ASAHI RUBBER INC.

Business Details

Manufactures and sells rubber products used in automotive equipment (ASA COLOR LED for automotive interior lighting, Precision Rubber Products (O-rings, Switch Components, etc.)), electronic and electrical equipment, industrial equipment, sporting goods (Table Tennis Racket Rubber), and communication equipment (Rubber Products for RFID Tags), among others. Manufactured at domestic plants and a Chinese subsidiary, and sold domestically and in Asia, North America, and Europe through group companies. This is the core segment, accounting for approximately 76% of consolidated net sales.

Recent Overview

Strong precision rubber and table tennis rubber sales drove a 165.8% year-on-year surge in segment profit

In the Industrial Rubber Business for FY2026 (ending March 2026), net sales rose to ¥5,947 million (up 1.2% year on year), and segment profit increased substantially to ¥305 million (up 165.8% year on year). While ASA COLOR LED orders decreased due to the impact of sales trends of adopted vehicle models, this was offset by increased orders for precision rubber products for O-rings and switch components and for table tennis racket rubber. On the other hand, sales of rubber products for RFID tags declined due to the impact of the economic environment and production adjustments. The disappearance of the large-scale impairment loss (¥285 million) recorded in the prior period also contributed to the improvement in profit. Major customers were Alps Alpine (¥1,059 million), Nichia Corporation (¥901 million), and Tamasu (¥855 million).

Key Products

Growth Drivers

• Growth of the functional products business driven by expanding orders for Precision Rubber Products (O-rings, Switch Components, etc.)
• Continued increasing trend in orders for Table Tennis Racket Rubber
• Expected expansion of orders for automotive-related precision rubber products in the next period (reflected in the FY2027 (ending March 2027) forecast)
• Improved profitability through rationalization investment at domestic plants and the establishment of a new production system
• Enhanced added value through the shift to ODM (in-house design and development)
• Focus on priority markets (mobility, sports, and health) under the 15th Medium-Term Management Plan (April 2026 to March 2031)

Risks

• Dependence on sales trends of vehicle models adopting ASA COLOR LED (automotive interior lighting) and associated demand fluctuation risk
• Cost pressure from rising resource prices and inflation due to global inflation and yen depreciation
• Impact on sales to Asia from continued US-China tensions and the slowdown of the Chinese economy
• Sluggish demand for rubber products for RFID tags due to the impact of the economic environment and production adjustments
• Resource procurement risk and price increases associated with geopolitical risk (e.g., situation in Iran)
• Costs of responding to supply chain transformation associated with the spread of electric vehicles