ENVALITH
原田工業株式会社 logo

HARADA INDUSTRY CO.,LTD.

6904・Standard Market・Electric Appliances

Official website
原田工業株式会社 logo
HARADA INDUSTRY CO.,LTD.6904

Business

Harada Industry Co., Ltd. was established in 1958 as a manufacturer specializing in automotive antennas. The company manufactures and sells Automotive Radio Antennas (pole type, shark fin type, etc.) as its core products, along with Automotive TV Antennas, amplifiers, ETC Antennas, and Relay Cables. It has built a four-region operating structure comprising domestic sales (Japan), manufacturing and sales (Asia: China, Vietnam, and the Philippines), North & Central America (manufacturing in Mexico, sales in the US), and Europe (UK and Germany), operating as a group that includes 12 subsidiaries and 1 affiliated company. Its main customers are domestic and overseas automotive OEM manufacturers, led by Toyota Motor Corporation. Consolidated net sales for FY2026 (ending March 2026) were ¥42,192 million. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Vehicle-mounted antennas produced at manufacturing bases in Asia (Dalian, Vietnam, Philippines) and Mexico are supplied to automotive OEM manufacturers through sales subsidiaries in Japan, North & Central America, and Europe. As shown by the structure in which internal sales from manufacturing bases (intra-Asia segment internal sales of ¥18,507 million) significantly exceed external sales, the core of profitability lies in concentrated production in low-cost regions and efficient supply to each market. R&D is conducted at four locations—Japan, Germany, the United States, and China (Shanghai)—driving the development of CASE-compatible products.

Company Strengths

Since its founding in 1958, the company has built manufacturing bases in China (Dalian, Shanghai), Vietnam, the Philippines, and Mexico, and sales/development bases in the US, UK, and Germany. With production of ¥29,220 million in the Asia segment and ¥12,050 million in North & Central America, the company has established a global multi-site manufacturing structure, giving it a geographic and organizational advantage that competitors would find difficult to replicate in a short period.

After posting an operating loss of ¥1,163 million in FY2022 (ending March 2022), the company promoted cost structure reforms including the functional reorganization of its Chinese subsidiary. Operating profit in FY2026 (ending March 2026) reached ¥2,398 million (up 38.7% year on year), the interest coverage ratio improved to 15.0x (from 1.9x in the previous period), and the equity ratio improved to 38.2% (from 34.4% in the previous period), confirming the strengthening of its financial position in numerical terms.

The company has established R&D departments in Japan, Germany, the US, and China (Shanghai), with R&D expenses of ¥876 million in FY2026 (ending March 2026). It is advancing development of ADAS-related antennas, 5G-compatible antennas, C-V2X communication antennas, and multi-GNSS-compatible antennas, and has achieved mass production launch of ITS Connect antennas and mass production delivery of high-speed data transmission cables.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales came to ¥42,192 million (down 5.9% year on year), affected by production cutbacks in the European, North & Central American, and Chinese markets, but operating profit improved substantially to ¥2,398 million (up 38.7% year on year) and ordinary profit rose to ¥2,311 million (up 73.9% year on year). The operating margin reached 5.7%, the highest level in the past five fiscal years. This was driven by the effect of functional reorganization at the Chinese subsidiary (operating profit in the Asia segment up 402.2%) and the turnaround to profitability in Europe (from an operating loss of ¥147 million in the previous period to a profit of ¥316 million in the current period), confirming the effectiveness of the profitability structure reform.

Profit attributable to owners of parent improved to ¥433 million (up 160.9% year on year), but against profit before income taxes of ¥1,745 million, total income taxes amounted to ¥1,311 million, resulting in an extremely high effective tax burden ratio of over 75%. In addition, business structure improvement expenses of ¥563 million were recorded as an extraordinary loss, which is weighing on net profit due to structural reform costs. It should be noted that achieving the FY2027 (ending March 2027) forecast of net profit of ¥600 million (up 38.3% year on year) is premised on normalization of the tax burden and the elimination of extraordinary losses.

The North & Central America segment saw a significant decline in external sales to ¥12,343 million (down 15.2% year on year), with operating profit of just ¥7 million (down 97.6% year on year), effectively representing a near-disappearance of profitability. As an external factor, concerns over economic downside pressure from US tariff policy are affecting the automotive industry as a whole, directly exposing the company's North & Central America business to risk. The FY2027 (ending March 2027) forecast anticipates further revenue decline to ¥39,000 million (down 7.6% year on year), meaning that the scenario for recovery in North & Central America will determine whether the earnings forecast can be achieved.

Growth Strategy

Establish a stable earnings base through three pillars: responding to CASE trends, cost structure reform, and balance sheet slimming

By expanding vehicle-mounted antenna products supporting Connected, Autonomous, Shared, and Electric trends, the company aims to capture new demand and expand its top line. It is also promoting the expansion of peripheral and new businesses in parallel, aiming to diversify its earnings base.

The company continues to pursue region-specific cost ratio reduction measures, including the functional reorganization of its Chinese subsidiary (which contributed to a 402.2% increase in operating profit in the Asia segment in FY2026 (ended March 2026)) and the turnaround to profitability in Europe (from a loss of ¥147 million in the prior period to profit of ¥316 million in the current period). The operating profit margin has improved to 5.7%.

Total assets were reduced to ¥35,843 million as of the end of FY2026 (ended March 2026) (down ¥3,089 million from ¥38,932 million at the end of the prior period). Financial soundness improved through reductions in short-term borrowings (from ¥16,534 million to ¥14,067 million) and accelerated collection of trade receivables (notes and accounts receivable, etc. decreased by ¥2,250 million). The equity ratio improved to 38.2% (from 34.4% in the prior period).

The dividend forecast for FY2027 (ending March 2027) has been raised to ¥10.00 per share (an increase of ¥2.50 from ¥7.50 in the current period). This dividend increase policy reflects improved profitability, with a payout ratio planned at 35.3%. While maintaining a stable dividend as its basic policy, the company is also aiming to expand returns in line with business performance.

Last updated: July 19, 2026