OKAYA ELECTRIC INDUSTRIES CO.,LTD.

Business Details

This segment manufactures and sells Capacitor Products that protect equipment from electromagnetic noise flowing in and out through commercial power supplies. Major customers include air conditioning equipment, industrial equipment, and automotive-related manufacturers. Domestic manufacturing subsidiaries and overseas manufacturing subsidiaries (Okaya Hong Kong Co., Ltd., Dongguan Okaya Electronics Co., Ltd., OKAYA LANKA, etc.) manufacture and supply products to the Company. The segment is expanding its lineup of High-Temperature/High-Humidity Resistant Capacitors and developing High-Frequency Capacitors, aiming to expand into industries and fields that were previously difficult to enter.

Recent Overview

Net sales expanded to 121% of the prior period due to increases in overseas air conditioning and industrial equipment demand, but the loss widened.

Net sales of Capacitor Products in FY2026 (ending March 2026) increased significantly to ¥4,713 million (121% of the prior period). This was mainly due to increases in overseas demand for air conditioning equipment and industrial equipment, the segment's core fields. On the other hand, the segment loss widened to ¥486 million (compared with a loss of ¥447 million in the prior period). Temporary cost increases associated with the launch of new products and the reconstruction of production lines pressured profitability. Segment assets decreased year-on-year to ¥5,098 million.

Key Products

Growth Drivers

• Continued gradual recovery in demand for overseas air conditioning equipment
• Increasing trend in sales for automotive-related applications
• Expansion of new product lineup including High-Temperature/High-Humidity Resistant Capacitors and High-Frequency Capacitors
• Productivity improvement and cost reduction effects after completion of production line reconstruction
• Measures to strengthen earning power under the 12th Medium-Term Management Plan (FY2027 (ending March 2027) to FY2029 (ending March 2029))

Risks

• Delayed recovery due to prolonged inventory adjustments for industrial equipment applications
• Profit pressure from persistently high raw material procurement costs
• Continued temporary cost increases associated with new product launches and production line reconstruction
• Residual impact of the reversal from the sharp sales increase in prior years
• Uncertainty in overseas demand due to China's economic slowdown, geopolitical risk, and U.S. trade policy
• Pricing pressure from intensifying competition with Asian manufacturers