PRESS KOGYO CO.,LTD. (7246) Stock Price

Press Kogyo Co., Ltd. operates primarily through two business segments: automotive-related business and construction machinery-related business. The company forms a group consisting of its parent company, Press Kogyo, and 19 subsidiaries, through which it conducts these operations.

In the automotive-related business, Press Kogyo manufactures and sells automotive components. Specifically, the company produces engine parts and chassis parts, with some manufacturing outsourced to subsidiaries. The subsidiaries also engage in direct sales to customers.

In the construction machinery-related business, Press Kogyo manufactures components for construction machinery. Similarly, the company outsources some production to subsidiaries, which handle direct sales to customers. This structure enables efficient production and sales operations.

Press Kogyo Co., Ltd. has formulated a five-year medium-term management plan beginning in fiscal 2024 and is advancing its growth strategy. The plan adopts "pursuing quality and enhancing presence" as its basic policy and identifies three priority areas. Through this plan, the company aims to increase corporate value and address social challenges.

First, as an offensive and challenging initiative in core operations, the automotive-related business is expanding production capacity. The company is strengthening export-oriented capacity in Japan and ASEAN regions and considering local production. It views commercial vehicle manufacturer consolidation as an opportunity and aims to expand business by leveraging its technological development capabilities.

Second, the company is advancing the evolution of core products toward electrification. Press Kogyo is developing component parts necessary for electric vehicles and is developing products compatible with new powertrains. In particular, it is focusing on EV axle development and battery protection component development, with mass production already underway in Europe and Thailand.

Third, the company is prioritizing the promotion of sustainability management. Based on material issues identified in 2022, it aims to realize a sustainable society. The company seeks to enhance corporate value through workforce diversity, environmental contribution, and strengthened corporate governance.

Press Kogyo targets net sales of 240 billion yen, an operating profit margin of 8.0% or higher, and ROE of 9.0% or higher by fiscal 2028. Through these targets, the company views changing business conditions as opportunities and aims to achieve sustainable growth.