KYOSHA CO., LTD.
6837・Standard Market・Electric Appliances
Business
Kyosha Co., Ltd. was founded in 1959 as a specialized manufacturer of Printed Wiring Boards, and has built a global production system across five locations: Japan, China, Indonesia, Vietnam, and Mexico. Its core products are Single-sided & Double-sided Printed Wiring Boards and Metal Substrates, supplied to a wide range of fields including automobiles, home appliances such as LED lighting and air conditioners, office equipment, industrial machinery, aircraft, and communication equipment. The company particularly emphasizes its strength in having the world's largest production capacity for single-sided printed wiring boards, and also operates Mounting-related Products & Services (electronic component mounting, Mounting Jigs & Mounting Transport Jigs) primarily in Japan. Consolidated net sales were ¥24,697 million (FY2026 (ending March 2026)), with the group consisting of the company and 10 subsidiaries.
Business Model
The Kyosha Group operates a manufacturing-and-sales model in which Printed Wiring Boards produced at its Japan, China, Indonesia, Vietnam, and Mexico sites are sold directly to both Japanese and non-Japanese electronics manufacturers. The China and Vietnam sites are responsible for mass-production cost competitiveness, while the domestic sites are advancing a division of roles focused on high-value-added products such as Metal Substrates and thick-copper substrates, as well as the mounting-related business. The Group maintains utilization rates at each site, partly through intra-group transactions, and funds capital expenditures using internal funds and borrowings from financial institutions.
Company Strengths
The company's annual securities report explicitly states that it has "the world's largest production capacity in the field of single-sided printed wiring boards," positioning this as a distinguishing feature not found among competitors. By manufacturing across four locations—Japan, China, Indonesia, and Vietnam—and building a global supply system, the company possesses a production scale capable of responding to demand fluctuations from major customers.
Starting with its entry into China in 1993, the company has progressively expanded its overseas footprint, adding Indonesia (1994), Mexico (established 1998, re-established 2016), and Vietnam (2019). Each location has built a system to capture regional market demand, and the consolidated order backlog for FY2026 (ending March 2026) reached ¥4,093 million (up 18.4% year on year).
The company has introduced metal substrate manufacturing equipment at its domestic Kyushu plant and is currently ramping up mass production of Metal Substrates for Automotive Use and LED lighting applications. In FY2026 (ending March 2026), the company improved the domestic segment's operating loss by ¥178 million while absorbing increased costs associated with the new mass-production ramp-up. The Mid-term Management Plan 2029 sets a target average annual revenue growth rate of 30% for the Metal Substrates and thick copper substrate business.
ENVALITH's Perspective
Performance Trend
Revenue had improved for four consecutive periods, from ¥21,337 million in FY2022 (ended March 2022) to ¥26,229 million in FY2025 (ended March 2025), but reversed course in FY2026 (ending March 2026) to ¥24,697 million (down 5.8% year on year). Operating profit also deteriorated sharply to ¥825 million (down 35.4% year on year), and net income fell to ¥78 million (down 87.3% year on year). External factors—the continued slump in domestic automobile production and a decline in automotive-related orders due to the slowdown in China's economy—weighed on revenue. Internally, increased costs associated with launching new mass production of Metal Substrates in Japan and increased equipment investment costs for production expansion in Indonesia squeezed profits. In addition, the recording of ¥109 million in prior-period corporate taxes and a sharp increase in tax burden due to a rise in deferred tax liabilities significantly reduced net income. For FY2027 (ending March 2027), the company forecasts a recovery in operating profit to ¥1,100 million, but uncertainty over the external environment remains high.
Growth Strategy
Aiming for a recovery in profitability in the first year of the next Medium-Term Management Plan through structural reform, expansion into new fields, and cost optimization
By capturing increased orders for Metal Substrates for LED lighting and electronic components as well as new orders in automotive-related fields, the company aims to eliminate the operating loss in the domestic segment (¥39 million operating loss in FY2026 (ending March 2026)). The increase in costs associated with new mass production launches is beginning to subside, and improved profitability is expected from FY2027 (ending March 2026) onward.
The company aims to complete capital investment for production expansion at PT. Kyosha Indonesia (which led to increased equipment introduction costs in FY2026 (ending March 2026)) and to expand production capacity and improve profitability in the ASEAN region. In FY2026 (ending March 2026), the segment loss widened to ¥162 million, and the challenge is to achieve early profitability through improved equipment utilization rates.
The company will pursue expanded orders in the Mounting-related business for AI servers and challenge itself to develop new markets beyond home appliances and automobiles, while continuing to optimize selling prices and improve costs. Detailed disclosure of the next Medium-Term Management Plan (currently being formulated) is scheduled for the near future, and specific numerical targets are expected to be presented.
Last updated: July 19, 2026