SMK Corporation
6798・Prime Market・Electric Appliances
CS Division (Connection System Division)
SMK's core profit segment, manufacturing and selling connectors and jacks
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (full year) | ¥22,520 million | ¥22,156 million | ↑ |
| Operating profit (full year) | ¥1,187 million | ¥1,534 million | ↓ |
| Operating margin (full year) | 5.3% | 6.9% | ↓ |
| Segment assets | ¥13,718 million | ¥12,972 million | ↑ |
| Depreciation (full year) | ¥1,701 million | ¥1,487 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥1,554 million | ¥1,363 million | ↑ |
Business Details
A segment engaged in the manufacture and sale of coaxial connectors, board-to-board connectors, FPC connectors, and jacks. It supplies products to four markets—automotive, home appliances, industrial machinery, and information & communications—accounting for approximately 46.7% of the Group's total sales of ¥48,204 million. In FY2026 (ending March 2026), it functioned as the Group's only segment with operating profit, as strength in the automotive, home appliance, and industrial machinery markets offset weakness in the information & communications market.
Recent Overview
Sales increased 1.6% year on year, but operating profit declined 22.6%, resulting in lower profitability
In FY2026 (ending March 2026), the CS Division secured sales growth, with sales of ¥22,520 million (up 1.6% year on year). In the automotive market, camera- and electrical component-related demand remained firm, with additional growth from battery-related and two-wheeled vehicle applications; in the home appliance market, amusement- and digital camera-related demand was strong; and in the industrial machinery market, renewable energy-related demand performed well. On the other hand, in the information & communications market, demand for smartphone applications declined, falling below the prior-year level. Operating profit was limited to ¥1,187 million (down 22.6% year on year), and the operating margin declined from 6.9% to 5.3% against a backdrop of rising costs.
Key Products
Growth Drivers
- Automotive market: steady growth in camera- and electrical component-related demand, plus expansion in battery-related and two-wheeled vehicle (including E-Bike) applications
- Home appliance market: growing demand for amusement-related (gaming device) and digital camera-related applications
- Industrial machinery market: year-on-year increase driven by strong renewable energy-related demand
- Expected capture of new demand from expansion in AI server and data center-related fields for industrial machinery and information & communications applications
- Concentration of resources into growth areas and withdrawal/downsizing of unprofitable businesses under the structural reform program
Risks
- Continued weakness in the information & communications market: demand for smartphones and tablets declined, with full-year FY2026 (ending March 2026) sales in the information & communications market sharply lower at ¥5,824 million (down 16.2% year on year)
- Risk of stagnation in the automotive market due to a global slowdown in vehicle sales and weakening EV demand
- Uncertainty over demand due to concerns over economic downturn from US tariff policy and geopolitical risks (the conflict in Ukraine and the situation in the Middle East)
- Impact on local production and sales from slowing economic growth in China
- Risk of a heavier cost structure and declining profit margins due to rising depreciation expenses (from ¥1,487 million to ¥1,701 million)
- Risk of deteriorating profitability if the recovery in the information & communications market continues to be delayed
Last updated: June 22, 2026