SHOEI CO., LTD.
7839・Prime Market・Other Products
Business
SHOEI Co., Ltd. has been engaged in the manufacture and sale of Motorcycle Helmets (Premium Helmets) since 1960, and currently operates a single business focused on high-quality, high-value-added premium helmets. Motorcycle Helmets (Premium Helmets) account for approximately 90% of net sales, and the company maintains a Made-in-Japan integrated production system at its two domestic plants (Ibaraki and Iwate). It has seven consolidated subsidiaries across Europe, North America, and Asia, and maintains the No.1 market share position in the world's major markets. Its main customers are premium helmet purchasers (individual riders) and distribution agents, and it boasts high brand recognition through a brand strategy utilizing contracted MotoGP riders.
Business Model
Just-in-time production at two domestic plants achieves both quality and cost efficiency, with products supplied through agents and sales subsidiaries in Japan, the West, and Asia. Brand premium is maintained through unit price increases via price hikes, graphic models, and collaboration products, along with close customer engagement through the Personal Fitting System (PFS). In the fiscal year ended September 2025, the gross profit margin reached 46.4%, and the company continues to return profits to shareholders with a consolidated dividend payout ratio target of 50%, while maintaining a debt-free management structure and a high equity ratio.
Company Strengths
Backed by a brand built over more than 60 years of history, the company maintains the No.1 share position in most countries worldwide. It continues to appeal to its brand through sponsorship contracts with MotoGP riders Marc Márquez and Álex Márquez, and operates six showrooms in Japan as well as SHOEI Gallery locations in Paris and Barcelona.
Achieved a gross profit margin of 46.4% and ROE of 20.5% in FY2025 (ended September 2025). The company maintains debt-free management, funding all capital expenditures and R&D from internal resources, and cash and cash equivalents at the end of the fiscal year under review reached ¥19,942 million (up 29.9% year on year). Total net assets stood at ¥32,236 million, reflecting a high degree of financial independence.
The company completes the entire process—molding, product development, quality assurance, and production—at two domestic plants, achieving both cost reduction and quality improvement through just-in-time-based improvement activities. It has built entry barriers against imitation by competitors by keeping its intellectual property, comprising 227 granted patents and 85 pending applications, as black-boxed know-how.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, revenue expanded from ¥23,753 million in FY2021 to ¥35,791 million in FY2024, but FY2025 saw a reversal with revenue and profit declining to ¥32,364 million. For FY2026 (ending September 2026), full-year revenue is forecast at ¥33,950 million (+4.9% year on year) and operating profit at ¥8,370 million (+5.9% year on year). Interim results showed revenue of ¥15,002 million (+3.0% year on year) and operating profit of ¥4,430 million (+1.3% year on year), securing growth in both revenue and profit. As an external factor, the weaker yen (the euro appreciated by ¥20.55 year on year) pushed up unit prices, offsetting a decline in sales volume (-2.3%). It should be noted that an increase in selling, general and administrative expenses (up ¥351 million year on year) constrained the growth in operating profit.
Growth Strategy
Expanding brand value and profit base through sales expansion in China and Asia, new model launches, and enhanced shareholder returns
As a result of thorough execution of brand strategy in the China market, sales volume in China increased 71.1% year-on-year in the first half of FY2026 (ending March 2026), while overall Asia sales volume grew 50.6%. XIAMEN CHUANGJIAN has emerged as a major sales channel, expanding to 10.8% of sales composition. Continued sales expansion in China and Southeast Asia will remain the core driver of volume growth.
The company continues to enhance added value through the global rollout of the J-Cruise3, new model launches such as the X-Fifteen Carbon, and graphic models and collaboration helmets. This strategy of maintaining sales and profit through unit price increases even when sales volume growth is sluggish has functioned effectively in the first half of FY2026 (ending March 2026) as well.
Based on a Board of Directors resolution in November 2025, 1,395,100 shares were acquired and retired on April 10, 2026 (52,318,616 shares issued after retirement). While maintaining an annual dividend forecast of ¥60, the company is implementing a comprehensive shareholder return policy combining treasury stock acquisition and retirement, aiming to enhance shareholder value through improved earnings per share.
Amid continued weak demand in Europe (sales volume down 8.7% in the first half) and Japan (down 15.8% in the first half), the order backlog at the end of the first half stood at ¥8,147 million (up 28.1% year-on-year), providing high visibility for second-half sales. There is room for volume recovery should adverse weather conditions and economic uncertainty in Europe subside.
Last updated: July 17, 2026