The Lead Co., Inc.
6982・Standard Market・Transportation Equipment
Business
Read Co., Ltd. was founded in 1945 and is headquartered in Kumagaya City, Saitama Prefecture, listed on the TSE Standard Market and the Fukuoka Stock Exchange. Its Automotive Parts business, accounting for approximately 89.8% of net sales, handles sheet metal working, painting, and resin molding on an integrated basis, centered on resin exterior parts such as bumpers and spoilers for SUBARU. The remainder consists of the Bicycle Parking Business (accounting for 9.6% of net sales), which handles the planning, manufacturing, sales, and maintenance of bicycle racks and other products following the business transfer from Nippon Steel Nisshin Business Service in 2021, and the Real Estate Leasing business, which owns rental stores within Kumagaya City. The Electronic Equipment Business was fully exited as of the end of June 2025, reflecting ongoing streamlining of the business portfolio.
Business Model
The core Automotive Parts business is built on Tier-1 orders from the main customer SUBARU, providing added value through an integrated production system covering resin molding, painting, and assembly. The Bicycle Parking Business leverages its strength as a fully in-house integrated system spanning planning and development through design, manufacturing, sales, installation, and maintenance, winning large-scale projects such as those for government offices and station-front facilities. Real Estate Leasing records stable rental income of approximately ¥39–40 million per year as non-operating income, providing underlying support for earnings.
Company Strengths
With a business relationship with Fuji Heavy Industries dating back to a 1959 business alliance—over 60 years of transaction history—sales to SUBARU reached ¥3,249 million in FY2026 (ending March 2026) (63.2% of total sales). In addition to a three-plant structure comprising the Head Office, Nishino, and Shimonara plants, the company owns multiple medium- to large-sized molding machines, including a 3,500-ton large resin molding machine introduced in July 2025, giving it the production capacity to in-house manufacture large exterior parts such as Bumpers, Spoilers and Other Exterior Parts.
The Shinwa-type Bicycle Parking System (Bicycle Rack), acquired from Nippon Steel Nisshin Business Service in 2021, has a 40-year history and a cumulative installation record of 600,000 units. The company maintains an in-house structure covering everything from planning and development to design, manufacturing, sales, installation, and maintenance. In FY2026 (ending March 2026), driven by the acquisition of large-scale orders from government agencies and station-front facilities, sales grew 125.9% year on year to ¥494 million, with ordinary income of ¥68 million.
The company obtained a patent for anneal-less technology for automotive resin parts in September 2022, giving it proprietary technology that addresses needs for weight reduction and cost reduction. In FY2026 (ending March 2026), R&D expenses totaled ¥55 million (¥49 million for Automotive Parts, ¥5 million for the Bicycle Parking Business), continuing R&D efforts in new materials, new processing methods, special coatings, and next-generation mobility applications.
ENVALITH's Perspective
Performance Trend
Revenue increased 22.8% year on year, from ¥4,186 million in FY2025 (ended March 2025) to ¥5,141 million in FY2026 (ending March 2026). This was driven by two new large-scale mass-production vehicle models (starting in the second half) and an increase in large-scale projects in the Bicycle Parking Business (up 125.9% year on year). On the other hand, upfront investments such as the introduction of a 3,500-ton large resin molding machine and factory layout reorganization pushed the cost-of-sales ratio up from 37.5% to 42.6%, widening the operating loss to ¥111 million (versus ¥90 million in the prior fiscal year). Net loss for the period narrowed to ¥69 million (versus ¥105 million in the prior fiscal year). As an external factor, SUBARU's global production volume continued to face headwinds, down 7.0% year on year, but revenue growth was achieved thanks to the effect of new vehicle models. For FY2027 (ending March 2027), the company forecasts revenue of ¥6,660 million and a return to profitability with operating profit of ¥80 million.
Growth Strategy
Aiming for a return to profitability through full-scale contribution from two new large-volume production vehicle models, improved utilization of the large-scale molding machine, and expansion of the Bicycle Parking Business
The two new large-volume production vehicle models, for which production began in the second half of FY2026 (ending March 2026), are expected to make a full-year contribution in FY2027 (ending March 2026 [sic]). Cumulative sales for the first half are projected at ¥3,220 million (up 80.5% year on year), with the target of achieving full-year sales of ¥6,660 million and a return to profitability with operating profit of ¥80 million.
Aim to raise the utilization rate of the 3,500-ton large-scale resin molding machine (a capacity-expansion investment) introduced in FY2026 (ending March 2026), thereby improving the ability to absorb fixed costs. Through continued large-volume orders, seek to improve the manufacturing cost ratio and eliminate the ordinary loss in the Automotive Parts segment (¥195 million in FY2026 (ending March 2026)).
Introduce automatic clip insertion equipment to improve the production capacity, production efficiency, and quality of assembly work, and to strengthen order-taking competitiveness. In combination with optimization of staff allocation and thorough budget management of major expenses, promote improvement of the cost structure.
Continue to expand orders centered on large-scale projects such as those from government offices and station-front facilities, sustaining the growth of the In-house Products segment, which returned to profitability (ordinary profit of ¥68 million) in FY2026 (ending March 2026). Leveraging an integrated in-house structure from planning and development through maintenance, aim for medium- to long-term business expansion through the expansion of sales areas and channels and the strengthening of product development capabilities.
Completed withdrawal from the Electronic Equipment Business at the end of June 2025. A business withdrawal loss of ¥33 million was already recorded in the previous fiscal year, and no additional costs arose in the current fiscal year. This has enabled the concentration of management resources on the Automotive Parts and Bicycle Parking businesses, with Other segment profit of ¥19 million (up 190.6% year on year) recorded in FY2026 (ending March 2026).
Last updated: July 19, 2026