TAKASAGO TEKKO K.K.,

Business Details

Manufactures and sells Polished Steel Strip, special Polished Steel Strip, Cold-Rolled Stainless Steel Strip (including Embossed Products), and processed stainless steel products, among others. Raw materials are procured from Nippon Steel Stainless Steel Corporation and Nippon Steel Corporation, with a portion of sales routed through Mitsui & Co. Steel Ltd. The main customer is Kotobuki Sangyo Co., Ltd. (net sales of ¥1,858 million in the current consolidated fiscal year). The primary end users are automotive parts manufacturers, and business performance is significantly affected by trends in the domestic and overseas automotive industry.

Recent Overview

Segment profit increased 15.4% year on year due to higher sales volume and improved prices in the Polished Steel Strip and press plate businesses

In FY2026 (ending March 2026), despite the negative impact of declining market prices in the stainless steel business, net sales increased to ¥11,927 million (up 0.1% year on year), supported by higher sales volume and improved sales prices in the Polished Steel Strip and press plate businesses. On the profit side, as a result of efforts in sales expansion, price improvement, and thorough cost reduction, segment profit (ordinary income basis) improved significantly to ¥471 million (up 15.4% year on year). The increase in tangible and intangible fixed assets expanded to ¥241 million from ¥194 million in the prior year, reflecting continued capital investment.

Key Products

Growth Drivers

• Improved profit margins in the Polished Steel Strip business and press plate business due to higher sales volume and improved sales prices
• Expansion into high-end areas and acquisition of new customers in the press plate business
• Expansion of partner companies and promotion of application development (including promoting adoption of Runner Stainless) in the embossing business
• Building a flexible operating structure and improving profitability through cross-departmental multi-skilling in the manufacturing division
• Implementation of various measures to achieve the FY2026 (final year of the medium-term plan) targets of consolidated net sales of ¥20 billion or more and ROS of 8.0% or more

Risks

• Risk of declining market prices in the stainless steel business (continuing as a negative factor into FY2026 (ending March 2026))
• Risk of volume decline due to changes in trends in the automotive industry (such as certification irregularities and weak sales of Japanese manufacturers in the Chinese market), explicitly cited as a factor making it difficult to achieve the medium-term plan's net sales target
• Risk of one-time inventory valuation losses arising from raw material price revisions
• Impact on demand from automotive parts, the main end-use application, due to domestic and overseas economic conditions and exchange rate fluctuations
• Risk of a structural decline in demand for Polished Steel Strip over the medium to long term due to progress in decarbonization