ENVALITH
株式会社ショーエイコーポレーション logo

SHOEI CORPORATION

9385・Standard Market・Chemicals

Official website
株式会社ショーエイコーポレーション logo
SHOEI CORPORATION9385

Business

Shoei Corporation was founded in 1968 as a bag-manufacturing company and has since developed into an integrated support manufacturer operating two business segments: the Sales Promotion Support Business and the Merchandise Sales Business. The Sales Promotion Support Business provides end-to-end support ranging from the planning and development of Sales Promotion Goods & Materials to OEM manufacturing, assembly, and Shipping/Fulfillment Services (DM, Yu-Mail, etc.). The Merchandise Sales Business plans, procures, and supplies functional polyethylene products such as deodorizing bags and freshness-preserving bags, as well as value-added sundry goods, for 100-yen shops and drugstores. The company's consolidated subsidiaries include SHOEI PLASTIC (THAILAND) CO., LTD. and Fine Chemetics Co., Ltd. (absorbed via merger effective April 1, 2026), and it also undertakes OEM contract manufacturing of cosmetics and quasi-drugs. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

In the Sales Promotion Support Business, the company builds up repeat orders by taking on end-to-end outsourced contracts for clients' sales promotion activities—from planning through to delivery—creating a structure in which improved utilization of its own factories directly translates into an improved cost ratio. In the Merchandise Sales Business, the company continuously supplies functional products to major 100-yen shop chains (Can Do, Seria, and Daiso Industries), improving the revenue mix through supplier diversification and a shift toward high value-added products. Expanding combined sales that leverage synergies between the two businesses is key to diversifying revenue.

Company Strengths

The company owns proprietary facilities such as the Osaka Center, Osaka No. 2 Center, and Kanagawa Center, and has internalized pillow packaging, assembly, filling, and shipping/fulfillment services. In FY2026 (ending March 2025), the cost ratio of the Sales Promotion Support Business improved by 3.1 percentage points year-on-year to 75.2%, confirming as an actual result that higher factory utilization rates directly translate into improved profit margins.

Cando, Seria, and Daiso Industries together account for 37.7% (¥7,178 million) of net sales in FY2026 (ending March 2026). Functional polyethylene products such as deodorizing bags and freshness-preserving bags enjoy stable repeat demand, and the customer base built on long-standing transaction history serves as a barrier to entry for competitors.

The company obtained cosmetics manufacturing and quasi-drug manufacturing licenses in 2011, and additionally acquired a manufacturing and marketing license in 2017. Through the merger absorbing its wholly owned subsidiary Fine Chemetics (effective April 1, 2026), the cosmetics OEM and filling functions have been integrated into the parent company, aiming to concentrate management resources and strengthen the business structure.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales were ¥19,047 million (up 0.1% year on year), essentially flat, while operating profit reached ¥1,331 million (up 78.1% year on year) and net income attributable to owners of parent came to ¥853 million (up 82.7% year on year), marking a substantial increase in profit. The gross profit margin improved from 21.8% in the previous period to 24.6%, as the shift toward high value-added products and improved utilization rates at the company's own plants, which have reduced costs, are fundamentally transforming the profit structure. SG&A expenses were also reduced by ¥63 million year on year to ¥3,347 million, confirming improved cost discipline.

In FY2026 (ending March 2026), interest expense rose to ¥63 million, roughly double the ¥33 million recorded in the previous period, as the external factor of rising interest rates pushes up financial costs. With short-term borrowings of ¥2,030 million and long-term borrowings (including the current portion due within one year) of ¥1,210 million, the balance of interest-bearing debt remains at a high level, and depending on future interest rate trends, this could become a factor pressuring ordinary income. On the other hand, the equity ratio improved from 41.0% to 46.7%, indicating steady improvement in financial soundness.

The company forecasts net sales of ¥20,267 million (up 6.4%), operating profit of ¥1,439 million (up 8.1%), and net income attributable to owners of parent of ¥972 million (up 13.9%), anticipating continued growth. While the strengthening of the business structure through the absorption-type merger with Fine Chemetics is expected to be an additional positive factor, external risks remain, including surging prices of imported raw materials such as crude oil and naphtha amid escalating tensions in the Middle East, sharp foreign exchange fluctuations, and uncertainty over the US and Chinese economies. The extent to which rising raw material costs can be absorbed through further shifts to high value-added products and diversification of suppliers will be key to achieving the earnings targets.

Growth Strategy

Establishing an improved earnings structure through deeper high value-added integrated sales, group restructuring, and strengthened development capabilities

The Company continues to expand repeat sales of high value-added products and develop new markets, while advancing product development that spans beyond the boundaries of the Sales Promotion Support Business and the Merchandise Sales Business. It aims to raise order unit prices and profit margins by strengthening integrated sales to end users. In FY2026 (ending March 2026), segment profit in the Sales Promotion Support Business increased 146.9% year on year, with results becoming visible.

The Company absorbed its wholly owned subsidiary Fine Chemetics Corporation (contract manufacturing, manufacturing and sales, and import/export of quasi-drugs and cosmetics) effective April 1, 2026. By concentrating and streamlining management resources and internalizing manufacturing capabilities in the cosmetics and quasi-drug fields, the Company aims to strengthen its integrated proposal capabilities.

By diversifying suppliers, including the China procurement base (Shanghai Zhaorong Trading Co., Ltd.), the Company is strengthening its resilience against rising raw material prices and higher import procurement costs. It continues to reduce sales of low-margin products and shift toward higher-profitability products, maintaining improvement in the gross profit margin. In FY2026 (ending March 2026), cost of sales was reduced by ¥504 million year on year, confirming results.

To advance product development that spans beyond the boundaries of both business segments, the Company continues to enhance and strengthen its development department and build out its hiring and training systems for R&D personnel. Expenditures for the acquisition of intangible fixed assets surged from ¥25 million in the previous fiscal year to ¥159 million, accelerating investment in systems and development infrastructure.

The Company is integrating its Thailand manufacturing base, China procurement base, domestic factories, and the functions of Fine Chemetics following the absorption-type merger, to strengthen collaboration across the group as a whole. It aims to build a comprehensive support system capable of responding to diverse customer needs, thereby enhancing corporate value.

Last updated: July 19, 2026