KeePer Technical Laboratory Co., Ltd.

Business Details

Develops, outsources manufacturing of, and sells car coating chemical products, tools, and equipment for KeePer Pro Shops, primarily located at gas stations nationwide, and for new car dealers. The business consists of four channels: aftermarket, new car market, overseas, and non-automotive, with the new car market rapidly expanding. Through technical training and certification programs, the business supports the maintenance of KeePer brand quality and the expansion of the network of shops offering the service.

Recent Overview

New car market surged 24.1% year on year, but higher advertising costs and a sharp decline in non-automotive sales led to a 4.8% decrease in segment profit

Cumulative Q3 sales for the fiscal year ending June 2026 were ¥8,227 million (up 4.4% year on year). The new car market reached ¥2,950 million (up 24.1% year on year), expanding its share of sales to 35.9%, as factory-option adoption progressed at Subaru, Volvo, and Mercedes-Benz. In March 2026, Mitsubishi Motors also began factory-option adoption. Meanwhile, the aftermarket grew only 2.6% amid consumers' heightened savings mindset due to rising fuel prices, and the 'non-automotive' category fell 58.6% due in part to a rebound from large lump-sum deliveries in the same period of the prior year. Increased TV commercial costs for Dia II KeePer pressured profit, resulting in segment profit of ¥3,157 million (down 4.8% year on year). KeePer Pro Shops in Taiwan expanded from 3 to 15 stores, but other overseas markets declined, resulting in an overall overseas decrease of 15.5%.

Key Products

Growth Drivers

• Rapid expansion of the new car market: In addition to Subaru, Volvo, and Mercedes-Benz, Mitsubishi Motors Corporation also began factory-option adoption from March 2026, with cumulative Q3 sales up 24.1% year on year and share of sales rising to 35.9%
• Introduction of LX KeePer: Launched from February 2026 as an exclusive product for new car dealers, aiming to further expand the new car market at the mainstream M-size price point of approximately ¥100,000
• Effect of the Dia II KeePer launch: The renewal of the flagship product in November 2025 and the nationwide TV commercial campaign continue to drive a recovery in aftermarket demand
• Expansion of KeePer Pro Shops in Taiwan: Rapid expansion from 3 to 15 stores, establishing a foothold for overseas expansion
• Increase in coatings applied per KeePer Pro Shop: Increased chemical sales driven by growth in the number of coatings applied for key products

Risks

• Structural shrinkage of the aftermarket: The risk that the ongoing decline in the number of gas stations, combined with soaring fuel prices and consumers' heightened savings mindset, will cause coating sales at KeePer Pro Shops to stagnate
• Dependence of the new car market on external factors: The risk that changes in the timing of vehicle deliveries due to automobile tax reform (abolition of the environmental performance tax) and reduced domestic sales and delivery volumes due to tariff issues will constrain growth in new car market sales
• Profit pressure from increased advertising expenses: The risk that expenses, such as TV commercial costs for Dia II KeePer, will grow faster than sales, causing segment profit margins to decline
• Instability of the 'non-automotive' business: The risk of large swings due to a sales structure dependent on lump-sum deliveries to major customers (cumulative Q3 recorded a 58.6% year-on-year decrease)
• Delay in overseas expansion: Sales are declining in overseas markets other than Taiwan, and establishing a KeePer LABO-style overseas expansion model remains a challenge