KOHOKU KOGYO CO.,LTD.

Business Details

Manufactures and sells lead terminals, a key component of aluminum electrolytic capacitors used in a wide range of applications including automotive (in-vehicle), information and communication equipment including AI servers, industrial machinery, and home appliances. In addition to all Japanese capacitor manufacturers, the company is expanding transactions with Taiwanese, Korean, and Chinese manufacturers, achieving high quality and stable supply through an integrated production process of welding, pressing, cleaning, and chemical conversion combined with proprietary core technologies. The company has identical integrated process equipment at its domestic headquarters and three overseas plants (Dongguan, China; Malaysia; and Suzhou).

Recent Overview

Driven by high-function products for AI servers, achieved substantial growth with net sales up 27.2% and operating profit up 82.4%

In cumulative Q1 FY2026 (ending December 2026), net sales reached ¥2,516 million (up 27.2% year on year), and segment profit reached ¥209 million (up 82.4% year on year). Against the backdrop of a booming AI server and data center market, adoption of high-function lead terminals for hybrid capacitors and conductive polymer capacitors expanded. Although there were negative factors such as delayed recovery in the European automotive market and a downturn in the Chinese EV market, these were offset by ADAS electrification and hybrid vehicle market expansion, resulting in overall growth in both revenue and profit. The company also continues to work on production efficiency improvements, such as capacity expansion at the Dongguan plant in China and OEE improvement.

Key Products

Growth Drivers

• Surge in orders for high-value-added lead terminals (leakage current countermeasure products, low-resistance products, etc.) for high-function capacitors, driven by the expansion of the generative AI and data center market
• Increased demand for automotive electronics driven by progress in ADAS electrification and expansion of the hybrid vehicle market
• Progress in profit structure reform through improvement of unprofitable orders, yield improvement, and utilization of ROIC indicators
• Strengthening of overseas production bases, including capacity expansion at the Dongguan plant in China and expansion of production items at the Malaysia plant, to establish a robust supply system
• Improved product competitiveness through development of next-generation laser welding technology

Risks

• Risk of demand fluctuation due to delayed recovery in the European automotive market and U.S. trade policy (tariffs)
• Risk of demand fluctuation due to a downturn in sales in the Chinese EV market and changes in subsidy policy
• Risk of weak demand for general-purpose products due to sluggish consumption in the consumer electronics market stemming from China's real estate downturn and other factors
• Impact of exchange rate fluctuations (yen depreciation/appreciation) on export profitability and overseas production costs
• Uncertainty over whether profit structure reform can achieve stable maintenance of an operating margin of 10% or higher (cumulative Q1 operating margin was 8.3%)