ENOMOTO Co.,Ltd

Business Details

The company's main products are Lead Frames for Power Semiconductors, Lead Frames for Opto Devices (for LEDs), and Connector Components, deployed for automotive, consumer equipment, and industrial equipment applications. It operates four domestic plants (headquarters, Enzan/Uenohara site, Tsugaru, and Iwate) and two overseas plants (Philippines and China), with an integrated production system covering metal pressing, staking, resin molding, and plating as its strength. Its major customer is DDK (THAILAND) Ltd., and it has developed a sales network across Asia.

Recent Overview

Achieved significant growth in both sales and profit, with net sales up 13.2% and operating profit up 166.8%

In FY2026 (ending March 2026), the company achieved net sales of ¥30,415 million (up 13.2% year on year) and operating profit of ¥1,650 million (up 166.8% year on year). Lead Frames for Opto Devices drove results with a 54.0% increase due to full-scale mass production of high-end products for consumer applications, and Connector Components also grew 19.2% on strong smartphone-related demand. On the other hand, Lead Frames for Power Semiconductors declined 5.8% due to prolonged inventory adjustments in industrial equipment applications. Front-loaded demand for automotive applications ahead of US tariff policy also contributed in the first half of the period. For FY2027 (ending March 2027), the company forecasts net sales of ¥32,000 million (up 5.2%) and operating profit of ¥2,000 million (up 21.2%).

Key Products

Growth Drivers

• Full-scale mass production of high-end LED products for consumer equipment applications in Lead Frames for Opto Devices (up 54.0% in FY2026, ending March 2026)
• Strong sales of the current model for smartphone applications and firm trends in automotive applications in Connector Components
• Enhanced production capacity through expansion of the Tsugaru plant (1st STEP of the long-term management vision)
• Improved profitability through in-house plating processes to capture added value and automation/efficiency improvements in manufacturing processes
• Improved product mix through challenges in high value-added products such as micro-connector components
• Medium- to long-term growth in demand for xEV/ADAS-related components and increased demand for electronic components accompanying AI technology innovation and advances in industrial robots
• Reduction in manufacturing costs through initiatives toward realizing smart factories

Risks

• Delayed demand recovery due to prolonged inventory adjustments, primarily for industrial equipment applications
• Uncertainty in the business environment due to heightened risk from national policies, including US trade policy (tariffs)
• Impact on crude oil/energy prices and the component procurement environment due to escalating tensions in the Middle East (conflict between the US/Israel and Iran)
• Risk of slowing global EV market growth and production cuts by automakers affecting Lead Frames for Power Semiconductors
• Uncertainty in the global economy due to geopolitical risks (situations in the Middle East, South America, etc.)
• Risk of pressure on manufacturing costs and profitability due to foreign exchange fluctuations and rising resource/energy prices
• Risk of delayed response to plating process cost reductions in the face of rising metal prices