SEIKOH GIKEN Co., Ltd.

Business Details

A segment engaged in the development, manufacture, and sale of precision molds, precision molded products, and precision metal components. Domestically, manufacturing is handled by the Company, Fuji Denshi Kogyo, and MG Co., Ltd., with global expansion through sales subsidiaries in the U.S. and Europe. Centered on precision mold technology, injection compression molding technology, and micro-transfer technology, the segment supports mass production of precision molded products for industrial fields such as automotive, medical, and bio applications. MG, which became a consolidated subsidiary in October 2024, handles mass production molding of automotive connectors and office-use components.

Recent Overview

Record-high sales achieved on full-year contribution from MG, though EV-related parts and molds declined

Net sales in the Precision Equipment-related segment for FY2026 (ending March 2026) reached ¥9,963 million (up 8.3% year on year), a record high. This was mainly attributable to the full-year contribution from MG Co., Ltd., which became a consolidated subsidiary in October 2024, through mass production molding of automotive connectors and office-use components. Meanwhile, although sales of automotive sensor-related components remained solid, sales of components for electric vehicles and molds for mass-producing such components declined. Operating profit rose sharply to ¥1,065 million from ¥588 million in the prior period.

Key Products

Growth Drivers

• Full-year contribution from mass production molding of automotive connectors and office-use components by MG Co., Ltd., consolidated in October 2024
• Continued solid demand for automotive sensor-related components
• Creation of a new revenue source through commercialization of the in-mold coating technology "SSIMC" system sales
• Expansion of precision molded products into new industrial fields such as automotive, medical, and bio applications
• Production automation and cost reduction through joint projects with Fuji Denshi Kogyo

Risks

• Risk of continued decline in sales of electric vehicle-related components and molds for their mass production
• Risk of production adjustments by existing customers due to intensifying EV competition and expanding market share of Chinese automakers
• Decline in sales of various sensor-related components due to weak sales of domestic automakers in the Chinese market
• Uncertainty in global automobile production volumes due to industrial policies, trade friction, and geopolitical risks in various countries
• Risk of rising manufacturing costs due to soaring material and labor costs
• Risk of delays in resolving technical issues for the in-mold coating technology "SSIMC"

Business Details

Manufactures and sells optical communication components such as optical connectors, optical connector cords, optical attenuators, and ferrules, as well as manufacturing equipment such as optical connector polishing machines and inspection/measurement devices, and unpowered optical transmission devices and heat-resistant lenses. Operating a multi-site structure across Japan (headquarters), China (Hangzhou, Dalian, Seikoh Gikentech Optoelectronics (Hebi)), and Thailand (SEIKOH GIKEN THAILAND), with data centers and communication infrastructure as primary customers. Expanding rapidly against the backdrop of the spread of generative AI and accelerating data center investment.

Recent Overview

Record-high results with net sales up 86.6% on generative AI demand, and significant improvement in profit margin

Net sales in the Optical Products-related segment for FY2026 (ending March 2026) reached ¥20,124 million (up 86.6% year on year), and segment profit reached ¥6,668 million (approximately triple the ¥2,229 million in the prior period), both record highs. Accelerating data center construction driven by the spread of generative AI led to a significant increase in sales of optical connectors for data centers as well as optical connector polishing machines and inspection/measurement devices. In addition to the start of mass production of optical connectors at the Thai subsidiary SEIKOH GIKEN (THAILAND), the Company newly established Seikoh Gikentech Optoelectronics (Hebi) Co., Ltd. in Hebi City, Henan Province, China in January 2025, establishing mass production capabilities for multi-fiber optical connection components.

Key Products

Growth Drivers

• Surging demand for optical communication components (optical connectors, etc.) and manufacturing equipment (polishing machines, inspection/measurement devices) driven by the spread of generative AI and accelerating data center investment
• Diversification of supply structure and strengthening of BCP through the start of mass production of optical connectors at the Thai subsidiary SEIKOH GIKEN (THAILAND)
• Enhanced mass production capacity for next-generation multi-fiber optical connectors through the establishment of a new group company (Seikoh Gikentech Optoelectronics (Hebi) Co., Ltd.) in Hebi City, Henan Province, China
• Expansion of the product portfolio through development of next-generation products such as multi-fiber optical connectors for ultra-high-speed, high-bandwidth parallel optical transmission
• Capture of new demand accompanying progress in technology development in the power-saving and optical-electronic convergence fields

Risks

• Risk of sharp demand decline due to fluctuations in the data center investment cycle (high concentration of sales)
• Impact of geopolitical risks, trade friction, and tariff policies affecting overseas production sites in China, Thailand, and elsewhere
• Intensifying price and technology competition with global competitors in the optical communication components market
• Impact of exchange rate fluctuations (yen depreciation/appreciation) on sales and costs
• Risk of component procurement disruption due to supply chain disturbances (including inventory buildup risk indicated by the ¥1,304 million increase in inventory assets)