Japan Resistor Mfg.Co.,Ltd.

Business Details

The Group is an electronic components specialist manufacturing and selling four product groups: Resistors, Potentiometers, Hybrid IC, and Electronic Equipment. It produces domestically and overseas for a wide range of applications including automotive and industrial equipment, and is pursuing order expansion for EV-related products in the European, Southeast Asian, and Chinese markets along with cost reductions through process automation. Sales for the first quarter of FY2026 (ending December 2026) (January–March) were ¥1,379 million (up 4.9% year on year), driven by increased sales of sensor-related products and an order recovery resulting from improved customer inventory adjustments.

Recent Overview

Q1 net sales up 4.9% year on year; operating loss improved significantly

Net sales for the first quarter of FY2026 (ending December 2026) (January–March) were ¥1,379 million (up 4.9% year on year). Increased sales of sensor-related products and an order recovery resulting from improved customer inventory adjustments contributed to this result. By region, sales were ¥1,054 million domestically, ¥235 million in Asia, ¥83 million in Europe, and ¥5 million in other regions. The operating loss was ¥20 million, a significant improvement from ¥107 million in the same quarter of the prior year. Progress in passing on cost increases to sales prices, along with cost reductions through productivity improvements and expense cuts, contributed to this improvement. There is no change to the full-year earnings forecast (net sales of ¥6,500 million, operating profit of ¥110 million).

Key Products

Growth Drivers

• Sales of sensor-related products (Potentiometers) continued to increase, with Q1 sales rising approximately 30% year on year to ¥202 million
• An order recovery driven by improved customer inventory adjustments progressed, with net sales on a recovery trend, up 4.9% year on year
• Promoting expansion of orders for automotive-related electronic components and industrial equipment-related electronic components in the European and Chinese markets
• Progress in passing cost increases through to sales prices improved the gross profit margin (from 16.7% in the same quarter of the prior year to 23.4% in the current quarter)
• Continuing to strengthen profitability through cost reductions via process automation and labor-saving measures, and through new product development
• Forecasting a return to profitability for full-year FY2026 (ending December 2026), with net sales of ¥6,500 million, operating profit of ¥110 million, and ordinary profit of ¥100 million

Risks

• Continued cost increases due to sustained high resource and energy prices and rising prices
• The equity ratio has declined further to 15.8% (from 16.2% at the end of the prior fiscal year), indicating a continuing weakening of the financial base
• Interest-bearing debt is on an increasing trend, with short-term borrowings at ¥2,571 million (versus ¥2,425 million at the end of the prior fiscal year) and long-term borrowings at ¥1,753 million (versus ¥1,492 million at the end of the prior fiscal year)
• Retained earnings deficit widened to -¥254 million (versus -¥184 million at the end of the prior fiscal year)
• Risk of impact on business performance from surging resource and energy prices and sharp exchange rate fluctuations amid heightened tensions in the Middle East
• The pace of recovery in domestic sales remains unclear, and there is a risk that achievement of the full-year forecast may become difficult depending on trends in capital expenditure demand for industrial machinery
• Impact on exports and overseas operations from heightened geopolitical risk and uncertainty over US tariff policy