Origin Company, Limited
6513・Standard Market・Electric Appliances
Business
Origin Company, Ltd. is a company listed on the TSE Standard Market, founded in 1938. It operates five businesses: power supply equipment (Electronics Business), system equipment (Mechatronics Business), synthetic resin coatings (Chemitronics Business), precision mechanical components (Components Business), and power semiconductors (Others). The company has 14 subsidiaries and 2 affiliated companies in Japan and overseas, with production and sales bases also established in China and Southeast Asia. Its major customers span a wide range of industrial sectors, supplying products to manufacturers of automobiles, EVs, semiconductor manufacturing equipment, telecommunications, medical, and office equipment, among others. Consolidated net sales for FY2026 (ending March 2026) are ¥26,878 million.
Business Model
A manufacturing and sales model in which each business division develops and manufactures custom products leveraging proprietary technology and sells them directly to industrial customers in Japan and overseas. The Chemitronics Business (38.5% of net sales) is the largest segment and provides stable earnings, while the Components Business (29.1%) serves as the pillar of profit contribution. Meanwhile, the Electronics Business, Mechatronics Business, and Semiconductor Devices Business continue to post losses, and the uneven distribution of the earnings structure remains a challenge.
Company Strengths
The Chemitronics Business achieved net sales of ¥10,359 million (38.5% of the overall group) and segment profit of ¥915 million (up 41.1% year on year) in FY2026 (ending March 2026). The six overseas subsidiaries in China and Southeast Asia performed steadily in cosmetics and mobility-related applications, and progress was also made in expanding market share in the domestic market. It functions as a pillar of profitability that offsets losses across the group as a whole.
The Components Business secured net sales of ¥7,813 million, segment profit of ¥843 million, and a profit margin of 10.8% in FY2026 (ending March 2026). Expansion of adopted vehicle models progressed for precision mechanical components for mobility applications, and acquisition of international quality standards was also completed at the Shanghai plant in China. In the equipment-related area, orders surged sharply at the end of the period, and a system is being put in place to capture demand carried over into the next fiscal year.
R&D expenses for FY2026 (ending March 2026) totaled ¥1,483 million. New product development was carried out in parallel across five fields: Electronics, Mechatronics, Chemitronics, Components, and Semiconductors. Concrete results were achieved across multiple fields, including acquisition of CHAdeMO certification for POCHA+, commercialization of the MPW series of products for advanced semiconductors, and commercialization of Carbon Neutrality-contributing Coatings.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥32,348 million in FY2022 (ended March 2022) and has languished for five consecutive periods, falling to ¥26,877 million in FY2026 (ending March 2026), down 6.7% year on year. Operating loss worsened at an accelerating pace to ¥943 million (versus a loss of ¥246 million in the prior period). Stalled EV adoption and restrained capital expenditure by semiconductor manufacturers directly hit the Electronics Business and Mechatronics Business. Recording of inventory valuation losses within cost of sales also weighed on profitability. With the addition of a deferred tax asset write-down (¥903 million), the net loss expanded to ¥2,220 million. Operating cash flow was negative for the second consecutive period at ¥-724 million, and the company has been compensating for this through financing activities (a net increase of ¥2,300 million in short-term borrowings).
Growth Strategy
Structural reform aimed at achieving niche-top positions in the EV, AI, and carbon neutrality markets, while balancing this with growth investments
Replacement demand for Power Supplies for Telecommunications remained solid in FY2026 (ending March 2026), but capital expenditure restraint for Power Supplies for Semiconductor Manufacturing Equipment and declining demand for Power Supplies for Medical Equipment weighed on performance. The EV charging/discharging device "POCHA V2V" continued to stimulate demand through subsidy utilization, but fell short of initial expectations. Recovery in the semiconductor and EV markets is key to improving business performance.
In FY2026 (ending March 2026), the company closed the Asaka Development Center within the Mechatronics Business, recording an impairment loss of ¥151 million and special retirement benefits of ¥180 million. Sales of the Formic Acid Reduction Vacuum Reflow Furnace (VSM) remained severely challenged, down 37.6% year on year due to the slump in the Chinese market, but the company aims to reduce losses through fixed cost cuts. Segment loss narrowed from ¥769 million in the previous fiscal year to ¥630 million.
In FY2026 (ending March 2026), overseas bases and cosmetics-related operations performed well, offsetting the impact of production cuts related to Japanese mobility manufacturers, resulting in increased revenue and a 41.1% increase in segment profit. The company will continue to expand its market share in the domestic market and develop new customers among Chinese EV manufacturers, strengthening its position as a core profit driver for the group.
In FY2026 (ending March 2026), expansion of adopted vehicle models in mobility-related applications, steady performance in leisure-related products, and a sharp increase in equipment-related orders toward the fiscal year-end contributed positively, but continued weakness in office equipment-related demand led to a 14.0% year-on-year decline in segment profit to ¥843 million. Signs of recovery in office equipment-related orders are expected to contribute to performance in the next fiscal year.
Last updated: July 19, 2026