TS TECH Co., Ltd. (7313.T) Bundle
A Brief History of TS TECH Co., Ltd.
Founded in 1960, TS TECH Co., Ltd. is a Japanese company specializing in automotive components, particularly seating systems. The company is a subsidiary of the Honda Motor Company and operates globally, focusing on the design, manufacture, and sales of automotive interior products.
As of 2023, TS TECH has reported total sales of approximately ¥457 billion (around $4.1 billion), with a net income of ¥14.2 billion (about $128 million). The company's growth trajectory can be attributed to its innovative designs and strategic partnerships with major automobile manufacturers.
In 2016, TS TECH celebrated its 55th anniversary, marking decades of commitment to quality and technological advancement. The company has expanded its production capacity significantly over the years. In 2021, TS TECH announced the opening of its new manufacturing facility in Mexico, aiming to enhance production efficiency and meet the demands of North American customers.
TS TECH's global footprint includes plants in various countries, including Japan, China, Thailand, and the United States. The company employs over 14,000 personnel worldwide. As of the end of 2022, TS TECH reported a significant investment in R&D, amounting to ¥8 billion (around $73 million), focused on developing eco-friendly and lightweight materials.
The following table summarizes TS TECH’s financial performance and key milestones over the years:
| Year | Total Sales (¥ billion) | Net Income (¥ billion) | Employees | Major Milestones |
|---|---|---|---|---|
| 1960 | 0.1 | 0.01 | 50 | Company Established |
| 2000 | 120 | 5 | 3,000 | First overseas plant opened in Thailand |
| 2010 | 300 | 10 | 8,000 | Listed on Tokyo Stock Exchange |
| 2020 | 410 | 12 | 12,500 | Expanded production in China |
| 2023 | 457 | 14.2 | 14,000 | New facility opened in Mexico |
As of recent years, TS TECH has been actively pursuing sustainability initiatives, aiming to reduce CO2 emissions in its production processes. The company's commitment to green technology has positioned it favorably in the eyes of environmentally conscious consumers and stakeholders.
In addition to its operations in automotive seating, TS TECH has diversified its product range, venturing into interior components such as dashboards and door trims, reflecting the evolving trends in vehicle design and consumer preferences.
The company's revenue streams are significantly influenced by the automotive market, with approximately 75% of its sales coming from the passenger vehicle segment. TS TECH continues to strengthen its relationships with key partners, which include not only Honda but also Toyota and Nissan.
A Who Owns TS TECH Co., Ltd.
TS TECH Co., Ltd., listed on the Tokyo Stock Exchange under the ticker symbol 7313, has a diversified ownership structure. As of the latest financial reports, the company is primarily owned by institutional investors, with significant ownership also held by individual shareholders.
According to the latest data from the fiscal year ending March 31, 2023, the shareholding structure of TS TECH is as follows:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 45.3% |
| Individual Investors | 34.7% |
| Corporate Shareholders | 10.5% |
| Treasury Stock | 9.5% |
The largest institutional investor is the Sumitomo Mitsui Trust Asset Management, which manages approximately 8.2% of the shares. Other notable institutional investors include Nomura Asset Management with 7.1% and JP Morgan Asset Management holding 4.5%.
TS TECH Co., Ltd. operates in the automotive industry, specializing in the production of automotive interior parts, including seats and seatbelts, contributing to its strong ties and collaborative relations with major automobile manufacturers such as Honda Motor Co., Ltd. and Nissan Motor Co., Ltd..
As of October 2023, TS TECH's market capitalization stands at approximately ¥142 billion ($1.2 billion) with an average trading volume of 120,000 shares per day. The company's most recent earnings report disclosed a revenue of ¥100 billion ($850 million) for the fiscal year 2022, reflecting a growth of 12% year-over-year.
The share price of TS TECH has demonstrated resilience, trading at approximately ¥1,500 per share as of the latest market close, an increase from approximately ¥1,200 per share at the beginning of the fiscal year. The stock has shown a 25% increase in value year-to-date.
In conclusion, TS TECH Co., Ltd. has a strong institutional backing combined with individual investor interest, underpinning its market performance and growth trajectory in the automotive component sector.
TS TECH Co., Ltd. Mission Statement
TS TECH Co., Ltd. focuses on providing high-quality automotive components, enhancing the driving experience through innovation and sustainability. The company aims to contribute to society by developing advanced technologies and fostering strong partnerships with customers.
The company's operations span several key areas, including seats, interior components, and other automotive parts, primarily targeted at the automobile manufacturing sector. With a commitment to quality and continuous improvement, TS TECH seeks to maintain robust relationships with manufacturers, ensuring that they meet the evolving needs of the automotive industry.
In fiscal year 2022, TS TECH reported consolidated sales of ¥327.6 billion (approximately $2.4 billion USD), reflecting a year-on-year increase of 9.2%. The company has maintained a strong gross margin of 25.4%, underlining its efficient cost management and pricing strategies.
The company operates in a competitive market, where efficiency and innovation are vital. TS TECH has invested in R&D, with expenditures reaching ¥8.5 billion in FY 2022, which accounted for approximately 2.6% of the total sales. These investments are directed towards developing lightweight materials and enhancing seat safety features, aligning with global automotive trends favoring sustainable and safe products.
The following table outlines TS TECH's key performance indicators over the last three fiscal years:
| Fiscal Year | Sales (¥ billion) | Net Profit (¥ billion) | Gross Margin (%) | R&D Expenditure (¥ billion) |
|---|---|---|---|---|
| 2020 | 299.8 | 11.5 | 24.1 | 6.9 |
| 2021 | 299.1 | 10.2 | 24.5 | 8.2 |
| 2022 | 327.6 | 13.2 | 25.4 | 8.5 |
TS TECH has also prioritized sustainability in its mission statement. The company is actively working towards reducing carbon emissions by 30% by 2030 from its 2020 levels, reflecting a strong commitment to environmental responsibility. By integrating eco-friendly practices in manufacturing, TS TECH aims to not only comply with international regulations but also to set industry benchmarks.
The company's employee engagement strategy emphasizes workforce diversity and continuous training. TS TECH employs approximately 11,000 staff members globally, with around 45% in research and development roles. This focus on human capital is designed to foster creativity and innovation, which are crucial in today’s fast-evolving automotive landscape.
In conclusion, TS TECH Co., Ltd. remains dedicated to achieving its mission by leveraging its strengths in technology, quality, and sustainability to meet customer needs effectively.
How TS TECH Co., Ltd. Works
TS TECH Co., Ltd. is a prominent manufacturer specializing in automotive parts, particularly in the production of seating systems and interior components. Established in 1972, the company has built a strong reputation for quality and innovation within the automotive supply industry.
As of 2023, TS TECH has been part of the Honda Group, which plays a significant role in its operational strategy and market positioning. The company's diverse product offerings include not only seats but also trim materials and various functional components that enhance vehicle comfort and safety.
Operational Structure
TS TECH operates through several manufacturing facilities, primarily located in regions with a strong automotive industry presence. These facilities are strategically positioned to serve key automotive markets in Japan, Asia, Europe, and North America.
- Manufacturing Facilities:
- Japan: 5 plants
- China: 3 plants
- Thailand: 2 plants
- United States: 1 plant
- Mexico: 1 plant
- Employees: Approximately 10,000 worldwide
Financial Performance
In the fiscal year 2022, TS TECH reported revenue of approximately JPY 353 billion (around USD 2.6 billion). The net income for the same year was approximately JPY 17.5 billion (USD 130 million) with a profit margin of about 4.95%.
Recent Financial Statistics
| Financial Metric | FY 2022 (JPY) | FY 2021 (JPY) | Change (%) |
|---|---|---|---|
| Revenue | 353 billion | 331 billion | 6.64% |
| Net Income | 17.5 billion | 16 billion | 9.38% |
| Profit Margin | 4.95% | 4.83% | 2.48% |
The company has focused on improving operational efficiencies, investing in advanced manufacturing technologies, and adopting sustainable practices, which has contributed to revenue growth.
Market Position and Competitors
TS TECH competes with other major automotive parts manufacturers such as Lear Corporation, Faurecia, and Adient. Its close relationship with Honda provides a competitive advantage in terms of product design and technology collaboration.
- Global Market Share: Approximately 2.5% of the automotive seating market
- Major Customers:
- Honda
- Mitsubishi
- Nissan
Research and Development
TS TECH invests heavily in R&D, with approximately JPY 5 billion allocated in 2022, focusing on innovations in lightweight materials and ergonomic design. This emphasis on R&D aids in developing new products that meet changing consumer demands and regulatory standards in the automotive industry.
Sustainability Initiatives
In response to growing environmental concerns, TS TECH has initiated several sustainability programs aimed at reducing its carbon footprint. The company has set a target to decrease greenhouse gas emissions by 25% by 2030 compared to 2020 levels.
- Use of recycled materials: Approximately 30% of materials in production
- Energy efficiency improvements: Targeting 15% reduction in energy consumption per unit produced by 2025
How TS TECH Co., Ltd. Makes Money
TS TECH Co., Ltd. is a prominent player in the automotive industry, specializing in the manufacturing of automotive components, particularly seating systems and interior parts. The company's revenue streams primarily emerge from various segments that cater to both domestic and international automobile manufacturers.
As of the fiscal year ending March 2023, TS TECH reported sales totaling approximately ¥248.4 billion (around $1.9 billion), a significant increase from the previous year’s sales of ¥231.7 billion. This growth can be attributed to the rising demand for vehicles and increased production volumes from key clients.
The company operates through several key business segments:
- Seating Systems
- Interior Components
- Other Automotive Parts
- Sales of Non-Automotive Products
The Seating Systems division represents the largest portion of TS TECH's revenue, accounting for approximately 65% of total sales. The division is supported by advanced manufacturing technologies and extensive R&D capabilities, allowing for innovative designs that meet stringent safety and comfort standards.
Following is a breakdown of the revenue contribution by segment for the fiscal year 2023:
| Business Segment | Revenue (¥ Billion) | Percentage of Total Revenue (%) |
|---|---|---|
| Seating Systems | 161.5 | 65 |
| Interior Components | 55.4 | 22 |
| Other Automotive Parts | 24.7 | 10 |
| Non-Automotive Products | 6.8 | 3 |
Additionally, TS TECH maintains strategic partnerships with leading automotive manufacturers such as Honda and Toyota, which further stabilizes its revenue base. For instance, the collaboration with Honda represents approximately 30% of the company’s total sales, showcasing a strong dependency on this key client.
The company's profitability is evidenced by its operating income, which was reported at approximately ¥18.5 billion for the fiscal year 2023, reflecting an operating margin of about 7.4%. This profitability is supported by efficient cost management strategies and a focus on high-value products.
Growingly, TS TECH is diversifying its product line-up to include electric vehicle (EV) components, aligning with the global shift towards sustainability. The revenue from EV-related products is projected to account for over 10% of total sales by 2025, driven by increasing investments in R&D and collaboration with leading EV manufacturers.
The market landscape continues to evolve, with TS TECH positioning itself for sustained growth through innovation and industry partnerships. The company's ability to adapt to market demands while maintaining operational efficiency will be pivotal in sustaining its revenue growth trajectory.
In summary, TS TECH Co., Ltd. employs a multifaceted approach to generate revenue, combining its core competencies in automotive components with strategic partnerships, market adaptability, and a focus on emerging trends in the automotive sector.
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