending March 2027), it aims to improve the Construction Machinery Filter Business operating margin to 15.8% (up from 14.5% in the previous fiscal year) through sales price revisions and cost improvements. The plan is to absorb the fixed cost increase from a 7% base pay raise through pricing and cost improvements.

Following the resolution of core system disruptions, the company aims to recover sales of existing products through operational stabilization and improved supply capabilities. Progress in building a direct sales system for NanoWHELP is steadily advancing, with overseas expansion, starting with the European market, also under consideration. In FY2027 (ending March 2027), the company aims to achieve a return to profitability in the Air Filter Business (operating profit of ¥5 million).

Leveraging the heat resistance and conductivity properties of nanofiber, the company aims to enter the life science and industrial materials fields, starting with functional textiles (product supply to the apparel market has already begun). It is advancing joint research and development with universities and research institutions, as well as establishing mass production capabilities. In FY2027 (ending March 2027), the company expects to record approximately ¥370 million in upfront investment costs.

Last updated: July 19, 2026