SANKO CO., LTD.

Business Details

The Company Group consists of a single segment, the Precision Parts Manufacturing and Unit Processing Business. Its flagship products are Automotive-Related Products (safety-related components, in-vehicle electronic equipment, etc.), which account for approximately 74% of net sales, followed by Housing Equipment-Related Products (smart meters, etc.), Digital Home Appliance-Related Products (digital cameras, etc.), and Office Equipment-Related Products (printers, etc.). Its major customers are Sumitomo Wiring Systems, Ltd. and DENSO Corporation. In addition to its domestic manufacturing sites, the Company has a consolidated subsidiary, THAI SANKO CO., LTD., in the Kingdom of Thailand, and is also developing sales toward Asia.

Recent Overview

Strong HV vehicle sales and the start of mass production of new vehicle models led to net sales and profit exceeding plan, with increases in both

In FY2026 (ending March 2026), net sales were ¥18,289 million (up 8.6% year on year) and operating income was ¥762 million (up 39.6% year on year), exceeding the plan. Sales of production equipment and molds for new automotive-related products progressed steadily, aided by strong sales of HV vehicles and the start of mass production of new vehicle models. Digital Home Appliance-Related Products also grew significantly, up 23.2% year on year. On the other hand, Housing Equipment-Related Products struggled, down 12.2% year on year, and Office Equipment-Related Products declined 12.5% year on year. For FY2027 (ending March 2027), the Company anticipates a slowdown in automobile production volumes due to the impact of US tariff policy and the discontinuation of EV subsidies, and has disclosed conservative forecasts of net sales of ¥17,800 million (down 2.7% year on year) and operating income of ¥690 million (down 9.5% year on year).

Key Products

Growth Drivers

• Increased demand for Automotive-Related Products due to strong sales of HEVs (hybrid electric vehicles)
• Progress in sales of production equipment and molds for new automotive-related products accompanying the start of mass production of new vehicle models
• Continued high growth in Digital Home Appliance-Related Products (up 23.2% year on year in FY2026 (ending March 2026))
• Rapid expansion of Other Products (Electronic Components / Industrial Equipment-Related) (up 41.5% year on year in FY2026 (ending March 2026))
• Development of sales toward Asia through the Thai subsidiary THAI SANKO CO., LTD.
• Strengthening of the financial base through an increase in investment securities (¥2,149 million at the end of FY2026 (ending March 2026))

Risks

• Risk of policy shifts by domestic automakers due to US presidential tariff policy and the discontinuation of EV subsidies
• Forecast slowdown in automobile production volumes (both net sales and profit are expected to decline in FY2027 (ending March 2027))
• Intensifying competition due to the rise of Chinese automakers and uncertainty in the Middle East situation
• Customer concentration risk, with approximately 74% of net sales dependent on Automotive-Related Products
• Decline in demand for Housing Equipment-Related Products (smart meters) (down 12.2% year on year in FY2026 (ending March 2026))
• Foreign exchange risk (impact on overseas operations through the Thai subsidiary)
• Rising raw material and energy prices (due to yen depreciation and geopolitical risk)