KOA CORPORATION
6999・Prime Market・Electric Appliances
Business
KOA Corporation is an electronic components manufacturer founded in 1940, whose main business is the development, manufacture, and sale of resistors, ICs, and composite components. In Japan, it operates multiple production sites centered around Ina City, Nagano Prefecture, functioning as a base for supplying high-value-added, high-precision products. Overseas, the company operates subsidiaries in Asia (Taiwan, China, Malaysia, Singapore, and Hong Kong), the United States (Pennsylvania), and Europe (Germany), building a global production and sales structure. Its major customers are manufacturers serving the automotive, industrial equipment, AI server, and data center markets, and the company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange.
Business Model
The company operates a two-tier manufacturing structure in which the Japan segment handles production of high-value-added products, while the Asia segment handles mass production, leveraging its production cost advantage. Products are sold through regional sales subsidiaries directly to automotive, industrial equipment, and AI-related equipment manufacturers in a B2B model, with design-in activities—proposing solutions to customers in advance—serving as the key to winning orders. R&D is conducted at sites in Japan and Europe, including VIA electronic GmbH in Germany, with R&D expenses of ¥3,631 million recorded for FY2026 (ending March 2026).
Company Strengths
Since its founding in 1940, the company has progressively established operations in Malaysia (1973), the United States (1980), Germany (1995), and China (1992 and 2000), among others, and currently maintains a global network comprising 19 subsidiaries and 2 affiliated companies. Total order intake across all segments for FY2026 (ending March 2026) was ¥75,449 million (118.9% year-on-year), indicating a recovery trend.
The company has established a division of labor in which domestic sites (Ina City, Anan Town, Minowa Town, etc.) handle high-precision, high-reliability products, while Asian sites (Taiwan, China, Malaysia) provide cost advantages in mass production. In FY2026 (ending March 2026), production output in the Japan segment was ¥51,030 million (115.3% year-on-year), and production output in the Asia segment was ¥21,124 million (109.7% year-on-year), with both sites on an increasing production trend.
Leveraging its long-cultivated resistor base technology, the company is advancing the development of new products such as high-current metal chips, ultra-compact high-precision thin-film chip resistors, and high-voltage detection dividers. It is also conducting design-in activities for European customers utilizing VIA electronic GmbH in Germany, and recorded R&D expenses of ¥3,631 million (up 1.5% year-on-year) in FY2026 (ending March 2026).
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥75,072 million in FY2023 (ending March 2023) and declined for two consecutive fiscal years, but turned upward in FY2026 (ending March 2026) to ¥72,287 million, up 12.7% year on year. Operating profit recovered 3.1-fold from ¥1,176 million in FY2025 (ending March 2025) to ¥3,646 million, and net income also improved substantially from ¥260 million to ¥3,951 million. As external factors, the completion of inventory adjustments for industrial equipment applications and the recovery in demand for electrification in automotive applications provided a tailwind. Operating CF secured (restated) ¥9,069 million, and capital expenditures also shrank to (restated) ¥5,954 million, improving free cash flow. However, with depreciation expenses remaining at a high level of (restated) ¥7,096 million, a return to peak profit levels is expected to take time.
Growth Strategy
Realizing the 2030 Vision through the establishment of an EV/CASE supply system and the creation of a new sensor business
The company is strengthening its automotive electrification and CASE-compatible products, centered on Surface Mount Resistors, and expanding design-in activities with major automakers in Europe, the United States, and Asia. In the Europe segment, cumulative orders received in the first three quarters of FY2026 (ending March 2026) increased 13.1% year on year, indicating an improvement in this leading indicator.
The company is implementing large-scale capital investment at its Malaysia site in the Asia segment to strengthen resistor production capacity. The major investment phase, during which ¥25,072 million was invested in property, plant and equipment acquisitions in FY2024 (ended March 2024), has been completed, and investment shrank to ¥5,954 million (revised) in FY2026 (ending March 2026). The transition to the investment recovery phase is progressing.
Under the 2027 Medium-Term Management Plan (Phase 2), the company is promoting profit growth and efficiency improvement centered on ROIC management. It aims to improve capital efficiency through productivity gains from the use of digital technology (the 'Shinka' evolution of KPS activities) and the expansion of design-in activities through strengthened quality and reliability.
The company is promoting new business development in the sensor field by applying its resistor technology, aiming to cultivate a new pillar of earnings toward the realization of the 2030 Vision. At present, the contribution to sales is limited, and commercialization over the medium to long term remains a challenge.
Last updated: July 19, 2026