ICHIKOH INDUSTRIES, LTD. (7244) Stock Price

Ichiko Industries is a company primarily engaged in the manufacturing and sales of automotive lighting products. The company is structured around its parent company Valeo Siemens eAutomotive and its parent company Valeo SE, along with 4 consolidated subsidiaries and 2 affiliates accounted for using the equity method. Ichiko Industries supplies lighting products to automotive manufacturers and also manufactures and sells automotive bulbs and wipers for the aftermarket.

Ichiko Industries' business is divided into two main segments. The first is the "Automotive Components" segment, which manufactures and sells lighting products for automotive manufacturers. Domestically, the company sources components from Kyushu Ichiko Industries, while overseas manufacturing and sales are conducted by Ichiko Malaysia, PT. Ichiko Indonesia, and Ichiko Industries Thailand.

The second segment is "Automotive Accessories," where PIAA Corporation previously manufactured and sold automotive bulbs and wipers for the aftermarket. However, all shares of PIAA Corporation have been sold, and the company is now excluded from Ichiko Industries' consolidated scope. This change has resulted in a shift in the company's business composition.

Ichikoh Industries has a mission to "create safe, secure, and comfortable driving environments." The company aims to become a business valued by customers and society through environmentally conscious manufacturing and the pursuit of advanced technologies. To achieve this goal, the company is pursuing sustainable growth.

In its medium-term management plan, Ichikoh Industries targets net sales of 140 billion yen and an operating profit margin of 7% or higher by fiscal year 2028. To achieve these targets, the company is improving productivity through capital investment, reducing fixed costs, and enhancing profitability by leveraging synergies with its parent company Valeo.

Against the backdrop of stagnation in the domestic Japanese market, Ichikoh Industries is focusing on the ASEAN market, where growth is expected. Domestically, the company is promoting the development of high-value-added lighting functions and new products. In ASEAN, it aims to improve quality by leveraging Japanese technological capabilities.

In response to advances in autonomous driving technology, the company has made it a priority to strengthen product technological capabilities and improve cost competitiveness. To strengthen its management foundation, the company is advancing efficiency-focused investments and the adoption of advanced technologies.

Through strengthened synergies with Valeo, Ichikoh Industries is conducting joint research and development, utilizing development bases in cost-competitive regions, and implementing joint procurement that leverages economies of scale to expand market share in global markets.

Ichikoh Industries is working to improve its price-to-book ratio by enhancing profitability, promoting understanding of its growth strategy, and strengthening shareholder returns. The company is also fulfilling its corporate social responsibility by strengthening its internal control systems.