Sincere Co., LTD.

Business Details

The core segment of the Group, engaged in the manufacture and sale of contact lenses. Offers daily disposable and two-week replacement clear lenses as well as color contact lenses. Sales are conducted through two channels—the Company's own brand (Sincere S Series, etc.) and private brand products—delivered to end consumers through diverse channels including ophthalmology-affiliated stores, contact lens mass retailers, drugstores, and e-commerce. The color lens business acquired from Furyu Corporation in March 2025 has also been added, expanding the color lens domain.

Recent Overview

Sales rose sharply by 24.7% year on year to ¥1,792 million, but segment profit fell 5.9% due to rising raw material costs.

Contact Lens Business sales in Q1 FY2026 (January to March 2026) were ¥1,792 million (up 24.7% year on year). The main driver of the sales increase was the sales contribution from the color contact lens business acquired in March 2025 (including PB color and third-party products). On the other hand, Company brand clear lenses declined 6.0% due to intensifying price competition with rivals and the shift to PB products at major sales partners. Due to rising raw material costs and other factors, segment profit was ¥183 million (down 5.9% year on year), and the profit margin declined to 10.2% (from 13.5% in the prior-year period).

Key Products

Growth Drivers

• Substantial expansion of color lens sales through the acquisition of the color contact lens business (EC site "Mew Contact") from Furyu Corporation in March 2025
• Expansion of market share for silicone hydrogel lenses (Sincere S Series) in ophthalmology and mass retail channels
• High growth in color lenses such as "Sincere One Day S Cresче" (up 33.6% year on year)
• Strong performance of private brand clear lenses (up 39.1% year on year)
• Expansion of contact lens demand driven by an increasing and increasingly younger myopic population due to smartphone penetration
• Rising purchase price per person due to a shift in demand toward daily disposable lenses and the spread of high-function new material lenses
• Market growth driven by changes in consumer purchasing behavior, including expanded use of e-commerce sales and subscription delivery services
• Capturing inbound demand through drugstore channels

Risks

• Decline in segment profit margin due to rising raw material costs (profit margin of 10.2% in Q1 FY2026, deteriorating from 13.5% in the prior-year period)
• Decrease in Company brand clear lens sales due to intensifying price and promotional competition with competing products in the market
• Risk of declining sales of Company brand products due to the shift to private brand (PB) products at major sales partners
• Risk of rising procurement costs due to yen depreciation (the majority of products are procured from overseas)
• Decrease in domestic contact lens users (mainly younger demographics) due to the declining birthrate and aging population
• Risk of sales concentration in major customers (Palente Co., Ltd., Visionary Holdings Co., Ltd., etc.)
• Post-merger integration (PMI) risk related to integrating the acquired color contact lens business with existing operations
• Increasing costs of quality control and pharmaceutical regulatory compliance as a controlled medical device