EIDAI KAKO CO.,LTD.

Business Details

Specializes in the manufacture and sale of automotive floor mats, with Honda Access Co., Ltd. and Suzuki Motor Corporation as major customers. In addition to domestic production sites, the company has an overseas site in Vietnam, developing and supplying high value-added products as OEM genuine products. This core segment accounts for approximately 65.9% of consolidated net sales, and has a business structure directly linked to the production and sales trends of automakers.

Recent Overview

Overall sales exceeded the prior year despite the impact of reduced production of some adopted vehicle models; profit increased substantially

Net sales in the Automotive Products segment for FY2026 (ending March 2026) were ¥6,077 million (up 3.2% year on year). Although there was an impact from reduced production of some vehicle models in which the company's floor mats are adopted, overall sales exceeded the prior year. On the profit side, appropriate pricing measures, review of raw materials, cost reduction through optimization of domestic and overseas production, and reduction of outsourcing costs through in-house production all contributed, resulting in segment profit of ¥431 million (up 57.4% year on year), a substantial increase. Among major customers, sales to Honda Access were ¥1,703 million (down from ¥2,047 million in the prior period), while sales to Suzuki were ¥1,616 million (up from ¥1,478 million in the prior period), showing contrasting trends between customers.

Key Products

Growth Drivers

• Improved profit margins through promotion of appropriate pricing (passing on increased import costs and raw material costs to prices)
• Improved profitability through optimization of domestic and overseas production and cost reduction
• Continued reduction in outsourcing costs through promotion of in-house production
• Maintaining cost competitiveness by utilizing the Vietnam production site
• Expansion of market share through strengthened product development capabilities as an OEM genuine product supplier

Risks

• Decrease in shipment volumes due to production halts or reduced sales volumes by automakers (impact of reduced production of some adopted vehicle models also emerging in FY2026 (ending March 2026))
• Risk of sales concentration in two major customers (Honda Access and Suzuki), accounting for approximately 54.6% of total sales for the current period
• Increased import costs due to prolonged yen depreciation (impact on procurement costs in Vietnam)
• Risk of spillover effects on the automotive industry due to U.S. Trump tariffs (downward pressure on business sentiment)
• Risk of demand fluctuations due to customers' inventory adjustments and model changeovers

Business Details

With profile extrusion molding as its core technology, the segment supplies synthetic resin products to a wide range of industrial fields, including Decorative Covers for Air Conditioner Piping, Magazine Sticks, Sewerage Repair Materials, Synthetic Wood Products (Exterior Wood Deck Materials, etc.), home appliance components, and steel furniture-related components. Major customers include Marubeni Plax Corporation (sales of ¥904,538 thousand in the current consolidated fiscal year). Manufacturing is handled by the company, Eidai Kako Vietnam Co., Ltd., and K&M Co., Ltd.

Recent Overview

Net sales up 5.8% year on year; segment profit improved substantially, roughly 2.7 times the prior year level

Net sales in the Industrial Materials segment for FY2026 (ending March 2026) were ¥3,144 million (up 5.8% year on year), with segment profit of ¥46 million (a substantial increase from ¥17 million in the prior period). Decorative Covers for Air Conditioner Piping remained solid amid strong room air conditioner shipments driven by tightened energy efficiency standards, while Sewerage Repair Materials remained strong due to demand related to addressing aging infrastructure. On the other hand, Synthetic Wood Products fell below the prior year due to the declining trend in housing starts. Appropriate pricing measures, cost reduction, and promotion of in-house production contributed to the improvement in profit.

Key Products

Growth Drivers

• Expanding demand for Decorative Covers for Air Conditioner Piping driven by increased room air conditioner shipments amid the Ministry of Economy, Trade and Industry's tightening of energy efficiency standards for FY2027
• Steady order trends for public works-oriented Sewerage Repair Materials against the backdrop of aging sewerage infrastructure issues
• Improved profit margins through appropriate pricing measures (passing on increased raw material and import costs to prices)
• Reduction in outsourcing costs through optimization of domestic and overseas production and promotion of in-house production
• Structural support for air conditioner-related demand from the entrenchment of extremely hot summer trends

Risks

• Sluggish demand for synthetic wood products such as exterior wood deck materials due to the continuing decline in new housing starts
• Uncertainty in the Magazine Stick market, which is affected by shipment trends of industrial equipment for export
• Increased import costs due to prolonged yen depreciation and persistently high raw material prices
• Risk of spillover effects on domestic economic conditions and industrial equipment demand due to U.S. Trump tariff policies
• Risk of sharp increases in energy prices due to instability in the Middle East situation
• Demand fluctuations in the housing building materials and home appliance components fields, which are susceptible to personal consumption trends