SONOCOM CO.,LTD.

Business Details

The company manufactures and sells screen masks and photomasks for screen printing (used in electronic component production, printed circuit board surface mounting, liquid crystal device production, etc.), and purchases and sells screen printing materials such as printing machines and squeegees. Its main customers are in the electronic components industry. The company consolidates manufacturing by product category across its two production sites, the Matsudo Plant and the Tamagawa Plant, and its strength lies in the stable supply of high-precision products. It maintains sound finances with zero interest-bearing debt and an equity ratio of 92.1%. In July 2026, the company plans to make EF2 business company (Kyushu SONOCOM CO., LTD.), which possesses precision micro-fabrication technology, a subsidiary, aiming to expand its business domain.

Recent Overview

Both net sales and profit increased significantly; a subsequent event resolution was made to make the EF2 business a subsidiary

In FY2026 (ending March 2026), the company achieved substantial increases in both revenue and profit, with net sales of ¥2,712 million (up 12.0% year on year), operating income of ¥332 million (up 64.6%), and net income of ¥304 million (up 44.5%). This was driven by solid demand for electronic components used in AI servers, data centers, and smartphones. On the other hand, demand related to automotive applications such as EVs remained sluggish. For FY2027 (ending March 2027), the company forecasts net sales of ¥2,700 million (down 0.5% year on year) and operating income of ¥190 million (down 42.8%), a significant decline in profit. As a subsequent event, the company resolved to acquire all shares (scheduled for July 1, 2026) of a newly established company (Kyushu SONOCOM CO., LTD.) that will succeed to the EF2 (Electro-Fine-Forming) business of Maxell, Ltd., aiming to expand into the precision processing field.

Key Products

Growth Drivers

• Continued solid demand for electronic components used in AI servers, data centers, and information and communication-related applications such as smartphones
• Ongoing efforts to develop high-value-added products, stably produce high-precision products, and improve production efficiency
• Business expansion into the precision processing field and creation of synergies through the acquisition of the EF2 (Electro-Fine-Forming) business as a subsidiary (Kyushu SONOCOM CO., LTD., scheduled for July 2026)
• Expansion of Screen Printing Equipment & Materials (Merchandise Sales) (up 7.7% year on year)
• Financial flexibility supported by zero interest-bearing debt, a high equity ratio (92.1%), and ample cash reserves (¥4,143 million)

Risks

• Continued sluggish demand for electronic components related to automobiles such as EVs, and uncertainty over the timing of recovery
• Uncertainty over the outlook due to US trade policy, China's economic slowdown, and heightened geopolitical risk
• Risk of profit pressure from rising energy and raw material prices (material cost ratio rose to 30.4%)
• Significant expected decline in operating income in the FY2027 (ending March 2027) forecast (from ¥332 million to ¥190 million, down 42.8% year on year)
• Integration risk and investment recovery risk associated with making the EF2 business a subsidiary
• Intensifying order competition with industry peers
• Risk of delayed response to the pace of technological innovation in the electronic components industry