CHUO MALLEABLE IRON CO., LTD. (5607) Stock Price

Chuo Forging Industry is a manufacturer and distributor of cast iron and aluminum automotive parts, industrial machinery components, and metal furniture such as office chairs. The company group operates an integrated production system in collaboration with domestic and overseas subsidiaries and affiliated companies.

Its primary customers are manufacturers, including automobile makers, and supplies parts to companies such as Toyota Motor Corporation. Revenue is primarily driven by automotive parts shipments, while metal furniture sales provide a stable additional income stream.

The business operates on two pillars: the "Forging Business" and the "Metal Furniture Business." In the Forging Business, cast iron and aluminum automotive parts and industrial machinery components are manufactured by the company, consolidated subsidiaries, and outsourced facilities such as those in Suzhou, with affiliated companies handling certain production processes. In the Metal Furniture Business, the company handles sales while consolidated subsidiaries manage manufacturing and delivery.

The company is steadily advancing its Medium-Term Plan 2025, targeting net sales of 4 billion yen or more and an operating profit margin of 3.5% or higher for the fiscal year ending March 2026. The company prioritizes revenue growth through business domain expansion and financial foundation strengthening through cost reduction, while also working to improve profit structure with return on equity (ROE) in mind. In the final year of the medium-term plan, the company plans to make growth investments while maintaining stable earnings from its core businesses of automotive components and metal furniture.

As priority investment areas, the company is expanding into industrial machinery and growth sectors in addition to its mainstay automotive business. As differentiation strategies, the company leverages its integrated production system for cast iron and aluminum materials and domestic and overseas production bases, including its Suzhou facility, to strengthen supply of high-value-added components to major automakers through high quality and short lead times. In parallel, the company is implementing concrete measures to enhance cost competitiveness through automation of processing lines and process rationalization.

The company group aims to create new businesses by 2030, including industry-academia collaboration, in developing new markets. To respond to changing demand, the company plans to expand its customer base from its traditional automotive focus to new applications such as industrial machinery and electrification-related products, leveraging domestic and overseas bases to diversify its customer foundation and accelerate market entry speed. To support these expansions, the company is simultaneously strengthening its stable financial base and production capacity.

In technological innovation, the company is actively improving production efficiency. Through automation of processing lines and rationalization of production using artificial intelligence (AI) and sensor connectivity (IoT), the company aims to improve yield and operational efficiency, while also promoting energy-saving measures and renewable energy adoption to reduce CO2 emissions. As investment in human capital, the company is advancing development of next-generation leaders and support for diverse talent, implementing initiatives to enhance competitiveness in both technology and human resources.