DAIKI ALUMINIUM INDUSTRY CO.,LTD.
5702・Prime Market・Nonferrous Metals
Secondary Aluminium Alloy
The core business of Daiki Aluminium. Manufactures and sells secondary aluminium alloy ingot from aluminium scrap, domestically and overseas.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (External Customers) | ¥325,308 million | ¥294,473 million | ↑ |
| Segment Sales (Total including Internal Sales) | ¥326,802 million | ¥296,062 million | ↑ |
| Segment Profit (Operating Profit) | ¥6,697 million | ¥4,440 million | ↑ |
| Segment Assets | ¥171,307 million | ¥156,743 million | ↑ |
| Segment Profit Margin (Operating Margin) | 2.0% | 1.5% | ↑ |
Business Details
The Group's flagship business, manufacturing and selling secondary alloy ingot (blocks) using aluminium scrap as raw material. In addition to domestic operations (head office, Kyushu, and Hokkaido sites), the Group has built an Asia-centered global production system with overseas subsidiaries in Thailand, Malaysia, Indonesia, the Philippines, and India. Major customers are automobile and transportation equipment manufacturers, to whom the Group supplies recycled aluminium alloy that addresses weight-reduction needs. Segment sales for FY2026 (ending March 2026) totaled ¥326,802 million (including internal sales), making it the core segment that accounts for the majority of consolidated sales.
Recent Overview
Segment profit improved significantly, up 50.8% year on year, driven by rising LME prices and recovery in overseas earnings.
In FY2026 (ending March 2026), both secondary aluminium alloy ingot and merchandise/raw material sales increased against a backdrop of rising LME prices driven by U.S. interest rate cuts, China's aluminium production restrictions, and heightened tensions in the Middle East. Domestically, although raw material costs rose due to persistently high scrap prices caused by soaring export prices, this was offset by solid demand for products and merchandise. Overseas, the Group advanced price corrections and material substitution, moving toward a recovery in earnings. Segment profit improved significantly to ¥6,697 million from ¥4,440 million in the prior period.
Key Products
Growth Drivers
- Rising LME (London Metal Exchange) aluminium prices leading to higher selling prices for products and merchandise
- Resilient demand from the automobile and transportation equipment sectors (gradual recovery in the domestic market)
- Earnings recovery at overseas subsidiaries (Thailand, India, etc.) through progress in price corrections and material substitution
- Expected expansion in demand for recycled alloy for hybrid vehicles, EVs, and fuel cell vehicles
- Diversification of production sites in emerging Asian countries (Thailand, Indonesia, India, etc.)
Risks
- Rising raw material costs due to persistently high aluminium scrap prices and narrowing spreads at overseas subsidiaries
- Rising energy prices and supply chain disruption due to heightened Middle East tensions and the risk of a Strait of Hormuz blockade, and the possibility of automakers cutting production
- Impact on the automobile industry from the Trump administration's trade policy (additional tariffs on aluminium products and automobiles)
- Risk of structural transformation in the automobile industry due to intensifying competition in the EV market and changes in subsidy policy
- Foreign exchange risk (erosion of overseas subsidiaries' earnings due to yen appreciation) and risk of impairment of overseas subsidiaries' fixed assets
- Difficulty in raw material procurement due to declining generation of aluminium scrap and increased demand for scrap as a low-carbon raw material
Last updated: June 18, 2026