SEED CO.,LTD.

Business Details

Develops contact lenses (hard, soft, disposable, and orthokeratology lenses) and care products (preserving solution, cleaning solution, etc.) both domestically and internationally. Domestically, the company focuses on specialty lenses such as astigmatism and multifocal lenses centered on the "SEED 1dayPure Series." Overseas, operations are centered on Asia and Europe. HOYA Corporation, Parente Co., Ltd., and Ad Co., Ltd. are major customers. This is the core business, accounting for approximately 99% of consolidated net sales.

Recent Overview

Both net sales and operating profit increased year on year, but domestic single-vision lenses remained sluggish due to price competition.

In FY2026 (ending March 2026), segment net sales were ¥33,849 million (up 2.2% year on year), and operating profit was ¥3,469 million (up 8.5% year on year). Orthokeratology lenses were a key driver, growing 11.6% year on year. Overseas exports grew 5.3% year on year, driven by growth in Vietnam and Malaysia. On the other hand, domestic single-vision lenses stagnated due to price competition with rivals, and the Chinese market remained sluggish. Building No. 4 at the Konosu Research Institute began operations in March 2026. Scotlens Holdings Limited (UK) and Shanghai Huanying Trading Co., Ltd. (China) were newly consolidated, expanding goodwill balance to ¥1,068 million (provisional figure).

Key Products

Growth Drivers

• Expansion of the wearer population due to earlier onset of myopia among younger people and an aging population, along with growing demand for specialty lenses (astigmatism and multifocal)
• Continued high growth in orthokeratology lenses (up 11.6% year on year in FY2026, ending March 2026) and expansion of participating facilities and flat-rate subscription services
• Phased increase in maximum monthly production capacity following the start of operations at Building No. 4 of the Konosu Research Institute (March 2026), from 65 million units to 79 million units (FY2027, ending March 2027) to 89.5 million units (FY2028, ending March 2028)
• Expansion of overseas product coverage and sales routes through the new consolidation of Scotlens Holdings Limited (UK) and Shanghai Huanying Trading Co., Ltd. (China)
• Expansion of the astigmatism lineup for silicone hydrogel lenses (AirGrade Series), with advance sales planned for FY2027 (ending March 2027) and nationwide launch planned for FY2028 (ending March 2028)
• Capturing growth in emerging markets such as Southeast Asia (Malaysia, Vietnam) and India, and establishing a logistics hub in Singapore
• Rebuilding brand value through rebranding of the "SEED 1dayPure Series" and strengthening differentiation messaging around domestic manufacturing and 32-lens packs
• Faster decision-making and sales expansion in the Chinese market through full subsidiary conversion and establishment of a new China sales department

Risks

• Continued sales sluggishness due to the economic slowdown in the Chinese market (China sales declined year on year again in FY2026, ending March 2026)
• Risk of startup costs and reduced production efficiency associated with the expansion of production facilities (Building No. 4 and new lines)
• Cost pressure from rising personnel expenses and increased import costs due to yen depreciation (selling, general and administrative expenses increased by ¥716 million year on year)
• Declining profitability of domestic single-vision lenses and other products due to increased competing products and intensifying price competition
• Impact on overseas demand from global economic uncertainty, including US tariff policy and geopolitical risks
• Future impairment risk associated with unfinished purchase price allocation for goodwill (total of ¥1,068 million, provisional figure) from newly consolidated subsidiaries (Scotlens and Shanghai Huanying)
• Burden of addressing capital cost and stock price-conscious management associated with the transfer from the TSE Prime Market to the Standard Market (effective March 31, 2026)