EIKEN INDUSTRIES CO.,LTD.
7265・Standard Market・Transportation Equipment
Business
Eiken Kogyo Co., Ltd. is a listed manufacturer (TSE Standard Market) founded in 1969 and headquartered in Omaezaki City, Shizuoka Prefecture, with its core business centered on the manufacture and sale of Automotive Replacement Oil Filters. The company's operations consist of two segments: the Filter Division (approximately 96% of net sales) and the Combustion Equipment Division (approximately 4%). In the Filter Division, the company sells replacement oil filters, air filters, and other products under its own brand "VIC" both domestically and overseas. In the Combustion Equipment Division, it supplies burner parts and Heat Exchangers for kitchen equipment and boilers. While maintaining an integrated domestic production system, the company also expands into export markets, primarily in Asia. Its affiliated company, Fujipack Co., Ltd., manufactures and sells packaging materials, forming a two-company group structure overall.
Business Model
The company adopts a made-to-forecast production system and manufactures automotive replacement filters through an integrated process at its own factory (Omaezaki City, Shizuoka Prefecture). Domestically, it maintains a wide sales network targeting trading companies and industry peers, with its largest customer, Union Motor Co., Ltd., accounting for 45.1% of net sales. For exports, the company leverages the "VIC" brand to sell into the replacement parts markets for Japanese vehicles in Asia, the Middle East, and other regions. The business structure is such that increased production volume directly leads to improved profit margins through fixed-cost absorption effects.
Company Strengths
The company has continuously sold products under the "VIC" brand for many years in overseas replacement markets for Japanese vehicles. In the 57th fiscal period, exports to Asia increased, contributing to the expansion of export sales in the Filter Division. Leveraging its brand strength, the company has been conducting proposal-based sales activities and is also working to develop new countries beyond its main export destinations.
The company carries out integrated production of automotive filters at its head office plant in Omaezaki City, Shizuoka Prefecture, and has built a system capable of accommodating high-mix, low-volume production. Total capital expenditure in the 57th fiscal period was ¥311 million, of which ¥299 million was invested in the Filter Division for machinery renewal and mold production aimed at improving work efficiency and quality.
As of the end of the 57th fiscal period, net assets stood at ¥6,055 million, and the equity ratio against total assets of ¥7,782 million was approximately 77.8%, a high level. The company's basic policy for fundraising is to rely on internal funds, and operating cash flow in the 57th fiscal period secured ¥762 million. This near debt-free financial structure supports stable, ongoing capital expenditure and dividends.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years bottomed out at ¥6,797 million in FY2023 and recovered to ¥8,100 million in FY2025, while operating profit improved from ¥116 million in FY2023 to ¥411 million in FY2025. However, in the first half of FY2026 (November 2025 to April 2026), delays in the procurement of petrochemical products caused by the closure of the Strait of Hormuz due to the Middle East situation caused production volumes to fall short of plan, resulting in a sharp deterioration with revenue of ¥3,889 million (down 4.4% year-on-year) and operating profit of ¥102 million (down 58.9% year-on-year). The main cause was a rise in the cost of sales ratio due to an increased fixed cost burden accompanying the decline in production volume. The full-year forecast remains unchanged at revenue of ¥8,351 million (up 3.1% year-on-year) and operating profit of ¥408 million (down 0.7% year-on-year), but this assumes a substantial recovery in the second half, and the certainty of achieving this has declined.
Growth Strategy
Four-pillar strategy: export recovery, shift to domestic high-value-added products, development of the Combustion Equipment Division, and cultivation of new businesses
Leveraging the "VIC" brand to propose new products to major export destinations and expand sales channels beyond them. In the first half of FY2026 (ending March 2026), exports to Asia declined, with export sales of ¥1,838 million (down 13.9% year on year), reflecting continued difficulty; normalization of petrochemical product procurement is a precondition for recovery.
Focusing on expanding sales of Large Vehicle Filters, High-Performance Oil Filters differentiated from existing products, and Press Parts. In the first half of FY2026 (ending March 2026), domestic sales increased, with expansion in sales to fellow manufacturers and trading companies, showing certain results in the shift toward high-value-added products.
Capturing increased demand for Coin Laundry Burners while promoting development of new burners at clients' request, expanding sales of the Heat Exchanger, and developing new business partners. In the first half of FY2026 (ending March 2026), sales reached ¥166 million (up 7.7% year on year) and operating profit reached ¥14 million (up 35.4% year on year), achieving both revenue and profit growth, with steady progress.
Trialing sales in new categories such as Garage Sauna and Ashtrays, etc. In the first half of FY2026 (ending March 2026), sales were ¥1,091 thousand (up 14.8% year on year), a slight increase but still extremely small in scale. Due to reduced R&D expenses, the operating loss narrowed to ¥(1,958) thousand (compared to ¥(2,980) thousand in the same period of the previous year); the business is being carefully cultivated while prioritizing cost control.
Last updated: July 17, 2026