ENVALITH
大豊工業株式会社 logo

TAIHO KOGYO CO., LTD.

6470・Standard Market・Machinery

Official website
大豊工業株式会社 logo
TAIHO KOGYO CO., LTD.6470

Business

Taiho Kogyo, founded in 1939 and headquartered in Toyota City, Aichi Prefecture, is a comprehensive manufacturer of automotive parts and manufacturing equipment. In its core Automotive Parts Business, the company manufactures sliding bearings (Bearing Products (Metal Bearings, Bushings, etc.)), System Products such as vacuum pumps, aluminum Die-Cast Products, and metal head gaskets, supplying them to automakers in Japan and overseas, led by Toyota Motor Corporation. The company operates manufacturing sites in the United States, Hungary, South Korea, China, Indonesia, and Thailand, establishing a global production and sales structure. In the Automotive Manufacturing Equipment Business, the company handles Conveyance Equipment, Precision Molds, Welding Machines, and other products. Of consolidated net sales of ¥119,378 million, the Automotive Parts Business accounts for approximately 89%.

Business Model

The Automotive Parts Business adopts a build-to-forecast production approach, mass-producing bearings, die-cast products, gaskets, and similar items for OEM supply. Sales to Toyota Motor Corporation amounted to ¥32,531 million (27.2% of the total), with continuous supply to specific customers forming the earnings base. The Automotive Manufacturing Equipment Business operates on a build-to-order basis, delivering precision molds, conveyance equipment, and similar items to automakers. The company invests ¥3,472 million in R&D expenses to deepen its tribology technology, and its structure aims to improve profitability by shifting toward higher value-added products.

Company Strengths

Established a production system for four product groups—plain bearings, System Products, die-cast, and gaskets—across overseas bases in the U.S., Hungary, China, South Korea, Indonesia, and Thailand. Product diversification has been achieved with Bearing Products (Metal Bearings, Bushings, etc.) at ¥47,405 million, System Products at ¥22,261 million, Die-Cast Products at ¥13,620 million, and Gasket Products at ¥18,042 million, avoiding excessive dependence on any single product.

Mass production of PCU inverter cases and converter cases began in 2020, and sales of electrification-compatible die-cast products expanded 12.6% year on year to ¥13,620 million. Development of battery terminals utilizing clad production technology is also underway, and a track record has been accumulated for the product lineup for HEVs and BEVs.

Aluminum casting lines were introduced at Changzhou Hengye Bearing Material Co., Ltd., which became a wholly owned subsidiary in 2012, establishing a fully integrated production system from materials to processing. Competitiveness has been strengthened by producing new bearings (thick-film resin coating, new solid bushings, etc.) locally for the Chinese market, leading to expanded deliveries to domestic and overseas automakers.

ENVALITH's Perspective

Operating profit for FY2026 recovered to ¥2,589 million, up 323.8% year on year; however, the company recorded an impairment loss of ¥9,168 million as an extraordinary loss, resulting in a net loss attributable to owners of the parent of ¥5,967 million, marking a significant loss for the second consecutive year. The decline in profitability of fixed assets continues, and the remaining impairment risk is an important point of attention for investors.

Capital expenditures for the period were significantly curtailed to ¥5,079 million compared to the previous period, while cash flow from operating activities secured ¥8,467 million (up 35.6% year on year). On the other hand, the current portion of long-term borrowings due within one year increased by ¥14,111 million, raising the securing of short-term repayment funds as a financial challenge.

While growth products such as electrified die-cast products and vacuum pumps are driving sales, the mainstay Bearing Products (Metal Bearings, Bushings, etc.) segment (¥47,405 million) remains centered on engine-related applications, and changes in demand structure accompanying the progress of automotive electrification may affect medium- to long-term profitability. The pace of transition to electrification-compatible products is an important point to monitor, as it will determine the sustainability of business performance.

Growth Strategy

Strengthening the profitability of existing businesses and maximizing corporate value through technology transfer into electrification and new domains

Enhance the profit base of existing businesses through development process reform and productivity improvements driven by DX promotion, reducing depreciation expenses through progress in rationalization efforts and restraint on capital investment. In FY2026 (ending March 2026), operating profit of ¥2,589 million was achieved against a target of ¥2,300 million, exceeding the target.

Continue expanding mass production of PCU inverter cases and converter cases, while promoting the development of battery terminals utilizing clad production technology. Development of precision fin heat sinks for power modules has also been initiated.

Development of heat sinks for power modules has begun as a power conversion component. For FCEVs, a power generation evaluation device has been introduced to establish a design proposal and contracted evaluation framework, and inquiries have already been received.

Leveraging know-how in production technology and equipment design, the company is developing "AquaBraina," a compact, high-performance treatment system for plating and surface treatment wastewater. Demonstration testing and market validation are underway, with the aim of expanding into new business domains beyond automotive.

An open and flat organizational structure has been established at Shinohara BASE, promoting projects driven by young employees and the creation of new value. The company is building the foundation for executing its business strategy through active investment in people and enhanced engagement.

Last updated: July 19, 2026