Research

Hamai Industries: LPG valve maker rebuilding governance after antitrust order

HAMAI INDUSTRIES LTD (6497) · Published 2026-10-27 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Hamai Industries manufactures and sells valves for LPG cylinders, valves for high-pressure gas cylinders and gas equipment, and valves for piping, and also sells brass shavings generated in production. LPG cylinder valves are its main product line, and the company states that sales to domestic customers make up the overwhelming majority of revenue.
  • It reports two segments: the Valve business and the Real Estate Leasing business. The leasing segment rents out a retail building built on surplus land at the Fuchu factory and a nursing home built on the former head-office site.
  • The group consists of the parent, one consolidated subsidiary, Hamai Korea, which makes and sells high-pressure gas valves in Korea and is the base for business in China, and two affiliates that are not accounted for by the equity method. The company took over the entire business of its Shikoku sales agent affiliate on January 31, 2023.
  • The fiscal year ends in December. The annual securities report lists 297 consolidated employees at December 31, 2025, and names Shin Nihon Brass Co., Ltd. as a customer accounting for more than a tenth of consolidated sales.

Investment case

  1. The annual securities report for the year to December 2025 states that the group funds working capital and capital expenditure mainly from its own funds and retains earnings internally. No bank borrowings appear on the consolidated balance sheet at March 31, 2026, only lease obligations, while the company holds cash, investment securities and treasury shares (see Performance & Balance).
  2. The first-quarter earnings release for the year to December 2026 forecasts a higher annual dividend than for the year to December 2025, with a larger interim payment. The articles of incorporation allow the board, rather than the shareholders' meeting, to decide dividends.
  3. The company states a target for operating margin and says it emphasizes ROA and ROIC. Among its priorities for 2026 it lists management with cost of capital in mind and a review of its vision, medium-term plan and organization.
  4. The company is developing hydrogen-gas cylinder valves with pressure-reducing functions for fuel-cell vehicles jointly with a domestic automaker. Its hydrogen refueling nozzles have entered operation at some hydrogen stations.

Bear case

  1. In June 2024 the Japan Fair Trade Commission issued a cease-and-desist order and a surcharge payment order against the company for violating the Antimonopoly Act. The company sued two former directors for damages in the Tokyo District Court in December 2024 after a shareholder demand, and states that the case is ongoing and could materially affect its financial position and results.
  2. The company's own risk disclosure says overall demand for LPG cylinder valves is expected to decline because of deregulation and the shift to larger cylinders, which could intensify competition for orders. Management also states that future demand for its existing main products cannot be viewed optimistically.
  3. In the first quarter of the year to December 2026, sales rose but operating profit fell, which the company attributes to a higher cost ratio from rising raw material and other prices. Piping valve sales also declined because the recovery in demand from semiconductor manufacturing equipment makers has been slow.
  4. Part of the balance sheet is tied up in assets outside the valve business, including investment securities whose valuation gains have driven recent increases in net assets, and leased real estate (see Performance & Balance).

Catalysts

  • Results for the first half of the year to December 2026 and for the full year to December 2026, measured against the company's unchanged forecasts published in February 2026.
  • The year to December 2026 is the final year of the 2026 Medium-Term Management Plan, and the company states it will prepare the next medium-term plan and a new vision during the year.
  • Progress in the damages lawsuit against the two former directors in the Tokyo District Court, which the company flags in its earnings forecast section.

Key risks

  • Demand decline and price competition in LPG cylinder valves, the company's main product, due to deregulation and larger cylinders.
  • Raw materials make up a relatively large share of product cost, so sharp swings in material prices can affect results.
  • Changes in politics, economy, regulation or taxation in Korea, China and other Asian markets where Hamai Korea operates, as well as conflict, disasters or infectious disease there.
  • Product defects leading to quality problems or recalls in the cylinders, piping and equipment that incorporate its valves, and disruption to operations from natural disasters or accidents despite its business continuity plan.

Trading liquidity

Median daily trading value US$0.04mn
Average daily volume 6,149 shares

2025-10-07 to 2026-10-26 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • Revenue includes brass shaving sales whose value moves with brass prices and volumes, so changes in total sales do not reflect valve demand alone.
  • The first-quarter release was not reviewed by an auditor and does not include a quarterly cash flow statement, so cash movements within the quarter can only be read from balance sheet changes.
  • Qualitative statements are taken from the annual securities report for the year to December 2025 and the first-quarter earnings release for the year to December 2026.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

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Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Machinery

HAMAI INDUSTRIES LTD

Hamai is a Japanese manufacturer of industrial valves, holding the domestic top market share in LPG container valves, with its flagship 'SOLW' model installed on approximately 40% of all domestic LPG cylinders. The company produces a comprehensive lineup including ball valves, high-pressure gas valves, and hydrogen valves, serving diverse end markets such as energy, semiconductors, mobility, food & biomedical, and firefighting/medical gas applications. Hamai is recognized as one of the world's three major manufacturers of specialty high-pressure valves and achieved the world's first global certification for hydrogen tank safety relief devices (PRD), positioning itself as a leading company in the hydrogen valve segment.

Market Cap
US$57.9M
¥9.25B
EV
US$12.6M
¥2.01B
StockUS$8.63(¥1,378)▲+3.07%
US$1 = ¥159.70 (2026-11-12)
LTM EV/EBITDA
1.2
x
LTM EV/EBIT
1.8
x
LTM PER
10.3
x
LTM PBR
0.5
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-1.6%pt
100
Nov 13, 25 – Nov 13, 26StockTOPIX
MC → EV Bridge
US$57.9M¥9.25BMarket CapUS$1.05M¥0.17B+ DebtUS$16.5M¥2.63B− CashUS$29.9M¥4.77B− Inv. Sec.US$12.6M¥2.01BEV
AI Briefing
Hamai is Japan's top LPG cylinder valve maker and one of three global specialty high-pressure valve producers, pushing into hydrogen valves/nozzles with FY25/12 revenue US$79.5M (¥12.7B) and OP US$6.89M (¥1.1B) (8.6%). Final year of its 2026 mid-term plan running alongside litigation against two former directors tied to a 2024 antitrust order, with Q1 FY26/12 margin pressure from rising material costs and slow semiconductor-equipment piping demand. Beluuga's note flags governance rebuilding post-antitrust order, board (not shareholder) discretion over dividends, a stated cost-of-capital/ROIC focus, and a balance sheet partly tied up in investment securities and leased former factory/head-office real estate outside the core valve business.
Performance & Balance
Revenue 5Y (US$)
US$59.2M¥9.46B'21/12US$70.1M¥11.2B'22/12US$69.7M¥11.1B'23/12US$75.7M¥12.1B'24/12US$79.6M¥12.7B'25/12
EBITDA 5Y (US$)
US$5.93M¥0.95B'21/12US$9.79M¥1.56B'22/12US$9.94M¥1.59B'23/12US$10.5M¥1.68B'24/12US$11.4M¥1.82B'25/12
Net Income 5Y (US$)
US$2.71M¥0.43B'21/12US$5.55M¥0.89B'22/12US$5.24M¥0.84B'23/12US$3.22M¥0.51B'24/12US$5.20M¥0.83B'25/12
Capital Structure
99%
EquityD/E 0.01xDebt
Liquidity vs Debt 5Y (US$)▲ Net Cash
CashInv. Sec.Debt
US$42.8M¥6.83BUS$0.52M¥0.08B'21/12US$44.2M¥7.06BUS$0.42M¥0.07B'22/12US$48.5M¥7.75BUS$0.65M¥0.10B'23/12US$49.9M¥7.97BUS$1.01M¥0.16B'24/12US$52.3M¥8.36BUS$1.09M¥0.17B'25/12
Business Segments
2025/12 · US$ (¥B)
95%
ValveBusiness
Revenue
US$76.0M(¥12.1B)
Segment profit
US$5.25M(¥0.84B)6.9%
4.5%
RealEstateRentBusiness
Revenue
US$3.61M(¥0.58B)
Segment profit
US$2.41M(¥0.38B)66.6%
Adjustments
Revenue
—
Segment profit
—
No segment changes in the last 5 years
Shareholders
Top 10 hold 53.8%
1
Stock Ownership Association
16.74%
2
The Dai-ichi Life Insurance Company, Limited
7.49%
3
HIKARI TSUSHIN,INC.
5.94%
4
Sato Kinzoku Co., Ltd.
5.01%
5
Saburo HAMAI
4.99%
6
Keiko HAMAI
3.30%
7
Kenichiro HAMAI
2.88%
8
Fuji Seimitsu Co., Ltd.
2.63%
9
Mitsuuroko Group Holdings Co.,Ltd.
2.61%
10
Reiko MITSUHASHI
2.23%
Management
9 officers
Shigeru KAWACHI
Representative Director, President
Sep 2004 Joined the Company Apr 2018 Deputy Manager, Otaki Plant Mar 2019 Director appointed Mar 2019 Plant Manager, Otaki Plant Feb 2025 Representative Director, President appointed (current)
1964-11-02
Shinsuke YOSHIMURA
Director, General Manager of Administration Division
Aug 2012 Seconded to the Company from Mizuho Bank, Ltd. Mar 2014 Joined the Company Mar 2014 Manager, Administration Division Mar 2014 Director appointed Jun 2018 Corporate Auditor, Hamai Korea Co., Ltd. appointed (current) Jul 2018 General Manager, Administration Division (current) Mar 2019 Managing Director appointed Mar 2019 General Manager, Business Development Office Mar 2019 Corporate Auditor, Shikoku Hamai Co., Ltd. appointed (current) Mar 2023 Senior Managing Director appointed Dec 2024 Representative Director, Senior Managing Director appointed Feb 2025 Director appointed (current)
1960-07-15
Nobuyuki MARUOKA
Director, General Manager of Production Division and Fuchu Plant Manager
Apr 1985 Joined the Company Apr 2018 Deputy Plant Manager, Fuchu Plant Mar 2019 Director appointed (current) Mar 2019 Plant Manager, Fuchu Plant (current) Feb 2025 General Manager, Production Division (current)
1963-03-27
Nobuyuki KAWAMURA
Director, Head of Product Research and Development Office
Apr 1987 Joined the Company Apr 2015 General Manager, Product Research and Development Department, Business Development Office Mar 2019 Director appointed (current) Mar 2019 Head of Product Research and Development Office, Business Development Division (current)
1962-12-09
Naoto YOKOZAWA
Director, General Manager of Sales Division and Head of Business Development Office
Apr 2004 Joined the Company Apr 2021 Deputy General Manager, Sales Division Mar 2023 General Manager, Sales Division (current) Mar 2023 Director appointed (current) Mar 2025 Head of Business Development Office (current) Mar 2025 Representative Director, Hamai Korea Co., Ltd. (current)
1973-12-06
Hirofumi KAWANISHI
Director and Plant Manager, Otaki Plant
Sep 1998 Joined the Company Jun 2014 Head, Osaka Sales Office Aug 2019 Deputy General Manager, Sales Division Apr 2023 Manager, Otaki Plant Apr 2025 Director appointed (current) Apr 2025 Executive Officer, Plant Manager, Otaki Plant (current)
1972-11-06
Shinjiro OKADA
Director, Full-time Audit and Supervisory Committee Member
Sep 2012 Advisor to the Company Mar 2016 Corporate Auditor appointed Mar 2021 Director, Audit and Supervisory Committee Member appointed (current)
1947-08-22
Koichi TEZUKA
Director, Audit and Supervisory Committee Member (Note 2)
Jul 2008 Retired from Tokyo Regional Taxation Bureau Aug 2008 Registered as Certified Tax Accountant (current) Jan 2009 Tax Advisor to the Company Mar 2011 Corporate Auditor appointed Mar 2021 Director, Audit and Supervisory Committee Member appointed (current)
1948-09-05
Shinichiro YOSHIBA
Director, Audit and Supervisory Committee Member (Note 2)
Oct 2000 Registered as Attorney at Law (current) Mar 2019 Corporate Auditor appointed Mar 2021 Director, Audit and Supervisory Committee Member appointed (current)
1973-11-04
Large Shareholding Reports
Dai-ichi Life Insurance Company, Limited
2026-11-06
7.53%→6.52%
Annual report (as of 2026-06-30): 7.49%
Hikari Tsushin, Inc.
2026-11-05
5.89%→6.77%
Annual report (as of 2026-06-30): 5.94%
Mitsu Tsushin Co., Ltd.
2026-08-24
4.88%→5.89%
Annual report (as of 2026-06-30): 5.94%
Koutsushin Co., Ltd.
2026-04-15
4.88%
Annual report (as of 2026-06-30): 5.94%
The Dai-ichi Life Insurance Company, Limited
2025-10-21
8.54%→7.53%
Annual report (as of 2026-06-30): 7.49%
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-11-13
Q3 Earnings Flash
FY ending Dec 2026
EDINET
2026-11-06
Large Shareholding Report
EDINET
2026-11-05
Large Shareholding Report
EDINET
2026-09-14
Semi-Annual Securities Report
Period: Jan 2026 – Dec 2026
TDnet
2026-09-14
業績予想の修正
FY ending Dec 2026
TDnetAmended
2026-09-14
Q3 Earnings Flash
FY ending Dec 2024
TDnet
2026-09-14
Q2 Earnings Flash
FY ending Dec 2026
EDINETAmended
2026-09-14
Amended Annual Securities Report
Period: Jan 2021 – Dec 2021
EDINETAmended
2026-09-14
Amended Annual Securities Report
Period: Jan 2022 – Dec 2022
EDINETAmended
2026-09-14
Amended Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINETAmended
2026-09-14
Amended Quarterly Securities Report
Period: Jan 2024 – Mar 2024
EDINETAmended
2026-09-14
Amended Semi-Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINETAmended
2026-09-14
Amended Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINETAmended
2026-09-14
Amended Semi-Annual Securities Report
Period: Jan 2025 – Dec 2025
EDINETAmended
2026-09-14
Amended Annual Securities Report
Period: Jan 2025 – Dec 2025
EDINETAmended
2026-09-14
Amended Annual Securities Report
Period: Jan 2023 – Dec 2023
EDINET
2026-08-24
Large Shareholding Report
TDnet
2026-05-13
Q1 Earnings Flash
FY ending Dec 2026
EDINET
2026-04-15
Large Shareholding Report
EDINET
2026-03-27
Annual Securities Report
Period: Jan 2025 – Dec 2025
TDnet
2026-03-05
株主総会招集通知
TDnet
2026-02-13
Full-Year Earnings Flash
FY ending Dec 2025
TDnet
2025-11-11
Q3 Earnings Flash
FY ending Dec 2025
EDINET
2025-10-21
Large Shareholding Report
EDINET
2025-08-07
Semi-Annual Securities Report
Period: Jan 2025 – Dec 2025
TDnet
2025-05-13
Q1 Earnings Flash
FY ending Dec 2025
EDINET
2025-03-31
Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-08-09
Semi-Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-05-13
Quarterly Securities Report
Period: Jan 2024 – Mar 2024
EDINET
2024-03-29
Annual Securities Report
Period: Jan 2023 – Dec 2023
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