SEIKA CORPORATION
8061・Prime Market・Wholesale Trade
Business
Seika Corporation is a specialized machinery equipment trading group established in 1947, originating from the machinery division of the former Mitsubishi Corporation's Western Japan operations. The group comprises 25 subsidiaries and 8 affiliated companies, and operates across three segments: the Energy Business (sales and maintenance of power generation equipment for thermal, nuclear, hydroelectric, biomass, and other power sources), the Industrial Machinery Business (sales, maintenance, and manufacturing of Energy-Saving, Labor-Saving & DX Equipment), and the Product Business (domestic and overseas sales of niche top-share products such as Measuring Instruments, submersible pumps, and valves). Its primary customers are key industries such as electric power companies, petrochemicals, and steelmaking, and the group supports industrial infrastructure through its sales and service network spanning Japan and overseas. Consolidated net sales for FY2026 (ending March 2026) reached ¥108,485 million.
Business Model
Built on trading rights and distributorship agreements with leading manufacturers—including serving as an agent for Mitsubishi Heavy Industries' nuclear power business—the company sells power generation equipment, industrial machinery, and niche products to customers, and accumulates recurring revenue through After-Sales Maintenance Service and periodic repair work. It further expands its product lineup through manufacturing subsidiaries such as Nippon Diaphragm Valve and Asahi Sunac, combining trading-house functions with manufacturing capabilities to provide added value. Business synergies with equity-method affiliates also contribute to earnings.
Company Strengths
With the company becoming a sales agent for Mitsubishi Heavy Industries' nuclear power business, its foundational earning capacity improved, and in FY2026 (ending March 2026) the Energy Business recorded net sales of ¥38,492 million (up 9.5% year on year) and segment operating profit of ¥3,584 million. Periodic maintenance work for nuclear and thermal power plants represents structurally recurring demand, and the order backlog has also grown to ¥29,403 million (up 16.8% year on year).
Consolidated subsidiaries in the Product Business achieved profit growth across the board, including Nihon Diaphragm Valve (operating profit of ¥1,316 million, up 41.3% year on year), the Tsurumi (Europe) GmbH group (operating profit of ¥1,816 million, up 15.2% year on year), Seika Dia Engine (operating profit of ¥623 million, up 23.4% year on year), and Shikishima Kikai (operating profit of ¥270 million, up 24.7% year on year). This group of subsidiaries with manufacturing capabilities forms a stable pillar of group earnings.
Starting with the consolidation of Nihon Diaphragm Valve as a subsidiary in 2005, the company has expanded its business rights, manufacturing capabilities, and product lineup through a series of M&A transactions, including Shikishima Kikai in 2016, Tsurumi UK in 2020, equity-method application of TVE and Nippon Fenwal in 2023, and the full consolidation of Asahi Sunac in December 2025 (an investment of approximately ¥176,300 million in acquisition consideration).
ENVALITH's Perspective
Performance Trend
Revenue increased 27% over five fiscal years, from ¥85,307 million in FY2022 (ended March 2022) to ¥108,485 million in FY2026 (ending March 2026), with FY2026 in particular accelerating to 15.7% growth year on year. Operating profit also expanded 2.1-fold over five fiscal years, from ¥3,824 million in FY2022 (ended March 2022) to ¥8,031 million in FY2026 (ending March 2026), with the operating margin improving to 7.4% (versus 6.9% in the previous fiscal year). This was driven by steady delivery of power plant repair and new construction work in the Energy Business, as well as solid performance from the group of consolidated subsidiaries in the Product Business. Meanwhile, equity in earnings of affiliates accounted for using the equity method contracted to ¥579 million (versus ¥1,366 million in the previous fiscal year), constraining growth in ordinary profit relative to operating profit. Profit attributable to owners of parent decreased 3.7% year on year to ¥7,507 million, due to a decline in gains on sales of policy-holding shares (¥2,130 million, versus ¥2,781 million in the previous fiscal year). For FY2027 (ending March 2027), the company forecasts revenue of ¥125,000 million (up 15.2% year on year) and operating profit of ¥9,100 million (up 13.3% year on year).
Growth Strategy
Final year of VIORB2030 Phase 1: growth acceleration through full-year contribution from Asahi Sunac and improved profitability across the three business segments
Through capital and business alliances with TVE and Nippon Fenoall, the Company is enhancing sales capabilities and synergies in power plant-related equipment. Energy Business net sales for FY2026 (ending March 2026) expanded steadily to ¥38,492 million (up 9.5% year on year). The segment profit calculation method was changed to include equity in earnings of affiliates, establishing a framework that reflects collaboration with affiliates in financial results.
In December 2025, the Company made Asahi Sunac a wholly owned subsidiary for ¥18,816 million, acquiring manufacturing functions for coating machines, forging machines, and other equipment. In FY2026 (ending March 2026), only one month of contribution was consolidated (net sales of ¥1,154 million, operating profit of ¥112 million). In FY2027 (ending March 2026), full-year contribution is expected to drive a substantial improvement in the profitability of the Industrial Machinery Business.
Consolidated subsidiaries such as Tsurumi Europe, Nippon Diamond Valve, Seika Daiya Engine, and Shikishima Kiki have steadily expanded their performance. Product Business segment profit for FY2026 (ending March 2026) was ¥4,452 million (up 23.8% year on year). The Company will continue to promote profitability improvements and overseas expansion at each subsidiary, strengthening the Group's overall stable earnings base.
The shareholder return policy was changed from a "target consolidated total return ratio of 45%" to a "target consolidated dividend payout ratio of 45%," shifting to a policy centered on dividends based on business earnings. The annual dividend for FY2027 (ending March 2026) is forecast at ¥93 (compared to an effective ¥81.66 in the previous fiscal year). As a subsequent event, the Company resolved to acquire treasury shares up to a maximum of 1,050,000 shares and ¥3.0 billion during the period from May 14, 2026 to August 31, 2026.
Last updated: July 19, 2026