ENVALITH
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SUNCALL CORPORATION

5985・Standard Market・Metal Products

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SUNCALL CORPORATION5985

Business

Sun-Wa Technos... [correction] Sancall Corporation is a precision functional components manufacturer founded in 1943, operating across four segments—Japan, North America, Asia, and Europe—centered on the automotive field (Materials-related and Automotive-related Products) and the electronic information & communications field (Communications-related and Printer-related Products). Its main products include valve springs for automotive engines, EV Electrification-related Products such as busbars, shunt busbars, and current sensors, and precision connectors and adapters for optical fiber. Its principal customers are automakers led by Toyota Motor Corporation, as well as manufacturers of optical communication equipment for data centers. Consolidated net sales for FY2026 (ending March 2026) were ¥52,223 million. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

A BtoB model that provides high-quality, high-precision products through integrated production from the materials process to final products, based on the core technologies of precision plastic forming (stretching and bending) and electronic information and communications component manufacturing technology, generating revenue through continuous parts supply to automotive manufacturers and communications equipment manufacturers. The company achieves stable, localized supply through a global three-region structure spanning Japan, China, and Mexico, also meeting customers' local procurement needs.

Company Strengths

Since acquiring the SC connector license in 1995, the company has consistently handled the development, manufacturing, and supply of precision connectors and adapters for optical fiber in-house, expanding into the Japan, North America, Asia, and Europe markets. Leveraging its extensive lineup based on proprietary in-house design, Communications-related Products revenue reached ¥6,959 million (up 40.2% year on year) in FY2026 (ending March 2026).

Centered on precision plastic forming technology, the company has built an integrated production system spanning from the materials process through to final products. For automotive engine valve springs, it conducts full-length quality assurance through non-destructive testing (eddy current testing) across the entire circumference and length. For busbars, the Smart Line (an integrated automated production line) has been in full operation since fiscal 2025, achieving shorter forming tact times and labor savings.

Since 1952, the company has supplied automotive engine valve springs to Toyota Motor Corporation and several other companies, maintaining a business relationship spanning over 70 years. In FY2026 (ending March 2026), sales to Toyota Motor Corporation amounted to ¥5,543 million, accounting for 10.6% of total sales. Revenue from Automotive-related Products overall was ¥28,986 million, maintaining a stable order base.

ENVALITH's Perspective

In FY2026 (ending March 2026), the termination of production and shipment in the HDD Suspensions business (June and July 2025) eliminated the business restructuring costs (¥1,393 million), impairment loss (¥976 million), and settlement payment (¥3,955 million) recorded in the prior period, resulting in operating profit increasing sharply by 107.0% from ¥3,442 million to ¥7,125 million. As an external factor, this coincided with a rapid expansion in demand for data-center-related communications products driven by the spread of generative AI, and although net sales declined 18.3%, the gross profit margin improved to 24.2%. This was a set of results in which the effects of the structural transformation were clearly reflected in the numbers.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥50,500 million (down 3.3% year on year), operating profit of ¥5,800 million (down 18.6%), and net income attributable to owners of parent of ¥4,200 million (down 32.4%), a substantial decline in earnings. In addition to the disappearance of one-off gains associated with the HDD withdrawal, tariff impacts from US trade policy and supply chain concerns are increasing uncertainty over demand in the automotive sector. Continued growth in communications-related products and maintaining profitability in the North America segment are key to performance. The revision of the quantitative targets in the Medium-Term Management Plan 2027 also suggests downside risk relative to the initial plan.

At the end of FY2026 (ending March 2026), the equity ratio improved sharply to 59.6% (from 44.2% at the end of the prior period), net assets rose to ¥34,214 million (from ¥26,592 million), and cash and cash equivalents also increased to ¥12,048 million (from ¥9,195 million), establishing an ample financial base. On the other hand, FY2027 (ending March 2027) is forecast to see lower revenue and profit, and it has been disclosed that the quantitative targets of the Medium-Term Management Plan 2027 announced in May 2025 have been revised. The dividend is planned to be increased to ¥30 per year (payout ratio of 21.6%), which is commendable in terms of shareholder returns, but confirming the concrete progress of measures toward achieving the plan's final-year targets for FY2028 (ending March 2028) will be the focus of future investment decisions.

Growth Strategy

Growth strategy for the medium-term management plan 2027, built on three pillars: accelerating growth in communications-related and EV electrification products, and improving profitability in existing automotive businesses

Against a backdrop of the spread of generative AI and expanding data center investment, sales of Connectors and Adapters for Optical Communications to North America and Asia are being expanded. In FY2026 (ending March 2026), communications-related sales reached ¥6,959 million (up 40.2% year on year), becoming a major driver of profit in the Asia segment. Under the medium-term management plan 2027, continued investment is being promoted as part of “strengthening the foundation of growth businesses.”

The company is promoting expanded sales of EV/HV electrification-related products such as busbars and LED-related products, as well as improving the profitability of Materials-related Products and Printer-related businesses. In FY2026 (ending March 2026), sales of Automotive-related Products reached ¥28,986 million (up 2.4% year on year). Uncertainty over demand due to US tariff policy and supply chain concerns remains a challenge, and the plan for FY2027 (ending March 2027) has been formulated on the premise of a cautious outlook for the automotive sector.

Production at the contract manufacturer for HDD Suspensions ended in June 2025, and shipments to customers ended in July of the same year, completing the withdrawal from the business. The one-time losses recorded in the previous fiscal year, such as business restructuring expenses, impairment losses, and settlement payments, have disappeared, contributing significantly to the normalization of the earnings structure in FY2026 (ending March 2026). A management structure concentrating resources on the two areas of automotive and communications has been established.

Through a reduction in borrowings (a net decrease of ¥5,420 million in short-term borrowings) and the generation of ¥10,026 million in operating cash flow, the equity ratio improved to 59.6%. Dividends are planned to increase from ¥20 per share annually in FY2026 (ending March 2026) (payout ratio of 9.8%) to ¥30 per share annually in FY2027 (ending March 2027) (payout ratio of 21.6%). The company has set a policy of targeting a dividend payout ratio of 30% or more in the final year (FY2027) of the medium-term management plan 2027.

Last updated: July 19, 2026