HEPHAIST Co., Ltd.
6433・Standard Market・Machinery
Business
Hi-Heist Co., Ltd. is a precision equipment specialist manufacturer founded in 1962, with production facilities in Saitama and Akita and a sales subsidiary in Shanghai, China. Its core product, Linear Motion Equipment (Linear Ball Bushings, etc.), consists of component parts used in the moving sections of machine tools and industrial machinery, and the company has accumulated over 60 years of manufacturing experience starting from its development of an original oil-impregnated sintered alloy solid-type retainer. In Precision Parts Processing (Racing Parts, Prototype Parts), the company undertakes contract processing of racing parts and prototype parts, while in Unit Products (Stages, Spherical Bearings), it supplies thin multi-axis stages using parallel mechanisms and spherical bearings to semiconductor manufacturing equipment makers and other customers. Its major customers are THK Co., Ltd. (55.3% of net sales) and the Honda Group (16.9% of net sales), and the company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company produces high-precision parts through in-house integrated manufacturing at its own factories, earning revenue from Linear Motion Equipment through a two-pronged approach of OEM supply to major manufacturers such as THK and sales under its own brand. Precision Parts Processing (Racing Parts, Prototype Parts) generates revenue from contract processing fees paid by customers, while Unit Products (Stages, Spherical Bearings) are sold directly to semiconductor and industrial equipment manufacturers as high-value-added products leveraging the company's proprietary parallel mechanism technology. Although R&D expenses remain small at ¥8 million for FY2026 (ending March 2026), the company promotes product development through DR activities that integrate technology, sales, and manufacturing as a unified three-way effort.
Company Strengths
The company began research and development of Linear Ball Bushings in 1964 and succeeded in developing a unique oil-impregnated sintered alloy solid-type retainer. It commenced OEM supply to NSK in 1968 and to THK in 1990, among others, and has gained recognition for its technical capabilities from major precision equipment manufacturers over a manufacturing history spanning more than 60 years. The company holds multiple proprietary patents, including for Spherical Bearings (patented in 1997) and parallel-mechanism stages.
Based on a basic transaction agreement with THK Co., Ltd., sales to THK in FY2026 (ending March 2026) reached ¥905 million (55.3% of total net sales). The company has maintained an OEM supply relationship with THK for over 30 years since the establishment of the new Akita plant in 1990, and continued transactions with this major customer serve as a stable underpinning for sales.
Whereas typical multi-axis stages employ a structure in which axes are stacked, the company's parallel mechanism arranges multiple actuators on the same plane, achieving a thinner profile and lower power consumption. Stage products for semiconductor manufacturing equipment achieved sales of ¥232 million in FY2026 (ending March 2026), up 16.9% year on year, making it, together with the effect of price increases for Spherical Bearings, the only item to achieve increased sales.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥2,742 million in FY2022 (ending March 2022) and has declined for four consecutive periods, falling to ¥1,636 million in FY2026 (ending March 2026), down 27.1% year on year and to roughly 40% of the FY2022 (ending March 2022) level. The operating loss widened to ¥262 million (from ¥121 million in the prior period). External factors included a delayed recovery in demand related to industrial machinery amid cautious capital expenditure worldwide, sluggish orders in the Chinese market, and a compounding regulatory change affecting racing parts. With an impairment loss of ¥413 million recorded as an extraordinary loss, net loss for the period expanded sharply to ¥718 million. Unit Products (Stages, Spherical Bearings) was the sole bright spot, growing 16.9% year on year, but this was not enough to offset the declines in Linear Motion Equipment (Linear Ball Bushings, etc.) (down 22.5% year on year) and Precision Parts Processing (Racing Parts, Prototype Parts) (down 49.2% year on year).
Growth Strategy
Three pillars of the growth strategy: expanding the production system for Linear Motion Equipment, selecting and concentrating on high-value-added products, and expanding the unit business
Maximizing the utilization of reinforced production equipment, the company will further expand its production and sales system for Linear Motion Equipment (Linear Ball Bushings, etc.) in response to growing automation needs. Signs of a recovery in demand related to industrial machinery began to emerge in the fourth quarter, and this is positioned as the central pillar of the sales recovery for FY2027 (ending March 2027).
The company is implementing scrap-and-build of low-margin model numbers and advancing the concentration of management resources on high-value-added product lines based on high-precision processing technology. This is a structural reform initiative aimed at stabilizing the profit base and realizing sustainable growth.
The company will continue to benefit from expanding demand for stage products for semiconductor-related equipment and the effect of price increases for spherical bearings, while working to recover orders for racing parts and capture new contract processing through enhanced proposal-based sales. This builds on the achievement in FY2026 (ending March 2026), in which Unit Products (Stages, Spherical Bearings) grew 16.9% year on year.
The company will thoroughly implement price pass-through reflecting the rise in raw material costs and other expenses, reduce production losses, and optimize its staffing structure, thereby lowering the break-even point in a manufacturing business model with a high fixed-cost ratio. This is the core of the profitability improvement measures aimed at resolving the material events regarding going concern.
Last updated: July 19, 2026