7782.T

• Company Overview

  • シンシア is a Japanese fabless contact lens manufacturer founded in 2008, that outsources production to overseas partner factories and sells primarily in the Japanese market, with a focus on delivering safe, high-quality products at accessible price points across multiple sales channels including ophthalmology clinics, drugstores, and e-commerce.
  • The company is actively pursuing business diversification from its core contact lens business via M&A and new business expansion. It acquired a clinic consulting business in December 2022, acquired Talos Systems (a developer of POS systems for the reuse industry) in November 2023, and acquired the color contact lens sales business including the EC site "Mewコンタクト" from Flue Inc. in March 2025.
  • Leveraging its experience as a contact lens manufacturer (a class of advanced medical device), the company also provides regulatory application support services for overseas companies looking to enter the Japanese market for medical devices, quasi-drugs, and cosmetics, a growth area with increasing inbound demand.

• 2025 December Period Full-Year Operational Highlights

  • Core product strength: The flagship silicone hydrogel "シンシアS" series performed strongly, driving growth for the core contact lens business. The addition of the long-awaited "シンシアワンデーS乱視用" (for astigmatism) to the product lineup in February 2025 improved product competitiveness and lifted sales. Over the past two years, the number of retail locations carrying the "シンシアS" series has grown ~1.2x, and series sales have also grown 1.2x, with the color lens variant "クレシェ" also seeing steady strong demand.
  • Acquired business contribution: The color contact lens business acquired in March 2025 contributed to overall sales expansion, growing color contact lens sales for both シンシア branded and private label products. The company will continue to pursue synergies with its existing contact lens business and cost optimization to grow profits from this acquisition.
  • Overall 2025 financial results: The company achieved increased revenue and increased profit for the period. Net sales grew 14.0% year-over-year to 7.456 billion yen, gross profit grew 13.4% year-over-year to 2.378 billion yen, operating profit grew 8.2% year-over-year to 0.524 billion yen, ordinary profit grew 9.9% year-over-year to 0.514 billion yen, and EBITDA grew 9.6% year-over-year to 0.619 billion yen. A 65 million yen allowance for doubtful accounts was recorded due to concerns over loan collection from a consulting client facing a deteriorated operating environment, resulting in net income attributable to parent company shareholders decreasing 12.4% year-over-year to 0.264 billion yen.
  • Key growth drivers: Revenue growth came from successful growth initiatives for existing businesses and contribution from the acquired Mewコンタクト color contact lens business. Profit growth was driven by consistent foreign exchange hedging, growth of high value-added silicone hydrogel lenses, and the addition of new businesses via M&A.

• Overall 2026 December Period guidance expects 2.7% revenue growth and lower profit year-over-year: net sales of 7.657 billion yen, gross profit of 2.375 billion yen (down 0.1% YoY), operating profit of 0.388 billion yen (down 25.9% YoY), ordinary profit of 0.362 billion yen (down 29.6% YoY), net income attributable to parent company shareholders of 0.246 billion yen (down 6.6% YoY), and EBITDA of 0.47 billion yen (down 24.1% YoY). The assumed USD/JPY exchange rate is 155.0 yen per USD.
  • 2026 is positioned as a "year of strategic investment" to drive future growth. Key priorities include:
    • Expanding product assortment: Launch new clear and color contact lens products under the シンシア brand, and expand distribution and sales for the recently launched "シンシアワンデーS乱視用".
    • Growing own-brand sales: Strengthen distribution through ophthalmology clinic channels, improve brand awareness in drugstore channels, capture growing inbound demand, and expand marketing activities for core lines including the "シンシアS" and "アイウェル" series to grow sales and market share for both clear and color シンシア branded lenses. Supply to other third-party brands is expected to remain challenging due to intensifying price competition.
    • Develop next-generation POS system in the System business: Development has been launched with a target release within the 2026 December Period, which will drive long-term growth of recurring revenue for the system business and support sustained growth of the contact lens business.
    • Continue restructuring the consulting business, pursue additional M&A opportunities across the group, and implement initiatives to grow sales and reduce costs to improve profitability and maximize corporate value. Amid the continued challenging yen depreciation environment, the company will maintain focus on foreign exchange risk management, and execute marketing and sales promotion activities efficiently via DX tools.
  • Shareholder return guidance: The company maintains a basic policy of stable dividends, with a target consolidated payout ratio of 40%. A year-end dividend of 16 yen per share is planned for the 2026 December Period. The company's shareholder benefit program offers special discount coupons (30% to 60% off) for the official brand e-commerce site, and optional digital gifts (QUO Card Pay, Amazon Gift Card) based on shareholding size and holding period to incentivize medium and long-term shareholding.

• コンタクトレンズ事業: 売上高 6.976 billion yen, セグメント利益 0.69 billion yen, 93.55% of total consolidated revenue
• コンサルティング事業: 売上高 31 million yen, セグメント利益 13 million yen, 0.42% of total consolidated revenue
• システム事業: 売上高 448 million yen, セグメント利益 90 million yen, 6.01% of total consolidated revenue
• A 270 million yen adjustment amount covers corporate common expenses including management division costs.

• Sustained yen depreciation creates upward pressure on product cost ratios, even with partial mitigation from yen-denominated procurement for some products.
• Intensified price competition is expected to continue for third-party supplied contact lens products, creating pressure on that segment's performance.
• Deteriorated operating environment for a consulting business client created collection uncertainty for an outstanding loan, leading to a 65 million yen allowance for doubtful accounts being recorded in the 2025 period, with continued restructuring of the consulting business required to improve performance.

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