OVAL

Basic Information

Stock Code
7727
Industry
Precision Instruments
Category Detail
Commercial & Industrial Machinery
Prefecture
Tokyo
Establishment Year
May 1949
Listing Year
October 1961
Official Website
https://www.oval.co.jp/
TSE Information
TSE Information
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Overview

OVAL is a major specialized manufacturer of industrial fluid measurement instruments founded in 1949, contributing to industries at home and abroad through the manufacturing and sales of high-performance flowmeters and related systems as a precision instrument maker.

Current Situation

OVAL recorded consolidated sales of approximately 11.9 billion yen and net profit of approximately 280 million yen in fiscal 2020, maintaining a stable business base. In its mainstay flowmeter business, it boasts the top share in Japan with high precision and reliability, providing equipment for a wide range of industrial applications. Technologically, it focuses on developing high-function products applicable to labor-saving and environmental control fields, centered on its proprietary oval gear flowmeter. In recent years, it has actively pursued overseas market expansion through the establishment of overseas affiliates and product exports. Regarding sustainability, it is working on product designs that achieve energy and resource savings, as well as environmental management. In the future, it aims to strengthen IoT-linked measurement systems and explore new fields, focusing on improving customer services through the introduction of digital technologies. It continues to strengthen its business foundation through capital and business alliances, flexibly responding to market changes.

Trivia

Interesting Facts

  • Founded based on gear technology invented by Masasuke Murakami, former president of Nissan Motor.
  • Established position as Japan's top dedicated flowmeter manufacturer.
  • Possesses local subsidiaries in Korea, China, Taiwan, and Malaysia to promote overseas expansion.
  • Has maintained listing on the Tokyo Stock Exchange for many years, earning market trust.
  • Diversified management handling environmental control instruments and instrumentation construction in addition to flowmeters.
  • Stable shareholder composition including major shareholders like Meiji Yasuda Life Insurance and Tokyo Keiki.
  • Utilizes subsidiaries to expand manufacturing bases in Yamanashi and Miyazaki prefectures.
  • Numerous delivery records to major domestic chemical plants and food production lines.
  • OVAL gear flowmeter highly evaluated as equipment strongly supporting labor savings.
  • Known in Japan's measurement instrument industry as a long-established maker of high-function, high-performance products.
  • Fluid measurement technology contributes to safe operation of many industrial infrastructures.
  • Quality control system in manufacturing processes boasts top-class rigor in the industry.
  • Head office located in Kamifukuoka, Shinjuku-ku, Tokyo, a historic base.
  • OVAL products hold numerous patents domestically and internationally.
  • Active in product development to reduce environmental impact, positioned as an industry leader.

Hidden Connections

  • OVAL gear technology invented by former Nissan Motor president forms the company's origin.
  • Active technology exchange through capital and business alliance with Tokyo Keiki Co., Ltd.
  • Past capital relationship with the Japanese subsidiary of U.S. Emerson Electric.
  • Strengthens manufacturing system with domestic regional subsidiaries like Yamanashi OVAL and Miyazaki OVAL.
  • Responds to growth markets through local corporations in Korea, Taiwan, China, and Malaysia.
  • Track record of technology alliances and joint developments with major peers in the industry.
  • Long-term transactions and mutual support relationships with major Japanese plant-related companies.
  • Actively acquires ISO and environmental management standard certifications, contributing to international trust.

Future Outlook

Growth Drivers

  • Rapid expansion of IoT needs for industrial measurement instruments
  • Increasing demand for energy-saving and resource-saving equipment due to stricter environmental regulations
  • Expansion of industrial plant investments in overseas markets
  • Strengthening development capabilities for new products incorporating digital transformation
  • Increasing demand for quality management-related equipment in aging society
  • Stable ongoing demand for flowmeter replacements accompanying equipment renewal cycles
  • Business expansion through expansion of global service network
  • Expanded response to automation and remote monitoring technologies across industries
  • Gaining customer support through enriched environmentally considerate product lineup
  • Strengthening development capabilities for products compliant with increasingly complex regulations
  • Expansion of solution provision for diverse industrial applications
  • Product performance improvement through introduction of new materials and technologies

Strategic Goals

  • Achieve 50% domestic market share for IoT-compatible flowmeters
  • Expand overseas sales ratio to over 30%
  • Reduce product environmental impact by 30%
  • Expand sales of energy-saving control systems to approximately 3 billion yen
  • Establish half of product lineup using new materials
  • Build and operate digital service platform
  • Achieve profitability at multiple overseas local corporations
  • Maintain customer satisfaction over 90% including after-sales service
  • Maintain R&D expense ratio at over 5% of sales
  • Enhance and continuously implement employee technical training programs

Business Segments

Industrial Fluid Measurement Instrument Manufacturing

Overview
Manufactures high-precision fluid measurement instruments for various industries, providing reliable measurement solutions.
Competitiveness
Proprietary OVAL gear technology and extensive track record of applications
Customers
  • Chemical plants
  • Oil refineries
  • Pharmaceutical manufacturers
  • Food manufacturers
  • Energy-related companies
  • Water treatment facilities
Products
  • OVAL Gear Flowmeter
  • Ultrasonic Flowmeter
  • Electromagnetic Flowmeter
  • Thermal Mass Flowmeter
  • Small-Diameter Flowmeter
  • Large-Diameter Flowmeter

Measurement and Environmental Control System Development

Overview
Provides systems that enable centralized management and analysis of measurement data, supporting energy savings and environmental conservation.
Competitiveness
Integrated solutions linked with measurement instruments
Customers
  • Factory equipment managers
  • Electric power companies
  • Environmental monitoring companies
  • Building management companies
Products
  • Centralized Monitoring System
  • Data Logger
  • Remote Control Unit
  • Environmental Management Device

Fluid Control Device Manufacturing

Overview
Manufactures high-performance valves and control devices necessary for fluid control, contributing to the efficiency of industrial equipment.
Competitiveness
High-reliability control technology and safety design
Customers
  • Plant engineering companies
  • Machinery manufacturers
  • Industrial equipment operators
Products
  • Automatic Control Valve
  • Manual Control Valve
  • Diagnostic System

Overseas Business Development

Overview
Promotes business expansion through product supply and technical support from overseas bases, mainly in Asia.
Competitiveness
Rapid service system linked with overseas bases
Customers
  • Overseas plant operators
  • Export customers
Products
  • Various Flowmeters
  • Related Control Systems

Competitive Advantage

Strengths

  • Proprietary OVAL gear technology
  • High-precision flow measurement capability
  • Stable financial base
  • Broad industry adaptability
  • Top domestic market share
  • Accumulated know-how over many years
  • Global expansion through overseas bases
  • High product reliability
  • Comprehensive after-sales service
  • Excellent energy-saving technology
  • Diverse product lineup
  • High technical skills of employees
  • Strong customer base
  • Environmental compliance product development
  • Active technology investment

Competitive Advantages

  • Differentiation from competitors through OVAL proprietary technology
  • High reliability as industry standard equipment
  • Position as Japan's top industrial flowmeter manufacturer
  • Product lineup covering diverse fluid measurement needs
  • Strengthened after-sales service through overseas bases
  • Provision of high-function products contributing to energy and resource savings
  • Strong relationships with long-term customers
  • Product performance improvement through technological innovation
  • Synergy effects with alliance partners
  • Rapid delivery and stable supply system
  • Product design adaptable to a wide range of industries and applications
  • High-level quality control system
  • Secured R&D expenses backed by stable performance
  • Global customer support with multilingual capabilities
  • Introduction of new technologies attuned to market needs

Threats

  • Price competition pressure from global competitors
  • Risk of rapid market changes due to new technologies
  • Cost increases from rising raw material prices
  • Risk of failing to meet diversifying customer needs
  • Political and economic uncertainties in overseas markets
  • Increased product compliance costs due to stricter environmental regulations
  • Technology succession risks from difficulties in securing talent
  • Deterioration of profitability due to exchange rate fluctuations
  • Decline in trust due to product failures or quality issues
  • Potential for patent infringements or intellectual property issues
  • Production delays due to supply chain disruptions
  • Business interruptions from natural disasters or pandemics

Innovations

2023: Development of IoT-Linked Flowmeter

Overview
Integrated IoT technology into conventional flowmeters, enhancing remote monitoring and data analysis functions.
Impact
Achieves improved efficiency in customer equipment management

2022: Adoption of Low-Environmental-Impact Materials

Overview
Introduced new materials with low environmental impact in major product components, contributing to improved recyclability.
Impact
Received high evaluations in product environmental performance assessments

2021: Launch of Multi-Function Flow Monitoring System

Overview
Commercialized a system capable of centralized management of data from numerous flowmeters from remote locations.
Impact
Contributes to reduction in equipment operation costs

2020: Development of High-Precision Ultrasonic Flowmeter

Overview
Brought to market a product with significantly improved measurement accuracy using a newly designed ultrasonic sensor.
Impact
Expanded adoption in many industrial plants

Sustainability

  • Reducing waste through product longevity
  • Promotion of developing highly energy-efficient equipment
  • Active adoption of environmentally friendly materials
  • Improvement of energy efficiency in factories
  • Maintenance and enhancement of ISO14001
  • Implementation of environmental education for employees
  • Establishment of product collection and recycling systems
  • Conducting environmental audits of supply chains
  • Setting CO2 emission reduction targets
  • Establishment of green procurement policies
  • Support for local environmental conservation activities
  • Response to Sustainable Development Goals (SDGs)