ENVALITH
株式会社バルカー logo

VALQUA,LTD.

7995・Prime Market・Chemicals

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株式会社バルカー logo
VALQUA,LTD.7995

Business

Valqua, Ltd. was founded in 1927 and changed to its current company name in 2018; it is a Tokyo Stock Exchange Prime Market-listed manufacturer of industrial sealing products and functional resin products. The Sealing Products Business supplies gaskets, packings, Elastomer Products and other items to semiconductor manufacturing equipment, plant, and automotive markets, while the Functional Resin Products Business offers Fluororesin Processed Products, lining tanks and other items to advanced industries and chemical plant markets. In addition to domestic manufacturing subsidiaries, the company has manufacturing and sales bases in the United States, Taiwan, Vietnam, Thailand, Singapore, South Korea and elsewhere, forming a global supply chain. Consolidated net sales for FY2026 (ending March 2026) were ¥58,556 million.

Business Model

The core earnings pillars are the manufacturing and sales operations of the mainstay Sealing Products Business (net sales of ¥43,858 million) and the Functional Resin Products Business (net sales of ¥14,697 million). High-function products manufactured at domestic and overseas manufacturing subsidiaries are supplied to customers in the semiconductor, plant, and automotive sectors, among others, via a global sales network. In addition, the company is promoting monetization of sealing engineering services for plants and AI/IT digital solutions, aiming to cultivate value-added revenue sources that are not dependent on product sales alone.

Company Strengths

In Elastomer Products and Fluororesin Products, the company is globally rolling out spec-in activities for products used in next-generation semiconductor manufacturing equipment. In FY2026 (ending March 2026), the Sealing Products Business posted net sales of ¥43,858 million (up 7.1% year on year) and segment profit of ¥6,605 million (up 35.2% year on year), demonstrating high profitability, with the figures reflecting the company's technological edge in the advanced industries market.

The company operates manufacturing and sales subsidiaries in the United States, Taiwan, Vietnam, Thailand, Singapore, and South Korea. In FY2026 (ending March 2026), it established VALQUA ADVANCED VIETNAM CO., LTD. through a incorporation-type company split to build a new plant in Vietnam, expanding its production capacity. Order intake reached ¥60,334 million and the order backlog stood at ¥12,810 million (up 16.1% year on year), with orders on hand accumulating, confirming the effectiveness of its global supply system.

In 1952, the company achieved Japan's first commercialization of fluororesin products, and has since accumulated sealing technology and fluororesin processing technology over many years. In FY2026 (ending March 2026), it invested ¥1,394 million in research and development (¥1,072 million for the Sealing Products Business and ¥321 million for the Functional Resin Products Business), continuing to advance its development processes through the use of materials informatics and data science.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales came to ¥58,556 million (down 2.6% year on year), marking two consecutive years of revenue decline, while operating profit rose sharply to ¥7,100 million (up 25.2% year on year), a turn to significant profit growth. The profit recovery amid declining sales appears to be driven primarily by improvement in cost of sales (from ¥36,269 million to ¥33,571 million), suggesting an improvement in the earnings structure. However, net sales remain well below the FY2023 (ended March 2023) peak of ¥62,178 million, and the sustainability of the top-line recovery needs to be assessed.

On May 19, 2026, it was discovered that there was an error in the breakdown presentation of selling, general and administrative expenses in the consolidated statement of income, and a correction was made. Although the correction had no impact on profit or loss, the magnitude of the changes in the breakdown was substantial—for example, research and development expenses were significantly revised from ¥519 million before correction to ¥1,394 million after correction—raising concerns about the precision of the disclosure process. As a disclosure issue following the discovery of misconduct by a former officer, ongoing monitoring of governance is required.

Against the medium-term management plan NF2026's target of net sales of ¥80,000 million and ROE of 15% for FY2027 (ending March 2027), actual net sales for FY2026 (ending March 2026) stood at only ¥58,556 million. With just one fiscal year remaining, an increase in sales of over approximately ¥21,000 million is required, and achieving the target will require both a sharp recovery in the semiconductor market and early full-capacity operation of the new plant. As an external factor, the trend in recovery of demand for semiconductor manufacturing equipment holds the key to performance, but at present the gap versus the target is large, and a cautious assessment of the plan's feasibility is warranted.

Growth Strategy

Aiming for net sales of ¥80,000 million and ROE of 15% through capacity expansion for semiconductor and advanced industries and digital solutions

New plants are under construction domestically and overseas to respond to the recovery and expansion of demand for High-Function Sealing Products (for Advanced Industries) and fluororesin products for advanced industries such as semiconductor manufacturing equipment. The company aims to capture order opportunities and expand customer share through expanded supply capacity.

Based on the medium-term management plan NF2026, the company is promoting the expansion of its product lineup for the semiconductor-related market and the enhancement of its supply chain. It aims to increase the sales ratio for advanced industries in both the Sealing Products Business and the Functional Resin Products Business.

The company is expanding customer adoption of AI/IT Digital Solutions for plants, promoting a shift to a composite revenue model that adds value-added service revenue on top of product sales. It aims to increase the added value of its business through digital services.

The company is expanding its segment assets and business foundation through M&A and business alliances, including making Torque System Co., Ltd. a consolidated subsidiary. It aims to strengthen profitability through synergies with existing businesses.

Last updated: July 19, 2026