KOKEN LTD.
7963・Standard Market・Other Products
Business
Koken Ltd. operates in the business domains of "Clean, Health, Safety," and is a manufacturing and sales company whose core businesses are occupational safety and health protective equipment such as dust masks and gas masks (Mask-related Business), and the Open Clean System "KOACH" for the semiconductor market (Environment-related Business). Founded in 1943, the company is listed on the Standard Market of the Tokyo Stock Exchange. Its major customers include manufacturing industries, public works, medical institutions, the Ministry of Defense (Self-Defense Forces), and semiconductor manufacturers. The company has a consolidated subsidiary, SIAM KOKEN LTD., in the Kingdom of Thailand, and conducts production and logistics operations across multiple domestic sites (techno-yards and distribution centers). Consolidated net sales for FY2025 reached ¥11,857 million, marking a record high for the second consecutive fiscal year.
Business Model
The Mask-related Business (approx. 80.6% of sales composition) serves as a stable revenue base, while the Environment-related Business (approx. 16.4%) functions as a high-growth engine, forming a two-pillar structure. The company adopts a build-to-forecast production system, combining direct sales and distributor sales through sales agents (Midori Anzen Yohin, etc.), the Ministry of Defense, medical institutions, and others. It continues to invest ¥762 million in R&D expenses (approx. 6.4% of sales), maintaining a market-creating competitive advantage by developing "products that don't exist in the world" ahead of the market.
Company Strengths
Sales to the Ministry of Defense increased 34.3% year on year, from ¥1,180 million in the previous period to ¥1,584 million in the current period, with its share of consolidated net sales rising from 11.0% to 13.4%. Demand for Protective Masks for the Self-Defense Forces continues to expand against the backdrop of increasing defense spending, securing stable government demand that has exceeded the prior-year results for three consecutive periods.
Sales of the Environment-related Business, centered on the Open Clean System "KOACH," reached a record-high ¥1,939 million (up 82.3% year on year). The company's proprietary technology, which achieves ISO Class 1 clean space, matched the semiconductor market's demand for higher quality, driving a significant increase in unit sales of the large-scale "Floor Coach" model alongside steady growth in medium- and small-scale models.
R&D expenses for the current period totaled ¥762 million (approximately 6.4% of net sales), with 68 personnel assigned to R&D. Utilizing proprietary frameworks such as a matrix-style development structure, a meister system, and monthly research presentation meetings, the company newly launched during the current period the "KOACH Duet," the world's first system to achieve both ISO Class 1 and chemical-free operation, as well as an absorption canister for G-PAPR with a detoxification capacity of 145 minutes or more.
ENVALITH's Perspective
Performance Trend
Revenue expanded for five consecutive periods from ¥10,203 million in FY2021 to ¥11,857 million in FY2025, marking a new record high in FY2025. However, in Q1 of FY2026 (ending December 2026), revenue turned slightly negative at ¥2,819 million (down 0.4% year on year), with operating profit of ¥249 million (down 31.6%) and quarterly net profit of ¥143 million (down 45.0%), representing a substantial decline in earnings. As an external factor, escalating tensions in the Middle East pushed up energy prices and disrupted logistics, raising raw material costs and causing gross profit margin to fall from 47.8% in the same quarter of the previous year to 44.6%. In addition, the Environment-related Business saw revenue plunge 59.1% year on year due to the reaction from the completion of a large-scale project delivery in the previous period. The full-year forecast (revenue of ¥12,200 million, operating profit of ¥1,220 million) remains unchanged, with recovery in the Environment-related Business and cost stabilization in the second half serving as key factors.
Growth Strategy
Overseas expansion of the Environment-related Business to establish it as a second pillar, combined with growth in the Mask-related Business through capture of demand from government agencies and defense-related needs
Development of small, medium, and large models compliant with overseas standards has been completed, and preparations for sales are in place. The overseas product lineup was announced on March 9, 2026. The company targets the semiconductor market, whose scale is expanding both domestically and overseas, as a key focus, aiming to generate overseas sales.
Property information and consultation cases are accumulating at a pace exceeding last year's, resulting in a robust order pipeline. Deliveries of large-scale models are expected to be concentrated from the second quarter onward, forming a structure in which performance expands toward the second half. Medium and small models are maintaining progress roughly in line with previous years.
Deliveries of protective masks to government agencies exceeded the results of the same quarter of the previous year, with demand related to defense continuing to expand. Industrial masks have also remained strong, supported by demand for infrastructure development related to public works projects, and net sales for the Mask-related Business as a whole increased a solid 10.5% year on year for the same quarter.
Last updated: July 17, 2026