KOA CORPORATION
6999・Prime Market・Electric Appliances
Japan
Core segment for domestic production and sales, serving as the primary supply base for high-value-added products
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (segment total) | ¥51,638 million | ¥51,565 million | — |
| Sales to external customers | ¥20,043 million | ¥21,456 million | ↓ |
| Segment profit (loss) | -¥1,056 million | ¥433 million | ↓ |
| Depreciation and amortization | ¥4,282 million | ¥3,648 million | ↑ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥5,961 million | ¥8,760 million | ↓ |
Business Details
KOA Corporation itself and four consolidated subsidiaries (including Koa Electronics Co., Ltd.) manufacture advanced technology products and high-value-added products such as Resistors (Surface Mount Resistors, etc.), ICs, and High-Frequency Inductors. Sales are handled by nine domestic sales offices and Koa Trading Co., Ltd. Intersegment internal sales (¥26,760 million) significantly exceed sales to external customers (¥20,043 million), reflecting the segment's major role as a product supply base for the Asia, United States, and Europe segments.
Recent Overview
Segment fell into a loss due to weak demand for industrial equipment applications and increased fixed costs
In FY2025 (ended March 2025), the Japan segment recorded sales of ¥51,638 million (up ¥72 million year on year), only a slight increase, while posting a segment loss of ¥1,056 million (a deterioration of ¥1,489 million from the prior year's segment profit of ¥433 million). Domestic demand for industrial equipment, power supply, and automotive applications was generally weak, and sales to external customers fell to ¥20,043 million (down 6.6% year on year). Increased fixed costs, including depreciation and amortization (¥4,282 million) associated with capacity-expansion investment and higher R&D expenses from the establishment of a new R&D facility, weighed on profitability. Meanwhile, for the cumulative nine months of FY2026 (ending March 2026) through the third quarter, the Japan segment showed a recovery trend, with sales to external customers of ¥16,461 million (up 8.8% year on year) and segment profit of ¥1,619 million.
Key Products
Growth Drivers
- Demand for industrial equipment applications recovered in the cumulative nine months through the third quarter of FY2026 (ending March 2026), improving Japan segment external customer sales by 8.8% year on year to ¥16,461 million
- Medium- to long-term expansion in demand for Surface Mount Resistors driven by accelerating automotive electrification toward carbon neutrality
- Promotion of profit growth and efficiency improvement centered on ROIC management under the 2027 Medium-Term Management Plan (Phase 2)
- Productivity improvement through the use of digital technology (KPS activity "Shinka") and expansion of design-in activities through enhanced quality and reliability
- Order intake trending toward recovery, up 113.4% year on year to ¥19,651 million (FY2025 results)
Risks
- Risk of delayed recovery in demand for industrial equipment: recent recovery has been sluggish, with potential for further delays
- Profit pressure from rising fixed costs: depreciation and amortization (¥4,282 million) associated with capacity-expansion investment remains elevated, a structure prone to widening losses during periods of weak sales
- Deteriorating profitability from yen appreciation: if the yen trends stronger, this would affect segment revenue including internal transfer sales
- Geopolitical risks such as U.S. tariff policy: risk that changes in trade policy could worsen the global economy and spill over into domestic demand
- Decline in production output: production output in the Japan segment for the fiscal year under review contracted to ¥44,260 million (down 7.6% year on year)
Last updated: June 19, 2026