ENVALITH
田中精密工業株式会社 logo

TANAKA SEIMITSU KOGYO CO..,LTD.

7218・Standard Market・Transportation Equipment

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田中精密工業株式会社 logo
TANAKA SEIMITSU KOGYO CO..,LTD.7218

Business

Tanaka Seimitsu Kogyo Co., Ltd. is a manufacturing group founded in 1948 and headquartered in Toyama Prefecture. In its core Parts Manufacturing Business, the company manufactures and sells precision parts for internal combustion engines and electric motors—including VTEC rocker arm assemblies for Honda—at four domestic and overseas locations (United States, Thailand, Vietnam, and Niigata), accounting for approximately 75% of consolidated net sales. In the Solutions Business, Tanaka Engineering Co., Ltd. sells FA equipment such as AGVs, assembly equipment, and inspection equipment to external customers. In the Mobility Business, Honda Jihan Tanaka Co., Ltd. handles the sale and rental of Honda products within Toyama Prefecture. Honda Motor Co., Ltd. and its group companies constitute a key customer base, accounting for approximately 36% of net sales.

Business Model

The Parts Manufacturing Business is a build-to-order operation based on customer design specifications, securing stable earnings through continuous mass-production supply centered on aluminum die-casting and precision machining technologies. The Solutions Business leverages the company's own manufacturing know-how to achieve high profitability (segment profit margin of 25.8%) through external sales of FA equipment and AGVs. The Mobility Business adopts a customer lifetime value model combining vehicle sales, maintenance, used vehicles, and rental services, forming a three-layer structure that supplements earnings.

Company Strengths

The company has maintained a continuous business relationship with Honda Motor Co., Ltd. for over 60 years since the start of transactions in 1957. It operates manufacturing subsidiaries in the United States, Thailand, and Vietnam, and in February 2025 made Yoneya Seisakusho Co., Ltd. (Niigata) a wholly owned subsidiary, strengthening its aluminum die-casting mold manufacturing capabilities. The company has built a structure enabling the global supply chain to be completed entirely within its own group.

By evolving the aluminum die-casting technology cultivated through rocker arms, the company has expanded orders for electrification-related products such as BEV parts, steering parts, and HEV inverter cases. It is strengthening its capability to handle high-value-added parts through the fusion of production technology for 800-ton class die-casting machines with metal 3D printers and TTMC (fully automated processing equipment).

The Solutions Business, handled by Tanaka Engineering Co., Ltd., achieved high profitability in FY2026 (ending March 2026), with sales of ¥1,433 million and a segment profit margin of 25.8%. Profit increased 32.9% year on year, driven by expanded sales of FA-Related Equipment & Automated Guided Vehicles (AGV). The company's unique business model of externally selling automation technology cultivated at its own manufacturing sites is a source of competitive advantage.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved revenue growth to ¥43,790 million (up 8.2% year on year), but operating profit fell to ¥2,372 million (down 12.3%), ordinary profit to ¥2,554 million (down 18.5%), and profit attributable to owners of parent to ¥1,194 million (down 33.2%), with profit declining for the second consecutive period. In addition to changes in the sales product mix and new startup costs in North America, total extraordinary losses of ¥1,046 million, including ¥895 million in loss on retirement of fixed assets and ¥146 million in impairment loss, significantly depressed net profit. The gap from the peak in FY2024 (ending March 2024) (operating profit of ¥3,664 million) remains substantial.

The earnings forecast for FY2027 (ending March 2027) calls for revenue of ¥44,800 million (up 2.3% year on year), operating profit of ¥1,700 million (down 28.3%), and ordinary profit of ¥1,800 million (down 29.5%), anticipating a further decline in profit. While the company positions this as a "growth investment phase geared toward future growth," with capital expenditure becoming more aggressive (acquisition of tangible fixed assets of ¥6,830 million) and interest-bearing debt continuing to rise (short-term and long-term borrowings totaling ¥6,619 million), the timing and scale of investment recovery remain unclear, and the outlook for profit recovery continues to be difficult to discern. US tariff policy and foreign exchange fluctuations (external factors) also remain as downside risks.

The structure in which the Parts Manufacturing Business accounts for approximately 75% of consolidated revenue, with high dependence on the Honda group, remains unchanged. While the electrification shift across the automotive industry as a whole (an external factor) presents opportunities for new orders for xEVs, it also carries the risk of a medium- to long-term decline in demand for core internal combustion engine products (such as rocker arm assemblies). The revenue scale of the Solutions Business and the Mobility Business remains small, and the diversification effect of the business portfolio remains limited.

Growth Strategy

Under the long-term management plan Next35, the company is advancing xEV response, expansion of the Solutions Business, and reorganization of the group structure

Advancing mass production of newly awarded orders in the electrification domain (Aluminum Parts & Casting Molds for EVs, inverter frames, etc.). In FY2026 (ending March 2026), new launch costs in North America weighed on profits, but profit contribution is expected after the launch is completed. The FY2027 (ending March 2026) forecast already factors in increased cost burden associated with changes in sales product mix.

Through the subsidiarization of Yoneya Seisakusho Co., Ltd., the company has internalized aluminum die-casting mold manufacturing capability and expanded its supply chain. This contributed to the increase in Parts Manufacturing Business sales revenue to ¥32,938 million (up 8.6% year on year) in FY2026 (ending March 2026). Maximizing group synergies remains a future challenge.

Through the expansion of external sales of FA-Related Equipment & Automated Guided Vehicles (AGV), the company achieved Solutions Business sales revenue of ¥1,433 million (up 5.0% year on year) and segment profit of ¥370 million (up 32.9% year on year) in FY2026 (ending March 2026). The company also continues to pursue capturing xEV-related demand through progress in prototyping and mass production of Adhesive-Bonded Laminated Motor Core Manufacturing Equipment technology.

With an effective date of April 1, 2026, the intermediate holding company "Tee Start Co., Ltd." was established through a simplified incorporation-type company split. Honda Jihansha Tanaka Co., Ltd. and Tee Ark Co., Ltd. were placed under its umbrella, establishing clearer management responsibility and profit management by business as well as a faster decision-making structure.

Under the shareholder return policy of the long-term management plan Next35, a target payout ratio of 30% has been set. The annual dividend was ¥32 per share (payout ratio of 26.0%) in FY2026 (ending March 2026), with a forecast of ¥34 per share (payout ratio forecast of 22.0%) in FY2027 (ending March 2026), continuing a phased increase. Recovery in profit levels is a precondition for achieving the payout ratio target.

Last updated: July 19, 2026