IKUYO CO.,LTD.

Business Details

Based in Japan, China, and Indonesia, the company manufactures and sells Automotive Interior Equipment (door trims, floor consoles, pillar trims, etc.) and Automotive Exterior Equipment (radiator grilles, bumpers, side garnishes, etc.). From the current period, Kunshan Veritas Automotive Systems Co., Ltd. and Tamadai Corporation were added to the scope of consolidation, and this segment accounts for 99.8% of consolidated net sales, making it the Group's core segment.

Recent Overview

Net sales increased 70% year on year due to consolidation of two new companies, and segment profit also improved significantly

In FY2026 (ending March 2026), the scope of consolidation expanded due to the acquisition of shares in Kunshan Veritas Automotive Systems Co., Ltd. and Tamadai Corporation, resulting in net sales of ¥30,098 million (up 70.2% year on year) and segment profit of ¥907 million (a significant improvement from ¥44 million in the prior period) for the Automotive Parts segment. Goodwill of ¥1,459 million was newly recorded, with amortization of ¥163 million for the current period. The company worked to optimize its global supply system, striving to respond swiftly to customer needs and improve profitability across its facilities in Japan, China, and Indonesia.

Key Products

Growth Drivers

• Expansion of sales scale and strengthening of the global supply system through consolidation of Kunshan Veritas Automotive Systems Co., Ltd. and Tamadai Corporation
• Stabilization of production due to the recovery trend in production by domestic automakers and the resolution of the semiconductor shortage
• Optimization of the global supply chain through continued stable operations at the Indonesian subsidiary and strengthened order-taking activities for next-generation vehicle models
• Continued promotion of price pass-through to offset cost increases
• Acceleration of R&D on next-generation technologies to address the CASE domain (weight reduction, higher efficiency, higher functionality)
• Promotion of environmentally friendly business through introduction of solar power generation at the Okayama and Nagoya plants, and utilization of surplus power

Risks

• Cost increases due to rising prices of raw materials and auxiliary materials (a situation not fully absorbed by cost savings from rationalization)
• Decline in automobile exports and uncertainty in external demand due to additional U.S. tariff policies
• Customer concentration risk due to sales concentration on the top three customers: Mitsubishi Motors Corporation, Isuzu Motors, and Mitsubishi Fuso Truck and Bus
• Risk of demand fluctuation for existing products (internal combustion engine-related parts) amid a period of major transformation in the automotive industry, including electrification and CASE response
• Intensifying global competition due to the rise of overseas players, particularly Chinese manufacturers
• Foreign exchange risk (cost increases due to yen depreciation, impact on profitability of overseas operations)
• Integration risk related to newly consolidated subsidiaries (Kunshan Veritas and Tamadai) and goodwill impairment risk
• Risk of recording impairment losses (an impairment loss of ¥2,630 million was recorded in FY2026 (ending March 2026))