YASUNAGA CORPORATION

Business Details

The company manufactures and sells automotive engine parts such as connecting rods, cylinder heads, camshafts, and crankshafts. In addition to domestic operations (the Company), it has built a global structure comprising overseas manufacturing subsidiaries in Indonesia, Thailand, and Mexico, along with a US sales subsidiary. Major customers include Toyota Motor Asia (13.4% of net sales) and General Motors Company (7.0% of net sales). The company has also begun full-scale mass production of Wick Sheets for Smartphone Vapor Chambers, securing a new revenue source. This is the largest segment, accounting for approximately 76% of the Group's external net sales.

Recent Overview

Sharp increases in both revenue and operating profit driven by full-scale operation of new domestic lines, continued North American demand, and the start of wick sheet mass production.

In FY2026 (ending March 2026), full-scale operation of new domestic production lines and continued automotive demand in the North American market, combined with increased sales at overseas subsidiaries, contributed to results. In addition, the start of full-scale mass production of the new Wick Sheets for Smartphone Vapor Chambers product also contributed, resulting in net sales to external customers of ¥25,721 million (up 12.4% year on year) and operating profit of ¥1,877 million (up 269.0% year on year), representing substantial increases in both revenue and profit. Capital expenditures expanded significantly to ¥5,735 million from ¥2,946 million in the prior period, reflecting continued active investment aimed at increasing production capacity going forward.

Key Products

Growth Drivers

• Expansion of production capacity through full-scale operation of new domestic production lines
• Continued automotive demand in the North American market (US and Mexico)
• Increased sales at overseas manufacturing subsidiaries (Indonesia, Thailand, Mexico)
• Securing a new revenue source through full-scale mass production of Wick Sheets for Smartphone Vapor Chambers
• Expected increase in net sales in the next fiscal year (FY2027 forecast) due to new line operations at overseas subsidiaries, among other factors
• Strategy to expand orders for engine parts for construction machinery, agricultural machinery, industrial machinery, and marine applications
• Productivity improvement initiatives utilizing IoT and robotics

Risks

• Risk of production adjustments/cutbacks in the automotive industry (reduced utilization rates due to certification irregularities, natural disasters, etc.)
• Risk of production adjustments in the North American market (demand fluctuations due to US government tariff policy)
• Risk of decreased sales due to the discontinuation of production of certain mass-produced products
• Decrease in operating profit in the next fiscal year due to the disappearance of one-time recovery effects from production equipment investment (a decrease in operating profit is forecast for FY2027, ending March 2027)
• Foreign exchange fluctuation risk (given the global structure with numerous overseas subsidiaries)
• Customer concentration risk (Toyota Motor Asia 13.4%, General Motors Company 7.0%)
• Impact on overseas operations from heightened geopolitical risk
• Impairment risk and cash flow pressure associated with large-scale capital expenditures (¥5,735 million)