TS TECH CO., LTD.
7313・Prime Market・Transportation Equipment
Japan
Core domestic manufacturing and sales segment, supplying products for two-wheeled and four-wheeled vehicles
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥112,130 million | ¥110,467 million | ↑ |
| Operating profit | ¥9,626 million | ¥10,359 million | ↓ |
| Operating margin | 8.6% | 9.4% | ↓ |
| Depreciation and amortization | ¥4,722 million | ¥4,594 million | ↑ |
| Capital expenditures | ¥6,971 million | ¥6,330 million | ↑ |
Business Details
The Japan segment consists of TS TECH CO., LTD. itself and domestic affiliated companies such as Kyushu TS TECH Co., Ltd. and TS Parts & Service Co., Ltd. It primarily manufactures and sells Seats and Resin Parts for Two-Wheeled Vehicles as well as Seats for Four-Wheeled Vehicles and Interior Components for Four-Wheeled Vehicles, with Honda Motor Co., Ltd. as its main customer. It is also the core hub for research and development and technology development for the entire Group, and is responsible for proposing next-generation in-vehicle space technologies. In FY2026 (ending March 2026), revenue increased slightly due to an improved model mix and the effect of increased production for the main customer, but operating profit decreased due to a decline in royalty income and other factors.
Recent Overview
Revenue increased, but operating profit fell 7.1% year on year due to a decline in royalty income and other factors
In the Japan segment for FY2026 (ending March 2026), revenue rose slightly to ¥112,130 million (up 1.5% year on year), driven by an improved model mix and increased production for the main customer. On the other hand, operating profit declined to ¥9,626 million (down 7.1% year on year). Although there was a revenue-boosting effect, the main cause was a decline in royalty income. In addition, the consolidation of multiple production sites in the Saitama area into the Gyoda Plant was completed, strengthening the business foundation. Sun Chemical Industry Co., Ltd. was absorbed into TS Parts & Service Co., Ltd. through a merger and was removed from the scope of consolidation.
Key Products
Growth Drivers
- Expansion of revenue due to an improved model mix and the effect of increased production for the main customer (Honda Motor Co., Ltd. group)
- Improved production efficiency and cost reduction through the completed consolidation of Saitama-area production sites into the Gyoda Plant
- Revenue diversification through increased new business revenue (non-Honda)
- Streamlining of the domestic business structure through the merger absorbing Sun Chemical Industry Co., Ltd. into TS Parts & Service Co., Ltd.
- Groundwork for securing future business opportunities through development and proposal activities for next-generation in-vehicle space technologies
Risks
- High dependence of revenue on the main customer (Honda Motor Co., Ltd. group), creating a risk that fluctuations in the company's production plans directly affect performance (in FY2026 (ending March 2026), revenue from the Honda Motor Co., Ltd. group was ¥382,124 million, accounting for 86.4% of total revenue)
- A decline in royalty income is pressuring operating profit, and future trends in this income remain a risk to profitability
- Continued cost increases due to rising prices and labor costs, with a risk that cost-reduction efforts may not keep pace
- A risk that changes in the global shift to EVs, and resulting revisions to automakers' development plans, could affect orders for new models
- Impact of exchange rate fluctuations (yen appreciation) on export-related revenue
Last updated: June 17, 2026