TEIN, INC.
7217・Standard Market・Transportation Equipment
Business
Tein Inc. is a manufacturer specializing in suspensions for the car aftermarket, founded in 1985 and listed on the Standard Market of the Tokyo Stock Exchange. The company operates the Automotive Suspension Manufacturing & Sales Business as its single business segment, engaging in the development, manufacturing, and sales of automotive suspension products, with production facilities at its domestic factory (Totsuka Ward, Yokohama City) and its China factory (Jiangsu Province). In addition to sales through domestic retailers, the company has built a global structure with eight subsidiaries spanning North America, Europe, China, Thailand, Oceania, and other regions. Its main customers are sport and repair users in the car aftermarket, with key business partners including TURN 14 DISTRIBUTION INC. (North America) and Takama Competition Product Co., Ltd. (domestic). As a long-term management vision, the company has set a target of ¥10 billion in sales for the suspension business.
Business Model
Sports and high value-added products are manufactured at the domestic factory, while products for entry-level users are manufactured at the China factory, achieving cost optimization through this domestic-overseas division of roles. Sales are conducted via an indirect sales model through domestic retailers and overseas subsidiaries, with sales offices in North America, Europe, Asia, and Oceania. The company adopts a make-to-stock production method, maintaining inventory to ensure a rapid supply system and enhance customer satisfaction. Under management indicators that emphasize ROA, the company pursues the maximization of asset efficiency.
Company Strengths
The company has established a system of direct sales bases in key markets through eight consolidated subsidiaries: North America (TEIN U.S.A., INC.), Europe (TEIN UK LIMITED, TEIN Europe Sp. z o.o.), China/Hong Kong (Tianyu Far East International Trade (Beijing) Co., Ltd.), Thailand (TEIN Sales (Thailand) Co., Ltd.), and Oceania (TEIN AUSTRALIA PTY LTD). Sales in Asia/Oceania grew 17.9% year on year to ¥1,270 million.
Sports and high-value-added products are manufactured at the domestic headquarters plant in Totsuka-ku, Yokohama, while entry-user products are manufactured at the plant in Jiangsu Province, China, achieving optimization of the product lineup and production costs. Flexible use of production sites, such as the transfer of production of products for the U.S. market from the China plant to the Japan headquarters plant to improve the gross profit margin, is contributing to profitability improvement.
The company utilizes feedback from cutting-edge motorsport fields in product development, offering a diverse lineup including height-adjustable sports shock absorbers, the EnduraPro and EnduraPro Basic Series (for the repair market), and 4x4DAMPER (for off-road use). R&D expenses for the fiscal year under review amounted to ¥219 million, maintaining a continuous product development system.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥4,866 million in FY2024 (ended March 2024) and has increased for two consecutive periods, reaching ¥5,594 million in FY2026 (ending March 2026), up 4.7% year on year. Sales to Japan and Thailand performed well, with sales to Asia/Oceania increasing 17.9% year on year, driving overall growth. Meanwhile, the China region saw sluggish growth due to the impact of economic stagnation. Operating profit was ¥334 million, down 3.4% year on year, but ordinary profit rose to ¥456 million (up 16.5% year on year) and net income for the period increased significantly to ¥336 million (up 36.0% year on year), driven by expansion in non-operating income such as equity-method investment profit (¥42 million) and foreign exchange gains (¥33 million). The gross profit margin improvement effect from the production transfer for U.S.-bound products is gradually becoming apparent, and operating profit for FY2027 (ending March 2027) is forecast at ¥487 million, up 45.8% year on year.
Growth Strategy
Aiming to improve profitability through the expansion of the global sales network, strengthening of high-value-added products, and promotion of in-house production
Establish multiple joint venture sales companies with local partners across Asia to secure multi-model inventory for the "EnduraPro" Series and other products and build a speedy supply system. Form a foundation for medium- to long-term sales expansion through improved brand recognition and the establishment of locally-focused sales systems.
Advance the acquisition of factory land for TEIN Manufacturing (Thailand), Co., Ltd., which became a newly consolidated subsidiary in FY2026 (ending March 2026) (already recorded as an asset as advance payment), to strengthen the supply system for Asia and optimize production costs.
In light of US tariff policy toward China, a portion of production of US-bound products has been transferred from the China factory to the Japan head office factory. The effect of improved gross profit margin has already become apparent in FY2026 (ending March 2026), and the company will continue to build a business structure resilient to changes in the external environment.
Continue to strengthen appeal of the "EnduraPro" Series for the repair market and expand the lineup of the "4x4DAMPER", which is in high demand in overseas markets. Aim to boost sales by generating new demand and retaining existing customers.
Aim to improve brand recognition and expand sales opportunities through active participation in exhibitions and test-drive events in each region. This is one of the key measures toward achieving the projected net sales of ¥6,299 million (up 12.6% year on year) for FY2027 (ending March 2027).
Last updated: July 19, 2026