5644 Metal Art
- Aug 9, 2025
- 1 min read
In the area of automotive forgings, Metal Art is growing business with Daihatsu and Toyota. Possesses world's leading technology in cold combined precision forging
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"While Metal Art is doing well in Japan, there are concerns about the future of its overseas operations.
The company is particularly concerned about the deterioration in Indonesia, where its local subsidiary generates 16% of its global sales. With the influx of cheap completed EVs from China, the local market share of its Japanese customers is rapidly declining. Despite facing headwinds, the Indonesian market, with a population of 280 million, has great potential. The company is looking ahead, saying, "We will grit our teeth and continue our business."
https://www.nikkei.com/article/DGXZQOUF1182M0R11C25A1000000/
Nov 11 - Metal Art changes guidance for Apr-Sept 2025 from yoy 23.6% profit DECLINE to 1.6% GROWTH, also revising up full year forecast from 23.1% yoy decline to 0.1% yoy decline
Also boosts dividend from original plan of 140 yen to 150 yen (compared with 133 yen paid out last year)
https://kabutan.jp/news/marketnews/?&b=k202511110062
Wondering why capex, 3.6 B is so much higher than depreciation, 2 B.
Here's an AI analysis of the company's core technology:
Q1: What is the market value of Metal Art’s cold composite precision forging technology?
A1: The technology is highly valuable in the automotive, construction, and agricultural machinery parts markets due to its high precision, cost efficiency, and ability to produce complex components. It aligns with trends like vehicle electrification, with an economic impact likely in the tens of billions of yen, given the trillion-yen scale of the automotive parts market.
Q2: Is the technology too niche to support pricing power or market share expansion?
A2: While niche, the technology’s ability to meet demands for high-precision, low-cost parts in growing markets like electric vehicles ensures competitive differentiation. It supports pricing power and…
at 3590 yen/share, 11.3 bil yen mkt cap vs 6 bil yen net cash
5.88x per / 0.44x pbr / 3.90% yield