RHYTHM CO.,LTD.
7769・Prime Market・Precision Instruments
Precision Parts Business
Rhythm's core segment manufacturing and selling precision parts for automobiles, industrial equipment, optical equipment, and other applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales (Full Year, FY2026 (ending March 2026)) | ¥26,679 million | ¥24,813 million | ↑ |
| Segment Operating Profit (Full Year, FY2026 (ending March 2026)) | ¥2,536 million | ¥2,071 million | ↑ |
| Segment Assets (Full Year, FY2026 (ending March 2026)) | ¥32,190 million | ¥30,730 million | ↑ |
| Depreciation and Amortization (Full Year, FY2026 (ending March 2026)) | ¥1,135 million | ¥1,152 million | ↓ |
| Segment Operating Margin (Full Year, FY2026 (ending March 2026)) | 9.5% | 8.3% | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets (Full Year, FY2026 (ending March 2026)) | ¥1,131 million | ¥966 million | ↑ |
Business Details
Manufactures and sells precision parts, high-precision molds, EMS, and decorative composite products used in automobiles (HEV/BEV parts, ADAS parts), industrial equipment (machine tool parts), optical equipment, AI data servers, solar power generation, home appliances, and more. Domestically, Rhythm Shoei Co., Ltd. and others handle manufacturing and sales, while overseas subsidiaries in Vietnam, Indonesia, China, and Germany handle manufacturing and sales. This core business accounts for approximately 77% of consolidated net sales.
Recent Overview
Increased sales and profit driven by domestic, North American, and Vietnamese operations; parts for AI servers emerge as a new demand pillar
In FY2026 (ending March 2026), the Precision Parts Business recorded net sales of ¥26,679 million (up 7.5% year on year) and operating profit of ¥2,536 million (up 22.4% year on year), representing increased sales and profit. Domestically, in addition to increased orders for machine tool parts and optical equipment-related parts, robust demand continued for parts for AI data servers. Overseas, while sales of mobility-related parts in China and Southeast Asia continued to be weak, orders for new optical cable-related parts in Vietnam and OEM products for North America were strong. Efforts to improve productivity and efficiency, including strengthened inventory management, also led to improvement in profitability.
Key Products
Growth Drivers
- Continued solid orders for HEV parts for domestic and North American markets
- Continued robust demand for parts for AI data servers
- Increased orders for machine tool parts and optical equipment-related parts
- Expansion of orders for new optical cable-related parts in Vietnam
- Favorable trend in orders for OEM products for North America
- Improved profitability through strengthened inventory management and productivity gains
- Development of original parts and expansion into general-purpose and unit parts
- Deepening engagement with strategic customers by leveraging the global network
Risks
- Stagnation in orders for BEV-related parts due to continued slowdown among European automakers
- Continued sluggish sales of mobility-related parts in China and Southeast Asia
- Impact on the automotive industry and supply chain from US tariff policy
- Difficulty in procuring raw materials and price increases due to geopolitical risk (Ukraine, Middle East situation)
- Upward pressure on procurement prices and raw material costs due to yen depreciation
- Uncertainty in demand for BEV-related parts due to stalled BEV adoption
- Prolonged weak local demand due to the extended real estate downturn in China
Last updated: June 22, 2026