ENDO MANUFACTURING CO.,LTD.
7841・Standard Market・Other Products
Business
Endo Manufacturing Co., Ltd. is a metal products processing manufacturer founded in 1950 and headquartered in Tsubame City, Niigata Prefecture. Built on forging and plastic working technology as its core, the company consists of two segments: the Fine Process Business (net sales of ¥8,552 million), which handles Golf Club Heads, Medical Device Components (Artificial Joints, etc.), and Aircraft Components; and the Metal Business (net sales of ¥9,685 million), which handles Metal Sleeve (Ultra-thin Stainless Steel Tube), Forged Components (Automobiles, Motorcycles, Agricultural Machinery), and precision die forging in general. Most products are OEM production, with major domestic companies such as Sumitomo Rubber Industries and IHI as key customers. The company has multiple manufacturing subsidiaries in Thailand, and in February 2025 made Nichia Tanko Co., Ltd. a subsidiary, expanding its business domain into the fields of construction machinery and power generation turbine blades.
Business Model
The Group generates revenue by providing advanced metal processing technologies—forging, machining, grinding, and more—primarily through OEM production under customer brands. It employs a global division-of-labor structure in which planning, development, and manufacturing technology development are handled domestically (head office in Tsubame City and Nichia Tanko), while cost-competitive manufacturing is carried out at three sites in Thailand (ENDO THAI, ENDO FORGING, and ENDO METAL SLEEVE). The Group invests ¥304 million in R&D expenses, driving product differentiation and new order acquisition through proposal-based development.
Company Strengths
Since beginning Golf Club Heads production in 1968, the company has accumulated forging, machining, and polishing technologies. By horizontally expanding these technologies from golf into medical devices (artificial joints) and aircraft components, it has achieved an operating margin of 11.1% in the Fine Process Business. The multi-purpose deployment of technology is contributing to the diversification of its revenue base.
The company operates ENDO THAI, ENDO FORGING, and ENDO METAL SLEEVE in Thailand, building a cost-competitive manufacturing structure. Of the Metal Business's net sales of ¥9,685 million in FY2025 (ending March 2025), the majority of forging and metal sleeve production is handled by the Thailand sites, establishing a division-of-labor model of domestic development and overseas manufacturing.
In February 2025, the company made Nichia Tekko Co., Ltd. a subsidiary, entering the field of Large Forged Components such as those used in construction machinery and power generation turbine blades. With total net assets of ¥23,297 million against total liabilities of ¥4,678 million, the company maintains high financial soundness and retains capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has maintained a consistent growth trend, rising from ¥12,590 million (FY2021) to ¥18,237 million (FY2025). In the first quarter of FY2026 (ending December 2026), revenue growth continued, reaching ¥4,991 million (up 8.7% year-on-year). On the other hand, operating profit peaked at ¥1,838 million in FY2021 and has since declined to ¥1,027 million in FY2025, as rising raw material and transportation costs, along with a weaker yen pushing up procurement costs, have pressured profit margins. The year-on-year decline in ordinary profit and net profit in the first quarter of FY2026 (ending December 2026) was mainly due to the drop-off of the prior year's subsidy income (non-operating income), while operating profit actually increased by 4.4% year-on-year. The full-year earnings forecast (revenue of ¥21,000 million, operating profit of ¥1,150 million) remains unchanged. Downside risks from external factors include rising crude oil prices and transportation costs stemming from the situation in the Middle East, and a potential decline in demand for Metal Sleeve (Ultra-thin Stainless Steel Tube) due to U.S. tariff policy.
Growth Strategy
Aiming for ROE of 5% or higher through three themes: business portfolio restructuring, strengthening the management foundation, and improving capital efficiency
Promoting expanded shipments in the golf, medical device, and aircraft fields. In Q1 of FY2026 (ending December 2026), the golf, medical, and aircraft fields performed solidly, achieving a 27.1% increase in Fine Process Business sales. Capital investment aimed at securing new orders (construction in progress of ¥1,257 million) is also continuing.
Affected by US tariffs and restructuring among business partners in the Metal Sleeve field, the company is promoting the acquisition of orders in new fields such as agricultural machinery and motorcycles, as well as expansion into the Large Forged Components field utilizing Nichia Tanko. In Q1 of FY2026 (ending December 2026), the impact of declining orders has become apparent, and recovery in the second half is a challenge.
Continuing to reduce costs through enhanced production capacity and improved production efficiency. SG&A expenses in Q1 of FY2026 (ending December 2026) were reduced to ¥506 million from ¥541 million in the same period of the previous year. The company continues its policy of responding to cost pressures from factors such as foreign exchange rates and rising crude oil prices through internal efficiency improvements.
Working on both profit growth and capital policy to achieve the ROE target of 5% or higher. ROE for FY2025 remained significantly below target at 2.6%. If the full-year net profit forecast of ¥1,000 million for FY2026 (ending December 2026) (up 66.4% year on year) is achieved, this will move in an improving direction, but further profit expansion is needed to reach the target.
Last updated: July 17, 2026