CK SAN-ETSU Co.,Ltd.
5757・Prime Market・Nonferrous Metals
Copper Rolling & Extrusion
Core business manufacturing brass rods, wire, and tubes, accounting for approximately 88% of consolidated Group sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) | ¥131,442 million | ¥106,407 million | ↑ |
| Segment profit | ¥11,177 million | ¥7,089 million | ↑ |
| Segment assets | ¥78,509 million | ¥65,539 million | ↑ |
| Sales volume | 100,389 tons | 89,884 tons | ↑ |
| Segment profit margin | 8.5% | 6.7% | ↑ |
Business Details
This segment's main products are Brass Rods, Brass Wire, and Brass Tubes, supplied as materials across a broad range of industries including automotive parts, home appliances, and Faucet Fittings. Production sites include Sanetsu Metal (Tonami Plant, Takaoka Plant, and Shin-Nitto Plant), Nihon Shindo (Sakai Plant), and Mitani Shindo (Head Office Plant). Effective April 1, 2025, Mitani Shindo Co., Ltd. was consolidated as a subsidiary, significantly expanding sales volume and revenue scale. The segment's performance structure is heavily influenced by copper market trends.
Recent Overview
Sales and profit increased significantly due to the consolidation of Mitani Shindo as a subsidiary and the surge in copper market prices.
Effective April 1, 2025, the company consolidated Mitani Shindo Co., Ltd. (acquiring a voting rights ratio of 75.58% at an acquisition cost of ¥2,733 million) as a subsidiary, expanding sales volume by 11.7% year on year to 100,389 tons. Sales reached ¥131,442 million (up 23.5% year on year), and segment profit rose sharply to ¥11,177 million (up 57.7% year on year). The surge in LME prices combined with yen depreciation pushed the copper benchmark price up to ¥2,190,000 per ton, boosting both sales and profit. On the other hand, a derivative loss of ¥8,936 million recorded as a non-operating expense to hedge against market volatility risk significantly weighed on ordinary profit.
Key Products
Growth Drivers
- Expansion of sales volume and revenue scale through the consolidation of Mitani Shindo as a subsidiary (effective April 1, 2025, with the voting rights ratio ultimately raised to 94.06%)
- Synergy effects from the mutual utilization of production technology and know-how between Mitani Shindo and Sanetsu Metal (OEM production, joint purchasing, and production site consolidation)
- Productivity improvements and realization of a night-shift-free operation through the introduction of state-of-the-art horizontal continuous casting equipment at the Tonami Plant
- Expansion of high-value-added products through capturing demand for Precision Parts such as Backing Plates for semiconductor manufacturing equipment
- Rise in product selling prices amid elevated copper market prices (next-period earnings forecast assumes electrolytic copper at ¥2,110 thousand per ton)
- Product differentiation through patented environmentally friendly alloy technology and the deployment of one-of-a-kind products in specific markets
Risks
- Risk from fluctuations in international copper and zinc market prices (a market decline could result in inventory valuation losses and a decrease in sales)
- Risk of profit and loss volatility from derivative transactions (in FY2026 (ending March 2026), derivative losses of ¥8,936 million and valuation losses of ¥251 million significantly weighed on ordinary profit)
- Risk of maturation and gradual demand decline in the domestic copper rolling and extrusion market (domestic demand is expected to continue gradually declining)
- Impact on resource and energy prices and trade from geopolitical risks such as U.S. protectionist trade policy and the closure of the Strait of Hormuz
- PMI risk related to the integration and realization of synergies with Mitani Shindo (delays in integrating production technology and know-how, or unexpected costs)
- Inventory risk and increased working capital due to a significant increase in inventories (work in process of ¥16,156 million, raw materials of ¥12,169 million, etc.)
Last updated: June 24, 2026