ASAHI KAGAKU KOGYO CO.,LTD.
7928・Standard Market・Chemicals
Japan
Asahi Kagaku Kogyo's domestic business base, handling plastic molding for power tool and automotive components.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (cumulative third quarter) | ¥2,540 million | ¥2,735 million | ↓ |
| Operating loss (cumulative third quarter) | -¥114 million | -¥174 million | ↑ |
| Product sales (cumulative third quarter) | ¥2,341 million | ¥2,659 million | ↓ |
| Mold sales (cumulative third quarter) | ¥200 million | ¥77 million | ↑ |
Business Details
The Japan segment is operated by Asahi Kagaku Kogyo Co., Ltd. itself. It engages in the molding processing of plastic products, mainly power tool components and automotive components, as well as the design and manufacture of molds for resin molding. Major customers are Inoac Corporation (22.5% of sales) and Makita Corporation (12.9% of sales). Sales to the power tool and automotive industries account for the majority of domestic sales. In October 2024, the company newly established a research and development facility (plant factory) in Hekinan City, Aichi Prefecture, and has begun research into new business areas.
Recent Overview
Sales down 7.1% due to decline in automotive component orders, but operating loss narrowed year on year.
In the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), domestic sales were ¥2,540 million (down 7.1% year on year). Orders for power tool components increased, but the decline in orders for automotive components weighed on results. The operating loss was ¥114 million (compared to a loss of ¥173 million in the same period of the prior year), narrowing the loss margin. Efforts to introduce automation equipment for production efficiency and improve quality continue.
Key Products
Growth Drivers
- Increase in orders for power tool components (a trend common to Japan and the two overseas countries)
- Improved profit margin from cost reduction on new automotive component products (sales decrease but margins improve)
- Introduction of automation and labor-saving equipment for production efficiency
- Quality improvement and defect prevention through camera-based defect detection equipment
- Research and development of new business areas (providing safe and reliable food ingredients) utilizing the plant factory
Risks
- Risk of continued decline in orders for automotive components (new products expected to have lower sales value than conventional products)
- Pressure on profitability from increased R&D and depreciation expenses (¥65 million in R&D expenses recorded in FY2025, ending August 2025)
- Dependence on sales to specific customers and specific industries (power tools and automotive account for over 93.5% of domestic sales)
- Rising labor and logistics costs and chronic labor shortages
- Risk of demand fluctuation due to US trade policy and tariff measures
- Burden of upfront investment in new businesses such as the plant factory until mass production is achieved
Last updated: November 26, 2025