Tensho Electric Industries Co., Ltd
6776・Standard Market・Chemicals
Business
Tensho Electric Industries Co., Ltd., founded in 1936, is a long-established plastic molding manufacturer listed on the Tokyo Stock Exchange as an independent company. Domestically, Tensho Electric Industries itself (5 domestic plants) and its consolidated subsidiary Ryuma Plastics Co., Ltd. handle the manufacture and sale of Automotive Parts, Logistics & Industrial Materials, Mechanical Components, and Molds. Overseas, the company operates Tensho Plastics (Changzhou) Co., Ltd. in Changzhou (Liyang City), China, which manufactures and sells Logistics & Industrial Materials and Mechanical Components. Major customers include SUBARU CORPORATION (21.6% of net sales), Toyota Boshoku Corporation (11.2%), and Sanko Co., Ltd. (6.2%), with automotive-related companies accounting for the majority of sales. The company also operates a real estate leasing business in Sagamihara City and Nihonmatsu City. Consolidated net sales for FY2026 (ending March 2026) were ¥21,877 million.
Business Model
The company adopts a vertically integrated made-to-order manufacturing model that handles everything from mold design and manufacturing to injection molding, processing, and painting. The core Japan Molding-related Business (over 96% of net sales) manufactures Automotive Parts, Logistics & Industrial Materials, and Mechanical Components, delivering directly to major manufacturers such as SUBARU and Toyota Boshoku. The Real Estate-related Business generates stable rental income (operating margin of 82.4%) from leased buildings in Sagamihara City, forming a structure that complements fluctuations in earnings from the manufacturing business.
Company Strengths
The company maintains an integrated in-house production system covering everything from mold design and manufacturing to injection molding, processing, and painting. Its technical department collaborates with customers' development departments from the product design stage, actively engaging in proposal activities that function as an entry barrier by raising customers' switching costs. It combines a five-plant domestic production network with the production capacity of Tatsumai Plastic Co., Ltd. to offer high-mix production capability.
Interest-bearing debt was continuously reduced from ¥5,274 million in the 96th fiscal year to ¥3,774 million in the 100th fiscal year (FY2026 (ending March 2026)), while the equity ratio rose from 33.1% to 52.4% over the same period. The interest coverage ratio stood at a high 41.9x in FY2026 (ending March 2026), reflecting strong financial safety, and the company maintains cash-generating capacity with operating cash flow of ¥1,902 million exceeding capital expenditures of ¥1,124 million.
The Real Estate-related Business, comprising Building Leasing (Sagamihara City) (leased to IRIS PLAZA Co., Ltd.) and Land Leasing (Nihonmatsu City), achieved net sales of ¥284 million, segment profit of ¥234 million, and an operating margin of 82.4% in FY2026 (ending March 2026). With a low-cost structure involving zero new capital expenditures and depreciation expenses of only ¥6 million, it serves as a stable source of cash generation that complements fluctuations in the performance of the manufacturing business.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), net sales came to ¥21,877 million (down 21.5% year on year), operating profit was ¥723 million (down 20.9%), and profit attributable to owners of parent was ¥504 million (down 60.1%), with declines at all profit levels. The sharp drop in net sales was mainly due to the deconsolidation of Sanko America Corporation (which contributed ¥7,247 million in the prior period), while the continuing Japan Molding-related Business recovered with a 6.2% increase in sales. Recording an equity-method-related loss of ¥258 million as an extraordinary loss significantly weighed down net income. As external factors, the end of production adjustments in the automotive industry supported the recovery of the Japan Molding-related Business, while elevated raw material and logistics costs continue to constrain the improvement in profitability. Looking at the trend over the past five fiscal years (operating profit: ¥225 million → ¥604 million → ¥1,062 million → ¥914 million → ¥723 million), profit has been declining since peaking in FY2024 (ended March 2024), and whether this trend can be reversed will be tested against the FY2027 (ending March 2027) forecast of net sales of ¥22,000 million and operating profit of ¥850 million.
Growth Strategy
Aiming for sustainable growth through three pillars: profitability recovery in the Japan Molding-related Business, establishment of stable profitability in the China business, and financial soundness improvement
The company will strengthen sales efforts, benefiting from the end of production adjustments in the automotive industry, while continuously working on process improvement, production efficiency gains, and cost reduction. In FY2026 (ending March 2026), segment profit improved significantly, rising 101.0% year on year to ¥481 million. For the full year of FY2027 (ending March 2026), the company targets operating profit of ¥850 million (up 17.1% year on year).
The company is focusing on expanding domestic Chinese sales of Logistics & Industrial Materials and Mechanical Components. In FY2026 (ending March 2026), segment profit turned positive at ¥7 million, a turnaround from a loss of ¥28 million in the previous fiscal year. The company will continue to stabilize its earnings base through cost reduction and improved production efficiency.
The company will maintain and expand earnings contributions through equity-method investment income (¥114 million in FY2026, ending March 2026) from Sanko America Corporation, which became an equity-method affiliate following a third-party allotment of new shares in January 2025. Expansion of sales of Logistics & Industrial Materials and Mechanical Components to North America will contribute to the earnings growth of this equity-method investee.
The company will continue to steadily reduce interest-bearing debt (repayment of long-term borrowings of ¥1,651 million, new borrowings of ¥1,100 million) and improve its equity ratio to 52.4%. The company will maintain a stable dividend of ¥5 per share, with the same level planned for FY2027 (ending March 2026). The dividend payout ratio remains at a low level of 16.9% in FY2026 (ending March 2026), leaving room for expanded shareholder returns as earnings recover.
Last updated: July 19, 2026