Nihon Seimitsu Co., Ltd.
7771・Standard Market・Precision Instruments
Business
Nippon Seimitsu Co., Ltd., founded in 1978 and headquartered in Kawaguchi City, Saitama Prefecture, is a precision parts manufacturer listed on the TSE Standard Market. The company's business consists of three segments—"Watch-related," "Eyeglass frames," and "Fishing tackle & applied products"—with Watch-related accounting for approximately 74% of net sales of ¥7,896 million (FY2026, ending March 2026). Its major customer is the Casio Computer Co., Ltd. group, with sales to that group reaching approximately 71% of total net sales. Manufacturing is handled by two ASEAN production bases in Vietnam and Cambodia, which maintain an integrated production system covering everything from mold design to surface treatment. In eyeglass frames, subsidiary Murai Co., Ltd. purchases and sells products for brands such as agnès b., while fishing tackle parts are manufactured and sold through the ASEAN bases.
Business Model
The Japanese head office centrally handles planning, development, sales, and administration, while adopting a two-tier structure in which the Vietnam factory (the core of high value-added production and quality control) and the Cambodia factory (mass production and cost competitiveness) share manufacturing responsibilities. Products are primarily sold directly to domestic watch and fishing tackle manufacturers, and are also supplied to overseas customers via the Hong Kong branch. Eyeglass frames follow a buy-and-sell model, aiming for differentiation through the use of brand licensing. The structure is designed to improve profitability through two pillars: reducing manufacturing costs and expanding orders through proposal-based sales.
Company Strengths
The company began manufacturing watch bands for Casio Computer Co., Ltd. in September 1978, the month after its founding. Sales to the group in FY2026 (ending March 2026) totaled ¥5,621,957 million (Casio Computer Co., Ltd. ¥3,397 million + CASIO COMPUTER (HK) ¥2,225 million), accounting for approximately 71% of total sales. Compared to the previous period, domestic sales expanded by 22%, and the long-standing track record of transactions supports the stability of the order base.
The Vietnam plant functions as a high-value-added core base capable of integrated production from mold design and manufacturing through pressing, polishing, and surface treatment (IP processing, DLC treatment, etc.). The Cambodia plant is being developed step by step as a mass-production and cost-competitiveness base, with production being gradually transferred there. Capital expenditures in FY2026 (ending March 2026) were mainly for the acquisition of machinery and equipment at the Cambodia plant, totaling ¥30,135 million. The company has also built a system capable of capturing NEXT CHINA demand.
In FY2026 (ending March 2026), segment profit was secured across three businesses: ¥174 million for Watch-related, ¥192 million for Fishing tackle & applied products, and ¥15 million for Eyeglass frames. Fishing tackle & applied products showed high profitability, with a segment profit margin of 16.5% against sales of ¥1,163 million. This diversified structure, which avoids dependence on a single business, mitigates to some degree the risk of order fluctuations in the Watch-related segment.
ENVALITH's Perspective
Performance Trend
Revenue expanded 37.6% over five years, from ¥5,740 million in FY2022 to ¥7,896 million in FY2026, with the current fiscal year achieving revenue growth of +10.3% year-on-year. Operating income continued to improve, reaching ¥375 million (+36.0% year-on-year), with the operating margin rising to 4.7% (from 3.9% in the previous fiscal year). Ordinary income hit a record high of ¥533 million, driven by the recognition of ¥227 million in foreign exchange gains. Net income for the current fiscal year also turned positive at ¥350 million. However, the forecast for the next fiscal year anticipates a significant profit decline, with revenue of ¥7,652 million (△3.1%), operating income of ¥317 million (△15.5%), and ordinary income of ¥232 million (△56.5%). Changes in the foreign exchange environment as an external factor, along with order trends from overseas watch business partners, are expected to be the key drivers of performance fluctuations.
Growth Strategy
Continued pursuit of the three pillars: maintaining and expanding the existing three businesses, strengthening ASEAN production bases, and expanding the financial base
In Watch-related, orders from domestic customers recovered (watch bands up approximately 18%, exterior parts up approximately 14%). Fishing tackle & applied products remained solid, with order volume up +12.2% year on year. On the other hand, securing new orders from overseas watch customers remains difficult, and Eyeglass frames excluding major brands declined 25.2%, leaving challenges. The Company aims for a recovery to ¥900 million in Eyeglass frames in the next fiscal year.
Continued expansion of production capacity at the Vietnam and Cambodia bases. Production volume for the fiscal year increased +16.2% year on year in Watch-related and +13.4% in Fishing tackle & applied products, achieving increased output. NISSEY VIETNAM CO.,LTD. incurred an increased corporate tax burden (including prior-period corporate taxes, etc.), making tax cost management a challenge.
On March 31, 2026, the Company raised ¥200 million through a third-party allotment of new shares, and applied it to the early repayment of ¥200 million of the syndicated loan. The equity ratio improved from 26.1% to 33.9%, and net assets expanded to ¥2,038 million. There was no breach of the financial covenants. Resolving the accumulated deficit of ¥(1,792) million remains the next challenge.
Last updated: July 19, 2026