ENVALITH
永大化工株式会社 logo

EIDAI KAKO CO.,LTD.

7877・Standard Market・Chemicals

Official website
永大化工株式会社 logo
EIDAI KAKO CO.,LTD.7877

Business

Eidai Kako Co., Ltd., founded in 1949, is a synthetic resin products manufacturer listed on the TSE Standard Market. Based on its irregular-shaped extrusion molding technology, the company operates two business segments: Automotive Products (OEM genuine floor mats) and Industrial Materials (air conditioner ducts, sewerage repair materials, residential interior materials, etc.). Major customers include Honda Access (18.5% of net sales) and Suzuki (17.5% of net sales), among other major automaker-affiliated companies. In addition to multiple domestic factories, the company has two production and sales subsidiaries in Vietnam, giving it cost competitiveness through the use of both domestic and overseas production sites. Consolidated net sales for FY2026 (ending March 2026) were ¥9,220 million.

Business Model

The company's earnings are structured around two pillars: Automotive Products (66% of sales), which secures stable orders by being adopted as OEM genuine floor mats by automakers, and Industrial Materials (34% of sales), which supplies a wide variety of synthetic resin products for housing, public infrastructure, and home appliances. Profit margins are managed through a combination of optimal allocation between overseas production utilizing its Vietnam base and domestic production, reduction of outsourcing costs through in-house production promotion, and appropriate pricing (cost pass-through).

Company Strengths

The company's floor mats are adopted as OEM genuine products by major domestic and overseas automakers, with Honda Access and Suzuki alone accounting for 36% of net sales in FY2026 (ending March 2026). The positioning as an OEM genuine product secures continuous order intake and underpins pricing power.

The company has two subsidiaries, Eidai Kako Vietnam Co., Ltd. (established 1995) and Eidai Kako Trading Vietnam Co., Ltd. (established 2021), achieving both business continuity planning through diversified domestic and overseas production sites and cost competitiveness. It has also continued to reduce outsourcing costs through in-house production initiatives, and operating profit for FY2026 (ending March 2026) increased 64.1% year on year to ¥477 million.

Since its founding in 1949, the company has built a track record of applying profile extrusion molding as its core technology across a wide range of industrial fields, including housing and building materials, home appliance components, automotive products, and semiconductor-related parts. In FY2026 (ending March 2026), it invested ¥125 million in R&D (¥82 million for automotive products and ¥42 million for industrial materials), continuing development of new products such as sustainability-oriented "mono-material floor mats."

ENVALITH's Perspective

Against net sales of ¥9,220 million (up 4.1% year on year), operating profit rose to ¥477 million (up 64.1% year on year) and net income to ¥334 million (up 80.3% year on year), with profit growth substantially outpacing sales growth. The gross profit margin improved from 21.7% in the previous period to 23.8% in the current period, confirming the combined effect of selling price optimization, raw material review, and in-house production. Profit has recovered and expanded for three consecutive periods since falling into a loss in FY2023 (ended March 2023), indicating progress in structural profitability improvement.

In FY2026 (ending March 2026), sales to major customers were Honda Access at ¥1,703 million, Suzuki at ¥1,616 million, and Marubeni Plax at ¥905 million, totaling ¥4,224 million and accounting for approximately 45.8% of consolidated net sales. In the Automotive Products segment, the impact of reduced production for some adopted vehicle models has already become apparent, and dependence on specific customers and specific vehicle models poses a risk of earnings volatility. A deterioration in sentiment in the automobile industry due to U.S. tariffs under the Trump administration is an external factor that could affect future order trends.

The consolidated earnings forecast for FY2027 (ending March 2027) calls for net sales of ¥9,500 million (up 3.0% year on year), operating profit of ¥500 million (up 4.8% year on year), and net income of ¥350 million (up 4.8% year on year), representing modest profit growth. However, uncertainty from external factors is high, including a sharp rise in energy prices due to instability in the Middle East, higher import costs stemming from prolonged yen depreciation, and downward pressure on business sentiment from U.S. tariffs, which could hinder the continuation of margin improvement through renewed increases in raw material and manufacturing costs. With an equity ratio of 73.2% and cash of ¥2,850 million, the financial base is sound, providing resilience against downside risk.

Growth Strategy

Cost improvement through price pass-through and in-house production, combined with enhanced OEM added value and expansion of industrial materials, driving earnings growth

Continue optimizing sales prices in response to the prolonged yen depreciation and rising raw material costs, advancing the pass-through of increased manufacturing costs. In FY2026 (ending March 2026), the gross profit margin improved by approximately 2 percentage points year on year, reflecting the effects of these measures in the numbers.

Continue efforts to reduce outsourcing costs by switching outsourced processes to in-house production. This has contributed to the improvement in operating margin to 5.2% in FY2026 (ending March 2026) (from 3.3% in the previous fiscal year), and is being continuously implemented as a measure leading to permanent improvement in the cost structure.

Optimize the allocation of production between the Vietnam site and domestic sites to reduce manufacturing costs. In FY2026 (ending March 2026), capital expenditure for property, plant and equipment continued at ¥154 million, aiming to maintain and update production capacity.

Capture the increase in room air conditioner shipments driven by the strengthening of the Ministry of Economy, Trade and Industry's energy efficiency standards for air conditioners in FY2027, as well as steady orders for repair materials for public works projects arising from aging sewerage infrastructure, to improve the profit margin of the Industrial Materials segment. Segment profit in FY2026 (ending March 2026) improved significantly to ¥46 million (from ¥17 million in the previous fiscal year).

Last updated: July 19, 2026