SHOWA CORPORATION (E02184) Stock Price

Showa is a specialized manufacturer of precision components for automobiles and marine vessels. The company's core products include shock absorbers that affect ride comfort, power steering systems essential for vehicle control, and powertrain components for outboard motors. Through these technologies, Showa has established a strong position in the industry over many years.

The company's primary customers are automobile manufacturers including Honda Motor Co., Ltd., with whom it maintains continuous and stable business relationships. Revenue is centered on the manufacturing and sales of components for two-wheeled vehicles, four-wheeled vehicles, and marine vessels. The company has established a system for direct delivery to customer factories from production facilities worldwide. A key characteristic is the secure order base ensured through its close relationship with Honda Motor Co., Ltd.

The business consists of five segments: the two-wheeled and general-purpose division handles shock absorbers for motorcycles and outboard motor components; the four-wheeled division manufactures shock absorbers and transmission components for automobiles. The steering division produces electric and hydraulic power steering systems, the gas spring division manufactures industrial gas springs, and the other division handles automobile sales and manufacturing equipment sales.

Showa is pursuing a growth strategy to establish itself as a systems supplier during a period of major transformation in the automotive industry. The company is moving beyond its traditional role as a parts manufacturer, building strong technological and quality brands to transform itself into a proposal-driven company that delivers superior products to customers quickly. While referencing ROE and ROA as management indicators, the company is deploying strategies that prioritize long-term corporate value enhancement, with the entire group working toward achieving sales and profit targets.

In priority investment areas, strengthening competitiveness in the CASE sector—which is attracting significant attention in the automotive industry—is the top priority. Through the four-company management integration announced in 2019 involving Hitachi Automotive Systems, Keihin, and Nissin Industrial announced in 2019, Showa plans to significantly enhance its solution development capabilities in cutting-edge technology areas such as electrification, autonomous driving, and connected vehicles. This integration accelerates the shift from providing individual products to delivering comprehensive solutions that combine software.

In new market development, the company adopts a strategy that balances global expansion with maintaining existing business relationships. Showa strengthens collaboration between business divisions and other functional divisions to identify customer and market needs early, building a sales structure that actively proposes the company's technologies and products. In particular, through product development that addresses social demands such as reducing environmental impact, preventing traffic accidents, and improving comfort, the company aims to create new business opportunities.

In technological innovation efforts, the company focuses on strengthening quality assurance systems based on improving the quality of individual work. Rigorous quality management grounded in logical reasoning is implemented at each stage from product development to shipment, delivering attractive products that satisfy customers. Under a long-term vision of realizing a safe and comfortable society and expanding people's joy of mobility, the company pursues continuous technological innovation and management reform to contribute to the development of the automotive and motorcycle industries.