YAMADA MANUFACTURING CO., LTD. (E02244) Stock Price

Yamada Manufacturing is an automotive parts manufacturer that designs, develops, manufactures, and sells functional components for four-wheeled and two-wheeled vehicles. Operating through five subsidiaries, the company produces a wide range of products spanning from critical engine components to drivetrain parts. In addition to domestic manufacturing and sales, the company conducts global operations through subsidiaries in the United States, Thailand, and China.

Honda Motor Co., Ltd. is the company's primary customer, with whom it maintains a continuous and close business relationship. The revenue structure is centered on automotive parts operations, with four-wheeled and two-wheeled vehicle component manufacturing and sales as core businesses. International expansion helps diversify regional risks and establishes a stable revenue base.

The business is divided into three main segments. For four-wheeled vehicles, the company manufactures oil pumps that circulate engine oil, water pumps that circulate coolant, steering columns that transmit steering input, and transmission-related components. For two-wheeled vehicles, it similarly produces oil pumps and water pumps, as well as speedometers and brake-related parts. The company also handles general-purpose components and other products, including outboard motor and generator parts, as well as manufacturing equipment and molds.

Yamada Manufacturing is advancing a growth strategy under its long-term vision "YAMADA VISION 2030," aiming to become "a company that creates what the world wants through technological innovation." The company positions its current 13th medium-term plan as "a critical three-year period to secure sustainable growth," with three strategic pillars: "electrical control products," "large-scale aluminum casting products," and "new business." However, current performance is challenging, with consolidated net sales for the fiscal year ending March 2026 projected at 76 billion yen, down 15.4% year-over-year, and operating profit at 600 million yen, down 85.7%. Strategic transformation in response to changing business conditions has become urgent.

In priority investment areas, the company is prioritizing product development to address electrification trends. Yamada has successfully secured new orders for various powertrain applications and has built a flexible product strategy capable of adapting to both accelerating and decelerating electric vehicle adoption scenarios. While the automotive industry faces rapid shifts toward electric vehicles and highly electrified vehicles in the Chinese market alongside intensifying price competition, the U.S. and Japanese markets show slower electrification progress. The company emphasizes timely product launches tailored to each market's characteristics.

For new market development, the company is proactively entering new markets while anticipating demand expansion from electric vehicles and pursuing business diversification. Amid increasingly complex management conditions and persistent unpredictability, the company faces challenges including impacts from protectionist policies under the new U.S. administration and rising prices and wages. While addressing these developments appropriately, Yamada aims to expand its business scale.

In technological innovation, the company is strengthening efforts to reduce environmental impact and promoting product environmental value-added at the development stage based on "SCOPE 3" principles, along with implementing external evaluations of activities. Through concrete measures toward carbon neutrality, Yamada is advancing its transformation into a sustainable manufacturing company. Under rapidly changing business conditions, the company is working to improve its management foundation while pursuing the realization of "YAMADA WAY"—an unchanging guiding principle—and its long-term vision.