SANNO Co.,Ltd.

Business Details

A core domestic segment providing an integrated three-process offering consisting of Precision Press Processing (including mold design and manufacturing), Precious Metal Surface Treatment Processing (gold, palladium-nickel, tin plating, etc.), and Insert Molding Processing. In February 2026, the company absorbed its wholly owned subsidiary Meiou Kasei Co., Ltd. through a merger, further strengthening its integrated processing structure covering pressing, plating, and insert molding. Main customers are connector manufacturers and others, supplying high value-added components for advanced products such as automotive (ADAS, in-vehicle equipment), industrial equipment (AI servers, semiconductor manufacturing equipment), and smartphones. This is the flagship segment, accounting for approximately 74% of consolidated net sales.

Recent Overview

Both net sales and profit increased substantially year on year; integrated structure strengthened through absorption of Meiou Kasei

For the cumulative third quarter of FY2026 (ending March 2026) (August 2025 to April 2026), the Japan segment recorded net sales of ¥8,190 million (up 51.6% year on year) and segment profit of ¥1,270 million (up 129.6% year on year), representing substantial increases in both revenue and profit. This was primarily driven by expanded orders for AI server, semiconductor-related, and automotive ADAS applications. Effective February 1, 2026, the company absorbed its wholly owned subsidiary Meiou Kasei Co., Ltd. through a merger, integrating insert molding technology and equipment into the parent company. In addition, from the first quarter, the company changed its depreciation method from the declining-balance method to the straight-line method, resulting in an accounting impact that increased operating income by ¥111 million for the cumulative third quarter.

Key Products

Growth Drivers

• Expansion trend in the industrial equipment field driven by generative AI and data center-related demand
• Continued firm demand related to automotive ADAS applications
• Expanding orders in the semiconductor-related field
• Steady progress in the communication-related field for PCs and tablets
• Improved production capacity and quality stability through operation of new plating lines
• Strengthened integrated processing structure covering pressing, plating, and insert molding through the absorption-type merger with Meiou Kasei Co., Ltd.
• Advancement of fine plating technology and mold manufacturing technology
• Improved productivity and competitiveness through automation and efficiency improvements in manufacturing processes
• Appropriate pass-through of cost increases such as raw material prices

Risks

• Cost pressure from persistently high raw material prices (precious metals such as potassium gold cyanide)
• Demand fluctuations due to US tariff policy and geopolitical risks (Middle East situation, etc.)
• Risk of spillover effects on electronic component demand due to sluggish Chinese economic conditions and delayed recovery in domestic demand
• Unstable order intake due to variation in demand by model, such as for smartphones
• Profit pressure from rising prices and increasing labor costs
• Accounting estimation uncertainty associated with the change in depreciation method (from declining-balance to straight-line)
• Feasibility of realizing integration costs and operational efficiency following the absorption-type merger with Meiou Kasei