ENVALITH
株式会社オーイズミ logo

OIZUMI Corporation

6428・Standard Market・Machinery

Official website
株式会社オーイズミ logo
OIZUMI Corporation6428

Business

OIZUMI Corporation, founded in 1974 and headquartered in Atsugi City, Kanagawa Prefecture, is a company listed on the TSE Standard market. Building on its Amusement Business, which manufactures and sells Automatic Service Equipment (such as change machines and counting machines for pachinko parlors), System Equipment, and Gaming Machines (Pachislot/Pachinko Machines), the company operates four segments: real estate leasing ("Real Estate Business"), electricity sales from solar power generation ("Electricity Business"), and EC sales/OEM manufacturing of konjac, health foods, cosmetics, and other products ("Food & EC Business"). The group's consolidated net sales for FY2026 (ending March 2026), including 13 subsidiaries, totaled ¥21,721 million. The company has positioned the Food & EC Business as its core future growth driver and is advancing a transformation of its business portfolio.

Business Model

In the Amusement Business, manufacturing and sales of gaming machines and peripheral equipment account for approximately 47% of sales. The Real Estate Business generates stable cash flow through rental income (net sales of ¥857 million, segment profit margin of approximately 47%), while the Electricity Business generates stable cash flow through electricity sales revenue under the FIT scheme (net sales of ¥1,012 million, segment profit margin of approximately 54%). The Food & EC Business pursues growth through two pillars—EC sales of proprietary brands and OEM Contract Manufacturing—and has expanded to net sales of ¥9,668 million, accounting for approximately 45% of the total.

Company Strengths

As of the end of FY2026 (ending March 2026), the company held 1,166 industrial property rights, including those pending application, in the Amusement Business. R&D expenses for the period, including personnel costs, amounted to ¥1,328 million, and the accumulated technology and patent portfolio in the gaming machines and peripheral equipment field form a barrier to competitive entry.

The combined segment profit of the Real Estate Business (net sales of ¥857 million, segment profit of ¥399 million) and the Electricity Business (net sales of ¥1,012 million, segment profit of ¥550 million) totaled ¥949 million. Electricity sales revenue under the FIT scheme and a portfolio of leased properties in the Tokyo metropolitan area and Kanagawa Prefecture form a structure that helps offset the significant fluctuations in earnings from the Amusement Business.

Three companies—OIZUMI Shimonita (konjac manufacturing), Takeuchi Pharmaceutical (health foods and cosmetics), and OIZUMI Purearth (gut health-related foods)—handle manufacturing, development, and EC sales in an integrated manner. Delivery of a new plant was completed in January 2026, and FSSC 22000 certification is scheduled to be obtained in April 2026, establishing a production system capable of handling everything from OEM contract manufacturing to overseas exports.

ENVALITH's Perspective

Segment profit in the Amusement Business turned from a loss of ¥394 million in FY2025 (ending March 2025) to a profit of ¥97 million in FY2026 (ending March 2026). New models such as the smart-slot "L Umineko no Naku Koro ni 2" fell short of expected unit sales, but Pachinko machines shipped in excess of expectations, offsetting this. However, the structural decline in the gaming population, the accelerating closure of small and midsize halls, and shrinking demand for peripheral equipment persist, and the effectiveness of refining the model lineup and rationalizing development costs will be tested for a sustainable recovery in profit levels.

The Food & EC Business posted net sales of ¥9,668 million against segment profit of ¥209 million (margin of approximately 2.2%), remaining at a low level. In addition to the structural challenge of the OEM business's growth worsening the cost ratio, depreciation expenses for the new plant and rising logistics costs are pushing up SG&A expenses. The key to margin improvement will be the production efficiency gains from the full operation of the new OIZUMI Shimonita plant scheduled for May 2026 and the acquisition of FSSC22000 certification, but it is expected to take time before these effects show up in the numbers.

Of the ¥1,019 million in income before income taxes for FY2026 (ending March 2026), ¥434 million consists of gains on sale of fixed assets, resulting in a large gap versus ordinary profit of ¥661 million. In addition, long-term borrowings increased from ¥9,667 million to ¥12,640 million due to real estate acquisitions, inflating the balance of interest-bearing debt. The interest coverage ratio improved to 12.9x (from 3.2x in the previous period), but this was due to a substantial improvement in operating cash flow, and the increasing trend in the borrowing balance requires continued monitoring from the perspective of financial discipline.

Growth Strategy

Nurturing the Food & EC Business as a core growth driver while pursuing rationalization of the Amusement Business and maintaining earnings stability across established businesses

Delivery of the new plant at OIZUMI Shimonita was completed in January 2026, with full operation scheduled for late May 2026. FSSC22000 registration was completed on April 24, 2026, and the company aims to enhance production capacity and efficiency and expand sales channels through a series of certifications covering everything from inner bags to outer packaging and shipping.

In addition to securing new orders from major domestic companies, expansion of sales channels into Southeast Asia, Europe, North America, and China cross-border EC is underway. Inquiries from overseas buyers are also increasing, and the number of countries in which the company conducts business continues to expand. A high repeat rate forms a stable revenue base.

The company changed its trade name and rebranded effective April 1, 2026. It is promoting the aggressive introduction of new gut health-related products and expanding China cross-border EC to capture share in the globally growing gut health market. Offline wholesale transactions are also on an increasing trend domestically.

While focusing on expanding the share of equipment such as units in line with the increase in the number of installed smart gaming machines, the company is promoting the development of models focused on priority content and a review of the development cost structure. For the peripheral equipment segment, the company aims to scale down operations after verifying profitability, and to shift management resources toward businesses with higher profitability and growth potential.

In the second quarter of FY2026 (ending March 2026), the company acquired rental real estate in Chuo-ku and Toshima-ku, Tokyo. Meanwhile, it sold land in Atsugi City, Kanagawa Prefecture to strengthen its financial position. The company will maintain its policy of continuing to acquire high-quality, high-profitability rental properties while also reviewing its held assets in parallel.

Last updated: July 19, 2026