Meiko Electronics Co., Ltd.

Business Details

This is effectively the only reportable segment of the Group. It designs, manufactures, and sells a diverse range of electronic circuit boards, including through-hole multilayer boards, Build-up Boards, semiconductor package boards, Module Boards, flexible boards, and heat-dissipation boards. These are supplied for a wide range of applications including automotive, smartphones/tablets, information and communications (AI servers, satellite communications), and industrial equipment, and the segment also operates the Electronic Equipment Business (Contract Development). Production facilities are centered in Vietnam, China, and Japan.

Recent Overview

Both net sales and profit reached record highs, with significant increases in revenue and profit also forecast for the next fiscal year

In FY2026 (ending March 2026), net sales reached ¥240,574 million (up 16.3% year on year), operating income ¥24,572 million (up 28.8%), ordinary income ¥26,488 million (up 41.2%), and profit attributable to owners of parent ¥19,782 million (up 32.5%), with all metrics setting new record highs. Contributing factors included a substantial increase in boards for satellite communications, expansion of Build-up Board sales, and improved plant utilization rates and productivity. For FY2027 (ending March 2027), net sales are forecast at ¥320,000 million (up 33.0%) and operating income at ¥38,000 million (up 54.6%), incorporating the start of production at the fourth plant in Vietnam and the Hoa Binh plant. Additionally, as a subsequent event, a new subsidiary (Meiko Electronics Yen Quang Co., Ltd., with capital of US$50 million) was established in Phu Tho Province, Vietnam on April 22, 2026, to further increase production capacity.

Key Products

Growth Drivers

• Continued expansion of demand for boards used in AI servers, data centers, and satellite communications
• Improved profitability driven by a substantial increase in sales of high value-added Build-up Boards
• Increased production capacity through the start of production at the fourth plant in Vietnam and the Hoa Binh plant
• Medium- to long-term production capacity expansion through the establishment of a new subsidiary (Meiko Electronics Yen Quang Co., Ltd.) in Phu Tho Province, Vietnam
• Increased orders and new customer acquisition for autonomous driving and driver-assistance projects in automotive boards
• Improved productivity and profitability through plant automation, labor-saving measures, and yield improvements
• Expansion of the EMS business and product lineup through the acquisition of Nagano FCL Component Co., Ltd. as a subsidiary

Risks

• Risk of supply chain disruption and impact on customer demand due to U.S. tariff increase policies
• Risk of demand fluctuation in the automotive market (uncertainty regarding automotive board demand due to EV strategy reviews)
• Risk of surging resource prices, raw material costs, and energy prices
• Impact on production facilities in China and Vietnam from heightened geopolitical risk
• Foreign exchange risk (impact on production costs and sales in Vietnam and China)
• Risk of increased financial leverage due to aggressive capital expenditure (acquisition of property, plant and equipment of ¥49,835 million), with the equity ratio declining to 40.6%
• Uncertainty regarding the outlook due to geopolitical tensions, including escalating tensions in the Middle East
• Risk of delayed startup or failure to achieve target utilization rates at new plants (the fourth plant in Vietnam, the Hoa Binh plant, and the new plant in Phu Tho Province)