SUMIDA CORPORATION
6817・Prime Market・Electric Appliances
Asia Pacific Business
Core segment accounting for approximately 59% of group sales. Coil manufacturing and sales business with China, Asia, and North America as its main markets.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external customers) | ¥22,589 million (Q1 FY2026) | ¥22,360 million (Q1 FY2025) | ↑ |
| Segment profit | ¥645 million (Q1 FY2026) | ¥821 million (Q1 FY2025) | ↓ |
| Segment profit margin | 2.6% (Q1 FY2026) | 3.4% (Q1 FY2025) | ↓ |
| Revenue (total including intersegment) | ¥24,545 million (Q1 FY2026) | ¥23,879 million (Q1 FY2025) | ↑ |
Business Details
The Asia Pacific Business operates manufacturing facilities in Vietnam, Thailand, Japan, North America, and elsewhere, with China serving as its main production base, conducting research, development, design, manufacturing, and sales of coil-related components and module products for automotive, industrial, and home appliance applications. In the first quarter of FY2026 (ending March 2026), revenue from external customers was ¥22,589 million, accounting for approximately 59% of the consolidated total. In China, the optimization of manufacturing overhead costs (the final year of a three-year plan) is progressing as planned, and efforts to improve profitability are being advanced while maintaining a local-for-local production system.
Recent Overview
Revenue increased 2.8% year on year, but segment profit decreased 21.4%, resulting in lower profitability.
In the first quarter of FY2026 (ending March 2026), automotive-related sales in China and other parts of Asia grew, resulting in revenue of ¥24,545 million (¥22,589 million from external customers), up 2.8% year on year. On the other hand, North America experienced a decline due to the reversal of the prior year's front-loaded demand caused by tariff risk. Segment profit was ¥645 million, down 21.4% year on year, and the profit margin declined to 2.6%. The optimization of manufacturing overhead costs in China has entered the final year of the three-year plan and is progressing as planned.
Key Products
Growth Drivers
- Continued growth in xEV-related (including HV and PHEV) automotive demand in China and other parts of Asia
- Strong performance of robotics-related and medical-related industrial demand in other parts of Asia
- Steady demand for home appliance-related products such as notebook PCs, tablets, and smartphones accompanying the spread of generative AI-equipped models
- Profitability improvement through optimization of manufacturing overhead costs in China (final year of the three-year plan)
- Capturing demand for power supply and cooling-related products for high-load servers accompanying expanding infrastructure investment for AI data centers
- Expanding production capacity as an export base to the US and Europe utilizing other Asian sites such as Vietnam
- Strengthening sales in new fields such as next-generation vehicles, energy storage, drones, and robots in China
Risks
- Risk of a decline in final demand and a reversal of front-loaded demand due to fluctuations in US tariff policy in North America
- Downward price pressure on the entire supply chain due to excessive price competition intensifying in the Chinese EV market
- Risk of continued weakness in automotive-related demand from European manufacturers in China
- Foreign exchange risk from fluctuations in the Chinese yuan, Hong Kong dollar, US dollar, etc. (a weaker yuan and Hong Kong dollar are factors that reduce profit)
- Geopolitical risk and export regulation risk associated with concentrated production at sites in China and Asia
- Risk of rising energy and raw material prices and increased maritime logistics costs due to tensions in the Middle East
- Risk of rising interest rates given that approximately 80% of borrowings are at variable interest rates
Last updated: March 16, 2026