ENVALITH
株式会社山王 logo

SANNO Co.,Ltd.

3441・Standard Market・Metal Products

Official website
株式会社山王 logo
SANNO Co.,Ltd.3441

Business

Sanwa Co., Ltd. is a precision processing manufacturer founded in 1958, providing an integrated three-process service for electronic components such as connectors and switches: Precision Press Processing, Precious Metal Surface Treatment Processing (gold, palladium-nickel, and tin plating), and Insert Molding Processing. Domestically, the company operates multiple sites in Kanagawa and Fukushima, and overseas it has a subsidiary, SPMC, in the Philippines, serving a wide range of applications including automotive, telecommunications, industrial equipment, personal computers, and smartphones. Major customers include connector manufacturers such as JAE Philippines Inc. (20.7% of sales) and Suzuki Co., Ltd. (10.9% of sales). The company is listed on the TSE Standard Market. In November 2024, it made Meiou Kasei, a company with injection molding technology, a subsidiary, expanding its processing capabilities.

Business Model

The company receives consolidated orders for Precision Press Processing, surface treatment processing, and Insert Molding Processing from customer connector manufacturers, achieving high added value by providing integrated support from mold design and fabrication through mass-production delivery. It differentiates itself through advanced technical capabilities such as dimensional control at the 1/1000 mm level and precision partial gold plating, supplying automotive, telecommunications, and industrial equipment applications stably through a multi-site domestic production system. The company maintains thorough cost control by purchasing its main raw material, potassium gold cyanide, on a cash basis, while funding capital expenditures through borrowings from financial institutions.

Company Strengths

The company provides Precision Press Processing (supporting material thickness down to 0.05mm and pitch down to 0.25mm), Precious Metal Surface Treatment Processing (precision partial gold plating, Palladium-Nickel Alloy Plating, etc.), and Insert Molding Processing entirely in-house. Its integrated order-taking system gives it comprehensive capability across quality, price, and delivery time, meeting customers' needs for process consolidation.

Domestically, the company operates multiple sites including the Tohoku Division, Suzukawa Technical Center, and Hadano Press Technical Center, while overseas it operates SPMC in the Philippines. Total capital investment for FY2025 (ending July 2025) was ¥809 million (¥600 million domestic, ¥209 million at SPMC), with production capacity being actively expanded, centered on the construction of a new line at the Tohoku Division.

The company obtained a patent for a metal composite hydrogen permeation membrane in 2017. It has concluded joint research agreements with Institute of Science Tokyo and the National Institute of Advanced Industrial Science and Technology, and is advancing commercialization development of a low-cost, high-permeation hydrogen permeation membrane that applies its existing precious metal plating technology. The company positions this as a new business area related to carbon neutrality.

ENVALITH's Perspective

For the nine months ended in the third quarter of FY2026 (ending July 2026), net sales of ¥11,050 million, operating profit of ¥1,582 million, and profit attributable to owners of parent of ¥1,460 million already exceed the full-year forecast (net sales of ¥13,000 million, operating profit of ¥1,400 million, net profit of ¥1,280 million) for both operating profit and net profit. Unless the fourth quarter alone turns to a loss, a substantial overshoot of the full-year forecast appears virtually certain, yet the company has left its earnings guidance unchanged. This makes the conservatism of the forecast and the likelihood of an upward revision key points of investor attention.

From the first quarter of FY2026 (ending July 2026), the company changed its depreciation method for tangible fixed assets (excluding lease assets) from the declining-balance method to the straight-line method. As a result, operating profit, ordinary profit, and profit before income taxes for the cumulative nine months of the third quarter each increased by ¥112 million. This change in accounting policy is also noted as an emphasis-of-matter item by the audit firm, and comparative analysis on a basis excluding the effect of this change is required when assessing the company's underlying earnings power. As an external factor, it should also be noted that the impact may be difficult to discern as long as the tailwind from AI- and data-center-related demand continues.

At the end of the third quarter of FY2026 (ending July 2026), raw materials and supplies stood at ¥3,045 million, up ¥931 million from the end of the previous fiscal year, while short-term borrowings also expanded to ¥3,650 million (up ¥550 million from the end of the previous fiscal year). This appears to reflect advance procurement in response to strong order volumes, but as external risk factors, elevated precious metal and other raw material prices remaining high, as well as foreign exchange fluctuations (Philippine peso and US dollar), could pressure profitability. Although the equity ratio improved to 57.2% (from 52.6% at the end of the previous fiscal year), continued monitoring is warranted regarding the expansion of working capital and the trend in reliance on borrowings.

Growth Strategy

Aiming for sustainable growth through expanded orders in advanced product fields, deepening of integrated processing systems, and continued capital investment

Continuing to promote order expansion into growth areas centered on advanced product fields such as automotive ADAS-related, semiconductor-related, AI server-related, and smartphones. Cumulative sales for the third quarter of FY2026 (ending July 2026) reached ¥11,050 million (up 42.4% year on year), demonstrating notable results and confirming the effectiveness of the strategy.

Following a board resolution on November 14, 2025, the company absorbed its wholly owned subsidiary Meio Kasei Co., Ltd. through an absorption-type merger effective February 1, 2026. This integrates metal parts and resin Insert Molding Processing technologies, aiming to expand business and strengthen competitiveness through the consolidation of management resources, operational efficiency improvements, and deepening of the integrated processing system.

Launched a new plating line to increase production capacity and improve quality stability. The company is establishing a supply system to meet robust order demand while advancing the sophistication of fine plating technology to strengthen its capability to handle high-value-added products.

Continuing to work on automation and efficiency improvements in manufacturing processes to promote productivity gains and strengthen competitiveness. In parallel, the company is advancing the sophistication of mold manufacturing technology, and together with appropriate price pass-through of cost increases such as raw material prices, aims to strengthen its profit base.

Last updated: July 17, 2026