KODAMA CHEMICAL INDUSTRY CO.,LTD.
4222・Standard Market・Chemicals
Business
Kodama Chemical Industry Co., Ltd. originated as a plastic molding and processing manufacturer founded in 1952, and transformed into a comprehensive parts manufacturer encompassing three businesses—Resin Molding, Casting & Forging, and Powder Metallurgy—through the acquisition of Mepro Holdings in April 2025. Its main products span a wide range, including resin interior and exterior parts for automobiles such as instrument panels and front grilles, aluminum die-cast engine and transmission parts, forged shaft and hub parts, and sintered oil-impregnated bearings and soft magnetic material cores. Major customers include Honda Motor Co., Ltd. (15.7% of net sales), Thai Honda Co., Ltd. (15.0%), and Hayashi Telempu Corporation (3.0%), supplying primarily domestic and overseas automakers. The group, including 14 consolidated subsidiaries, has production sites in Japan, Thailand, Malaysia, China, the United States, and elsewhere.
Business Model
The Group adopts a build-to-order production system, manufacturing and delivering parts through resin molding, casting & forging, and powder metallurgy processes based on customer design specifications. Of net sales of ¥82,707 million, the Casting & Forging Business is the largest at ¥48,641 million (approximately 58.8%), followed by the Powder Metallurgy Business at ¥17,498 million (approximately 21.2%) and the Resin Molding Business at ¥16,578 million (approximately 20.0%). The company maintains a structure for securing profit through product price revisions and reductions in operating costs, and adopts a policy of funding capital expenditures exceeding retained earnings through external borrowing.
Company Strengths
With the April 2025 acquisition of Mepro Holdings, the company acquired aluminum die-casting, forging, and powder metallurgy metal processing technologies all at once, in addition to resin molding. Net sales increased 422.1% year on year to ¥82,707 million, total assets expanded to ¥67,111 million (up ¥53,016 million from the previous fiscal year), and the equity ratio improved from 28.8% to 42.3%.
The company independently developed a resin molding process using fiber-reinforced composite materials (glass and carbon fiber) to replace sheet metal, achieving adoption and commercialization by a major automaker. In the Casting & Forging Business, the company has established mass production technology for EV electrical component cases by combining FSW (friction stir welding) technology with vacuum casting, building a highly efficient production line that is difficult for other companies to imitate.
In the current consolidated fiscal year, net sales to Honda Motor Co., Ltd. amounted to ¥12,956 million (15.7% of net sales), and sales to Thai Honda Co., Ltd. amounted to ¥12,395 million (15.0%), with the Honda Group as a whole accounting for approximately 30.7% of total net sales. The company supplies a wide range of parts for two-wheeled vehicles, four-wheeled vehicles, and hybrid vehicles, and its continuous business relationships with major customers form a stable order base.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) reached ¥82,708 million (prior period: ¥15,842 million), with operating profit of ¥2,680 million (prior period: ¥162 million), as the expansion of the consolidation scope through the acquisition of Meupro Holdings as a subsidiary significantly boosted performance. Net income attributable to owners of parent turned sharply profitable at ¥23,534 million, a major swing from two consecutive years of losses, though most of this stemmed from a ¥22,598 million gain on negative goodwill. The operating margin remained at a low 3.2%, with heavy fixed cost burdens including depreciation of ¥4,350 million, interest expenses of ¥432 million, and impairment losses of ¥1,867 million. As for the external environment, the structure whereby trends in automobile production volumes, resin raw material prices, and exchange rates directly affect earnings remains unchanged.
Growth Strategy
Integration of resin and metal composite technologies through the Mepro acquisition, and new market development aimed at reducing dependence on the mobility sector
The consolidation of Mepro Holdings as a subsidiary expanded net sales by approximately 5.2 times and added metal processing technology to resin molding capabilities. Proceeds from acquisition of shares of subsidiaries resulting in change in scope of consolidation of ¥11,040 million were recorded, and the integration effect was reflected in the financial figures. Going forward, realizing integration synergies and improving fixed cost efficiency will be challenges.
The Mobility Business aims to expand sales through growth in production volume of main domestic passenger vehicle models and the start of mass production of new models. Sales to Hayashi Telempu expanded from ¥1,115 million in the previous fiscal year to ¥2,328 million in the current fiscal year, reflecting deepening transactions with key customers. However, management of customer concentration risk is also required in parallel.
The company aims to reduce its dependence on automotive market conditions by developing the Living Space Business (net sales of ¥4,264 million, segment profit of ¥339 million), which covers housing equipment, home appliance parts, and food containers, as well as the Advanced & Essential Business (net sales of ¥488 million) for entertainment and logistics materials. Recovery in demand for home appliance parts at the Thailand and Vietnam sites is also expected to contribute.
Last updated: July 19, 2026