MURAKAMI CORPORAITON
7292・Standard Market・Transportation Equipment
Business
Murakami Kaimeido Co., Ltd. traces its roots to a long-established glass and mirror maker founded in 1882, with the current corporate entity established in 1948. Since receiving an order for rearview mirrors from Toyota Motor Corporation in 1958, the company has grown with Automotive Rearview Mirrors as its core business. Today, as a group consisting of the company and 18 subsidiaries, it manufactures and sells products across three regions: Japan (Automotive Rearview Mirrors and Fine Glass for Optical Equipment), Asia (Thailand, China, Indonesia), and North America (the United States and Mexico). Its major customers include Toyota Motor Corporation (22.1% of net sales), as well as a broad range of leading domestic automakers such as Honda, Nissan, Suzuki, Mitsubishi, and SUBARU. Overseas sales account for 56.4% of consolidated net sales, and a localized production system built through global manufacturing bases forms the foundation of the business.
Business Model
The primary source of revenue is BtoB-type manufacturing and sales, in which the group's various production sites manufacture Automotive Rearview Mirrors and deliver them directly to finished vehicle manufacturers such as Toyota and Honda. In addition, the company secures technology revenue by licensing rearview mirror design and manufacturing technology to more than 13 overseas partner companies in Brazil, India, Malaysia, Taiwan, Argentina, and elsewhere, receiving royalties equivalent to a fixed percentage of the sales of the licensed products. Fundraising is based primarily on equity capital, supplemented as needed by bank borrowings and leases, maintaining a financially conservative management approach.
Company Strengths
The company has built long-term trading relationships with all major domestic vehicle manufacturers: Toyota (1958), Mitsubishi (1967), Honda (1976), Nissan (1979), Suzuki (1982), and SUBARU (2003). Sales to Toyota alone account for 22.1% of net sales (¥25,536 million), forming a stable order base while avoiding excessive dependence on any single customer.
The company maintains manufacturing bases in Thailand, China, Indonesia, the United States, Mexico, and India, establishing a system that can respond to automakers' localization needs. In FY2026 (ending March 2026), the overseas sales ratio reached 56.4%, with North America segment sales up 13.8% year on year to ¥31,240 million and the Asia segment up 8.1% year on year to ¥33,104 million, with overseas operations driving growth.
The company licenses its rearview mirror design and manufacturing technology to more than 13 companies in the United States, Mexico, Thailand, China, Indonesia, Brazil, India, Malaysia, Taiwan, and Argentina, continuously receiving a fixed percentage of sales as royalties. This technology income, in addition to revenue from its own manufacturing and sales, contributes to revenue diversification.
ENVALITH's Perspective
Performance Trend
Revenue increased 57% over five periods, from ¥73,595 million in FY2022 (ending March 2022) to ¥115,651 million in FY2026 (ending March 2026), marking a new record high. Operating profit also expanded from ¥4,864 million to ¥9,156 million, but the operating profit margin declined slightly to 7.9% (from 8.1% in the previous period). In FY2026 (ending March 2026), growth was driven by Asia (revenue +8.1%, operating profit +13.9%) and North America (revenue +13.8%, operating profit +33.1%), while operating profit in the Japan segment fell sharply, down 38.2% year on year. External factors such as the normalization of geopolitical risk, additional U.S. tariffs, soaring raw material prices, and rising wage costs are squeezing profitability. For FY2027 (ending March 2027), revenue is forecast at ¥117,000 million (+1.2%) and operating profit at ¥8,700 million (-5.0%), indicating a profit decline and suggesting the company is entering a plateau phase in its growth.
Growth Strategy
Pursuing sustainable growth through three pillars: transforming the profit structure, creating new technologies and products, and optimizing the global production system
From FY2026 (ending March 2026), the Company began investment in Japan aimed at medium- to long-term growth. With a view to strengthening future competitiveness, it is expanding capital expenditure and R&D investment based on selection and concentration, aiming to create new technologies and new products. The increase in tangible and intangible fixed assets in the Japan segment was ¥2,072 million (¥2,612 million in the previous period).
Against the backdrop of persistent geopolitical risk, the Company is promoting diversification of the supply chain and strengthening of local production systems. It continues capital investment at its Asia and North America sites (Asia: ¥994 million, North America: ¥1,963 million), enhancing its flexibility to respond to changes in the external environment. In the North America segment, sales volume increased despite recording an impairment loss of ¥272 million.
In response to cost increases from additional tariffs, rising raw material prices, and wage increases, the Company continues cost recovery negotiations with customers. In the Japan segment, price pass-through remained limited, resulting in a 38.2% year-on-year decrease in operating profit, but the Company aims to achieve further pass-through progress through continued negotiations. The forecast for FY2027 (ending March 2027) assumes an exchange rate of ¥150 to the US dollar.
The annual dividend for FY2026 (ending March 2026) is ¥240 (increased from ¥210 in the previous period), with a payout ratio of 45.7%. For FY2027 (ending March 2027), an annual dividend of ¥240 (interim ¥120, year-end ¥120) is planned, with a payout ratio expected to be 47.1%. The basic policy is to continue stable dividends, while maintaining the policy of allocating retained earnings to new business fields, global expansion, capital expenditure, and R&D.
Last updated: July 19, 2026