Kaga Electronics Overview
Kaga Electronics is Japan's largest independent (non-manufacturer-affiliated) electronics trading house. It combines a broad semiconductor and electronic-component distribution franchise with a growing global electronics manufacturing services (EMS) operation. The group's sales reached a record JPY 658.9 bn in FY2026. It sits between hundreds of component suppliers, including the Fujitsu, Mitsubishi Electric and Renesas-related lines it inherited through acquisitions, and thousands of industrial, automotive, medical, air-conditioning and consumer OEMs. Because it does not belong to any manufacturer's keiretsu, Kaga can offer multi-vendor procurement, design support and contract manufacturing from plants in Japan, China, Southeast Asia, India, Turkey and Mexico. Smaller segments sell PCs and IT products, produce CG content and recycle electronics. These diversify earnings, but components and EMS generate about 86% of sales. Under "Medium-Term Management Plan 2027", Kaga is consolidating Japan's fragmented component-distribution industry through tender offers for Kyoei Sangyo (2025) and Shinko Shoji (2026). The goal is JPY 800 bn in sales by FY2028, with ¥1 trillion as the longer-term ambition.
What the company does
Kaga Electronics is an electronics trading company that also manufactures. Its revenue comes from four reportable segments:
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Electronic Components Business (86.3% of FY2026 sales). This segment distributes semiconductors (microcontrollers, memory, analogue, power devices, ASICs, FPGAs) and general electronic components (passives, connectors, displays, modules). It also provides contract development and manufacturing of electronic equipment and assemblies (EMS). The main operating entities are the parent company, Kaga FEI Co., Ltd. (formerly Fujitsu Electronics), Kaga Devices Co., Ltd. (merged with Excel Co., Ltd. in April 2026), Kaga Tech, Kyoei Sangyo Co., Ltd. (from July 2025), Shinko Shoji Co., Ltd. (from August 2026), Kaga EMS Towada, Kyokuto Electric (旭東電気) and the overseas sales and manufacturing subsidiaries.
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Information Equipment Business (8.2%). This segment sells PCs, PC peripherals, consumer electronics, photo and video products and the company's own-brand products to educational institutions, government, corporates and mass retailers. It also sells security software for mobile devices.
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Software Business (0.5%). Contract CG video production and planning and development of amusement-related content and products.
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Other Businesses (4.9%). Repair and support of electronics, including PC and peripheral recycling and reuse (Kaga Micro Solution); manufacture and sale of amusement equipment, including the U.S. market (Kaga Amusement, Kaga Amusement America, Kaga Amusement Malaysia); sporting goods (Kaga Sports); and aerospace-related activities (Kaga Aero System).
Business model and revenue model
| Revenue type | Description | Approximate weight |
|---|---|---|
| Product resale (distribution) | Purchase and resale of semiconductors, components, PCs and peripherals. Revenue is recognised gross on a principal basis for most transactions. | Majority of sales |
| Manufacturing services (EMS) | Board assembly, box build and finished-product manufacturing for OEMs, mainly high-mix, low-to-mid volume | Second-largest stream. Contributed about JPY 11.8 bn of the JPY 21.9 bn sales increase in H1 FY2026 |
| Services | Repair, support, recycling and reuse, embedded software design support (e.g. Candera automotive HMI software), CG production | Small |
| Subscription / licensing | Security-software sales through retail channels | Small but high margin |
Almost all revenue comes from product sales and manufacturing services. Recurring software or licensing income is negligible.
Product resale (distribution): Description: Purchase and resale of semiconductors, components, PCs and peripherals. Revenue is recognised gross on a principal basis for most transactions.; Approximate weight: Majority of sales
Manufacturing services (EMS): Description: Board assembly, box build and finished-product manufacturing for OEMs, mainly high-mix, low-to-mid volume; Approximate weight: Second-largest stream. Contributed about JPY 11.8 bn of the JPY 21.9 bn sales increase in H1 FY2026
Services: Description: Repair, support, recycling and reuse, embedded software design support (e.g. Candera automotive HMI software), CG production; Approximate weight: Small
Subscription / licensing: Description: Security-software sales through retail channels; Approximate weight: Small but high margin
The company describes its model as a "trading company + manufacturer". It argues that the distribution network brings in customers and component purchasing scale, while the EMS business adds manufacturing value and stickier relationships. The integrated report presents the model as an independent trading company that also owns production sites. This lets it bundle component procurement, design support and contract manufacturing, which a pure distributor or pure EMS provider cannot do.
Value-chain position
Kaga sits in the middle of the electronics value chain:
Upstream: semiconductor and component manufacturers (Japanese, U.S., European and Asian). Its franchise base widened substantially with the Fujitsu Electronics acquisition in 2019 (Fujitsu and Socionext-related product lines), the Kyoei Sangyo acquisition in 2025 (Mitsubishi Electric devices, metal materials, printed circuit boards) and the Shinko Shoji acquisition in 2026 (Renesas- and other Japanese-supplier-related lines).
Midstream: distribution, inventory buffering, technical field support, spot sourcing, kitting, and EMS assembly at its own plants.
Downstream: OEMs in industrial equipment, air-conditioning, medical devices, automotive electronics, amusement, office equipment and consumer electronics. Also public-sector and education PC buyers and mass retailers.
Customer types and end-markets
| End-market | Exposure and recent dynamics (FY2026) |
|---|---|
| Industrial equipment | Core distribution and EMS market. Hit by a long inventory correction in FY2024–FY2025, now recovering. |
| Air-conditioning equipment | A major EMS growth driver after overseas capacity expansion. |
| Medical devices | Strong EMS demand in FY2026 and Q1 FY2027. |
| Automotive | Embedded HMI software and component sales. EMS demand from some automotive customers slowed in FY2026. Electrification and autonomous driving are cited as medium-term drivers. |
| Data-centre / AI servers (memory) | About JPY 41.1 bn of spot memory sales in FY2026, concentrated in Q4, driven by tight supply of general-purpose memory for AI servers. |
| Education / public sector | PC sales under phase two of Japan's GIGA School programme. |
| Retail / consumer | PCs, peripherals and security software through mass retailers. |
| Amusement | Amusement equipment for Japanese and U.S. operators. |
Industrial equipment: Exposure and recent dynamics (FY2026): Core distribution and EMS market. Hit by a long inventory correction in FY2024–FY2025, now recovering.
Air-conditioning equipment: Exposure and recent dynamics (FY2026): A major EMS growth driver after overseas capacity expansion.
Medical devices: Exposure and recent dynamics (FY2026): Strong EMS demand in FY2026 and Q1 FY2027.
Automotive: Exposure and recent dynamics (FY2026): Embedded HMI software and component sales. EMS demand from some automotive customers slowed in FY2026. Electrification and autonomous driving are cited as medium-term drivers.
Data-centre / AI servers (memory): Exposure and recent dynamics (FY2026): About JPY 41.1 bn of spot memory sales in FY2026, concentrated in Q4, driven by tight supply of general-purpose memory for AI servers.
Education / public sector: Exposure and recent dynamics (FY2026): PC sales under phase two of Japan's GIGA School programme.
Retail / consumer: Exposure and recent dynamics (FY2026): PCs, peripherals and security software through mass retailers.
Amusement: Exposure and recent dynamics (FY2026): Amusement equipment for Japanese and U.S. operators.
The company's own description
The FY2026 securities report describes the group as developing, manufacturing and selling semiconductors and general electronic components and providing EMS. It describes the other segments as selling finished IT products, producing CG content and amusement products, and running repair, recycling, amusement-equipment and sporting-goods businesses. Its philosophy is "Everything for the customer" (すべてはお客様のために). Its vision has two parts: to be the No.1 company in Japan's industry and to survive global competition. Its code of conduct is summarised as "F.Y.T.", "3G" and "Kaga-ism".
Independent characterisation
In practice, Kaga is a consolidator. It is a low-margin, high-turnover distributor (gross margin about 13%, operating margin 4–5%) that has steadily raised its earnings quality by adding EMS capacity and higher-margin niches such as security software, recycling and U.S. amusement equipment. Its independence from any manufacturer group is a structural advantage at a time when Japanese component makers are shrinking their captive distributor networks. That independence is what allows it to absorb distributors previously tied to Fujitsu, Mitsubishi Electric and NEC/Renesas. The main analytical tension is that much reported profit growth over FY2024–FY2027 comes from acquisition gains (negative goodwill) and one-off spot sales. This needs to be separated from organic progress in EMS and the base distribution business.
Strategy
Medium-Term Management Plan 2027 (FY2026–FY2028, announced 6 November 2024, briefing 28 November 2024)
Basic policy: raise corporate value through management that emphasises profitability and capital efficiency.
Long-term aspiration: a ¥1 trillion sales company by the 60th anniversary of founding.
Three priority themes:
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Further improve earning power: expand core businesses (components and EMS), pursue M&A, and create new businesses.
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Strengthen the management base: a strategic capital policy, a revised shareholder-return policy, human-capital investment and DX.
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Promote sustainability (SDGs) management: CO2 reduction and renewable-energy adoption; human-capital investment; early appointment of female directors.
Quantitative targets
| Metric | FY2025 actual (base) | FY2026 actual | FY2028 target |
|---|---|---|---|
| Net sales (JPY bn) | 547.8 | 658.9 | 800.0 or more |
| Operating income (JPY bn) | 23.6 | 27.8 | 36.0 or more |
| Operating margin (%) | 4.3 | 4.2 | 5.0 |
| ROE (%) | 10.8 | 17.8 | 12.0 or more |
| Consolidated payout ratio (%) | 33.8 | 22.3 | 30–40 |
| DOE (%) | 3.7 | 4.0 | 4.0 |
Net sales (JPY bn): FY2025 actual (base): 547.8; FY2026 actual: 658.9; FY2028 target: 800.0 or more
Operating income (JPY bn): FY2025 actual (base): 23.6; FY2026 actual: 27.8; FY2028 target: 36.0 or more
Operating margin (%): FY2025 actual (base): 4.3; FY2026 actual: 4.2; FY2028 target: 5.0
ROE (%): FY2025 actual (base): 10.8; FY2026 actual: 17.8; FY2028 target: 12.0 or more
Consolidated payout ratio (%): FY2025 actual (base): 33.8; FY2026 actual: 22.3; FY2028 target: 30–40
DOE (%): FY2025 actual (base): 3.7; FY2026 actual: 4.0; FY2028 target: 4.0
Business-unit targets (FY2028)
| Business unit | Sales target (JPY Bn) | Profit target (JPY Bn) | Implied margin (%) |
|---|---|---|---|
| Components | 400 | 16.5 | 4.1 |
| EMS | 230 | 13.5 | 5.9 |
| CSI (PC, IT and solutions) | 55 | 4.0 | 7.3 |
Components: Sales target (JPY bn): 400; Profit target (JPY bn): 16.5; Implied margin (%): 4.1
EMS: Sales target (JPY bn): 230; Profit target (JPY bn): 13.5; Implied margin (%): 5.9
CSI (PC, IT and solutions): Sales target (JPY bn): 55; Profit target (JPY bn): 4.0; Implied margin (%): 7.3
The business-unit targets add up to JPY 685 bn. Reaching the JPY 800 bn headline therefore requires about JPY 115 bn from further M&A. The Shinko Shoji acquisition (FY2026 sales of JPY 99.1 bn) covers most of that gap.
Capital allocation
The plan commits to maintaining financial discipline while directing the cash generated during the plan period to growth investment (M&A, EMS capacity, new businesses) and shareholder returns. In FY2026 this meant:
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JPY 11.7 bn to acquire Kyoei Sangyo.
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JPY 14.4 bn of buybacks: 4.92 million shares (9.4% of shares outstanding) bought at JPY 2,938 via ToSTNeT-3 in August 2025 and then cancelled.
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A dividend raised from ¥110 to ¥140, including ¥30 of special dividends.
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A total return ratio forecast at the time of the buyback of 83.3%.
Strategic initiatives in the last 24 months
| Initiative | Date | Description |
|---|---|---|
| MTP 2027 launch | Nov 2024 | Three-year plan; new DOE 4.0% floor; payout ratio band 30–40% |
| 2-for-1 stock split | Oct 2024 | Liquidity and retail accessibility |
| Kyoei Sangyo acquisition | Jul–Nov 2025 | Tender offer, squeeze-out and purchase of Mitsubishi Electric's stake. Complementary semiconductor lines plus metal materials, PCBs and software. |
| Governance reform | Jun 2025 | Transition to a company with an Audit & Supervisory Committee |
| Capital-efficiency buyback | Aug 2025 | JPY 15 bn cap / 4.92 million shares; cancelled |
| Subsidiary consolidation | Apr 2026 | Kaga Devices and Excel merged |
| Shinko Shoji acquisition | May–Oct 2026 | Tender offer at JPY 1,580; 72.45% stake; squeeze-out; delisted 29 October 2026. Restar ended its capital alliance with Shinko and tendered its shares. |
| Overseas EMS capacity expansion | FY2025–FY2026 | Malaysia, Turkey, Mexico, and others |
| India automotive EMS | 2,026 | New contract-manufacturing company with a local partner for automotive components |
| Integrated Report 2026 | Oct 2026 | Ninth edition. Covers progress on MTP 2027, synergies from Kyoei Sangyo and Shinko Shoji, the EMS growth strategy, and messages from the CEO, COO and CFO. |
| Sustainability KPIs | Ongoing | Renewable-energy adoption targets; electrification of company vehicles; human capital |
MTP 2027 launch: Date: Nov 2024; Description: Three-year plan; new DOE 4.0% floor; payout ratio band 30–40%
2-for-1 stock split: Date: Oct 2024; Description: Liquidity and retail accessibility
Kyoei Sangyo acquisition: Date: Jul–Nov 2025; Description: Tender offer, squeeze-out and purchase of Mitsubishi Electric's stake. Complementary semiconductor lines plus metal materials, PCBs and software.
Governance reform: Date: Jun 2025; Description: Transition to a company with an Audit & Supervisory Committee
Capital-efficiency buyback: Date: Aug 2025; Description: JPY 15 bn cap / 4.92 million shares; cancelled
Subsidiary consolidation: Date: Apr 2026; Description: Kaga Devices and Excel merged
Shinko Shoji acquisition: Date: May–Oct 2026; Description: Tender offer at JPY 1,580; 72.45% stake; squeeze-out; delisted 29 October 2026. Restar ended its capital alliance with Shinko and tendered its shares.
Overseas EMS capacity expansion: Date: FY2025–FY2026; Description: Malaysia, Turkey, Mexico, and others
India automotive EMS: Date: 2026; Description: New contract-manufacturing company with a local partner for automotive components
Integrated Report 2026: Date: Oct 2026; Description: Ninth edition. Covers progress on MTP 2027, synergies from Kyoei Sangyo and Shinko Shoji, the EMS growth strategy, and messages from the CEO, COO and CFO.
Sustainability KPIs: Date: Ongoing; Description: Renewable-energy adoption targets; electrification of company vehicles; human capital
Management guidance (FY2027)
| Item | Initial (14 May 2026) | Revised (13 Aug 2026) | Revised (25 Sep 2026) |
|---|---|---|---|
| Net sales (JPY bn) | 645.0 | 660.0 | 760.0 |
| Operating income (JPY bn) | 28.5 | 30.0 | 32.0 |
| Ordinary income (JPY bn) | 28.0 | 30.0 | 32.0 |
| Net income (JPY bn) | 20.0 | 22.0 | 29.0 |
| Dividend per share (JPY) | 140 | 140 | Raised |
Net sales (JPY bn): Initial (14 May 2026): 645.0; Revised (13 Aug 2026): 660.0; Revised (25 Sep 2026): 760.0
Operating income (JPY bn): Initial (14 May 2026): 28.5; Revised (13 Aug 2026): 30.0; Revised (25 Sep 2026): 32.0
Ordinary income (JPY bn): Initial (14 May 2026): 28.0; Revised (13 Aug 2026): 30.0; Revised (25 Sep 2026): 32.0
Net income (JPY bn): Initial (14 May 2026): 20.0; Revised (13 Aug 2026): 22.0; Revised (25 Sep 2026): 29.0
Dividend per share (JPY): Initial (14 May 2026): 140; Revised (13 Aug 2026): 140; Revised (25 Sep 2026): Raised
The 25 September revision added Shinko Shoji's expected results from Q2 onward (sales of JPY 100 bn, operating and ordinary income of JPY 2.0 bn each, net income of JPY 1.0 bn) and an expected JPY 6.0 bn of negative goodwill as an extraordinary gain. At the October 2026 share price, the forecast dividend yield of about 2.9% implies a full-year dividend of roughly ¥160.
Management attributes the drop in initial FY2027 guidance to the absence of FY2026's roughly JPY 41.1 bn of spot sales and FY2026's extraordinary gains. It expects underlying growth to continue.
Products & Services
Electronic Components Business
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| Semiconductor distribution (parent / Kaga Devices / Kaga Tech) | Multi-vendor sales of microcontrollers, memory (DRAM, NAND), analogue and power devices, logic, FPGAs, sensors, LCDs and modules. Field application engineering and design-in support. | Industrial, automotive, medical, consumer and amusement OEMs | Independent multi-vendor line card. In April 2026, Kaga Devices absorbed Excel's display and component distribution business. |
| Kaga FEI (formerly Fujitsu Electronics) | Distribution of Fujitsu-group, Socionext-related and third-party semiconductors and components. Custom SoC/ASIC support. Embedded systems. Overseas sales in Europe, the Americas and Asia. | Industrial, automotive, telecom, office equipment | Largest subsidiary: FY2026 sales of JPY 182.2 bn and total assets of JPY 101.9 bn. |
| Candera (embedded HMI software) | Embedded software development tools and design services for automotive human-machine interfaces, e.g. cluster and infotainment graphics. | Automotive Tier-1s and OEMs | Adds design-in value to component sales. |
| Kyoei Sangyo | Semiconductor and device sales (including Mitsubishi Electric devices), metal materials, industrial equipment, PCB manufacturing and software development. | Industrial and infrastructure customers | Consolidated from Q2 FY2026. The product lines largely do not overlap with Kaga's own, and Kaga plans to use its EMS network to add value to Kyoei Sangyo's business. |
| Shinko Shoji | Sales and import/export of integrated circuits, semiconductor devices, other components, assembly products and electronic equipment. Has its own EMS operations. | Industrial, automotive, consumer | Consolidated from 10 August 2026. FY2026 sales of JPY 99.1 bn. |
| Spot sourcing | Procurement of scarce parts during shortages, e.g. general-purpose memory in FY2026. | Any OEM facing shortages | Large in FY2023 and FY2026. About JPY 41.1 bn in FY2026. |
| EMS: overseas | PCB assembly, box build and finished-product manufacturing in Malaysia, Thailand, China, India, Turkey and Mexico. High-mix production with component sourcing included. | Air-conditioning, medical, industrial, automotive and amusement OEMs | Overseas capacity was expanded continuously through FY2025–FY2026. Reported in 2026 to be setting up a new contract-manufacturing company in India with a local partner to make automotive parts. |
| EMS: domestic | Kaga EMS Towada (Aomori; formerly Towada Pioneer), Kyokuto Electric and Kaga Tech facilities | Japanese OEMs needing domestic production, quick turnaround or high reliability | Domestic sites cover high-reliability and short-lead-time work. |
| Kaga Aero System | Aerospace-related electronics and manufacturing, based in Wakayama Prefecture | Aerospace and space-sector customers | Established March 2022 as a new-business seed. |
Information Equipment Business
| Offering | Description | Target customers | Notes |
|---|---|---|---|
| PC distribution | Notebook and desktop PCs from major makers, plus configuration and kitting | Schools (GIGA School), public sector, corporates, mass retailers | Drove FY2026 growth through school replacement and the Windows 10 end of support. |
| Peripherals and consumer electronics | Displays, storage, printers, photo and video products | Retailers and corporates | Commodity products with high volume. |
| Own-brand products | Products sold under the company's own brands | Retailers | Kaga's long-standing consumer brand is "TAXAN" (also its website domain). |
| Mobile security software | Security software for mobile devices sold through retail and carrier-related channels | Consumers through retail | High margin. A new release drove replacement demand in FY2026. |
Software Business
| Offering | Description | Target customers |
|---|---|---|
| CG video production | Contract production of computer-graphics video for games, amusement machines and promotions | Game publishers and amusement-machine makers |
| Amusement content planning and development | Planning and development of amusement-related products | Amusement operators and manufacturers |
Other Businesses
| Offering | Description | Target customers |
|---|---|---|
| Repair, support and recycling (Kaga Micro Solution) | Repair of electronics. Collection, data erasure, refurbishment and resale of PCs and peripherals. | Corporates, leasing companies, public sector |
| Amusement equipment (Kaga Amusement, Kaga Amusement America, Kaga Amusement Malaysia) | Manufacture and sale of amusement machines, including for the U.S. market | Amusement-facility operators in Japan and the U.S. |
| Sporting goods (Kaga Sports) | Sale of sporting goods | Retail and specialist channels |
Pricing is negotiated per contract and is not publicly disclosed for any product line. As a distributor, Kaga's "launches" are franchise additions and capacity expansions rather than proprietary product versions.
Financial Narrative
Income statement
Diluted EPS equals basic EPS because there are no potentially dilutive shares. The FY2026 dividend of ¥140 included special dividends of ¥5 (interim) and ¥25 (year-end).
Margins
Revenue CAGR from FY2022 to FY2026 was about 7.4%. Operating-income CAGR over the same period was about 7.4%, and net-income CAGR about 19.2%. The net-income rate is flattered by extraordinary gains in FY2026.
Quarterly profile, FY2026
Q1 and the H1 cumulative figures are as reported. Q3 is derived from the nine-month cumulative figures, and Q4 is the full-year figure less nine-month cumulative figures, so both are approximate. Q4 sales include most of the roughly JPY 41.1 bn of spot memory sales.
Balance sheet
On the company's narrower definition of interest-bearing debt, borrowings were JPY 20,390 M at March 2025 and JPY 74,969 M at March 2026. Cash and cash equivalents in the cash-flow statement were JPY 72,681 M and JPY 88,292 M respectively.
Cash flow
FY2024 acquisitions were a net cash inflow. Investing cash flows for FY2022–FY2024 are approximations based on aggregator data. FY2025 and FY2026 investing and financing cash flows are as reported in the earnings releases.
Ratios
Notes on the ratios:
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ROE is the company-reported figure.
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The FY2022 ordinary-income ROA is approximate.
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DSO, DIO and DPO are calculated on year-end balances against annual sales and cost of sales.
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Payout ratios for FY2022–FY2024 are calculated as split-adjusted DPS divided by EPS. The FY2025 and FY2026 payout ratios are as reported.
Commentary on trends, inflections and drivers
Revenue. Over five years the top line has gone through two shortage-driven peaks, FY2023 and FY2026, with a correction in between. FY2023 sales of JPY 608.1 bn were inflated by spot sales during the 2021–2022 component shortage. When that demand vanished, a large customer relationship wound down, and industrial customers ran down inventories, FY2024 sales fell 10.8%. FY2025 was flat (+0.9%): EMS and amusement growth offset weaker component sales. FY2026 broke out to a record JPY 658.9 bn (+20.3%). About JPY 41.1 bn of spot memory sales into the AI-server shortage, roughly nine months of Kyoei Sangyo, and steady EMS growth drove the increase. Underlying growth excluding spot sales and M&A was in the mid-single digits.
Gross margin has been unusually stable at 12.2–13.1% despite large swings in volume. Mix improvement offset low-margin spot business: more EMS, more security software, and the exit from low-margin products in FY2025 (Q1 FY2025 gross margin rose 0.5 points on mix). The slight dip to 13.0% in FY2026 reflects thin-margin memory spot sales.
Operating margin peaked at 5.3% in FY2023 and slipped to 4.2% by FY2026. The cause is SG&A, which rose from 7.6% to 8.7–8.8% of sales. Kaga raised wages from FY2025, logistics costs went up, and Kyoei Sangyo brought its cost base into the group. The medium-term plan target of 5.0% therefore depends on operating leverage from acquired sales and on EMS mix.
Net income is the most distorted line:
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FY2024 included about JPY 1.4 bn of securities gains and about JPY 0.4 bn of negative goodwill.
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FY2025 fell 16.0% as those gains fell away.
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FY2026's record JPY 31.1 bn (+82.0%) included about JPY 10.9 bn of extraordinary gains: roughly JPY 7.6 bn of bargain-purchase gain on Kyoei Sangyo (acquisition cost JPY 11.7 bn) plus gains on sales of cross-shareholdings.
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FY2027 guidance again includes a large non-cash gain, about JPY 6.0 bn of negative goodwill on Shinko Shoji.
Recurring net income is better approximated at JPY 20–23 bn.
Balance sheet. Kaga moved from net debt in FY2022 to net cash of about JPY 50 bn by FY2025, with the equity ratio rising from 38.8% to 54.4%. FY2026 reversed part of this. Receivables jumped JPY 59 bn because Q4 spot sales and Kyoei Sangyo's balance sheet were added, inventories rose JPY 16 bn, and short-term borrowings rose to fund working capital and the JPY 14.4 bn buyback. The equity ratio fell to 45.5%, and net cash shrank to about JPY 9 bn. By 30 June 2026, as Q4 receivables were collected, total assets had fallen to JPY 373.9 bn and the equity ratio had recovered to 51.1%. The Shinko Shoji acquisition (about JPY 33.1 bn for 72.45%, plus the squeeze-out) was funded by bank borrowings and will add leverage from Q2 FY2027.
Cash flow follows the working-capital cycle. Operating cash flow was negative in FY2022 (shortage stock-building) and FY2026 (Q4 spot receivables) and strongly positive in FY2023–FY2025 (JPY 25–31 bn a year). Capex is light at JPY 3–5 bn a year, consistent with an asset-light distributor carrying modest EMS capacity. Cumulative free cash flow over five years was about JPY 59.6 bn. Dividends of about JPY 24.7 bn and buybacks of about JPY 18.1 bn absorbed most of it.
Returns. ROE has stayed above 10% in every year and averaged about 15.7% over five years. The FY2026 figure of 17.8% is inflated by the bargain-purchase gain. The medium-term target of 12% or more looks conservative against recurring earnings, especially after the August 2025 buyback cut the share count by 9.4%.
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Segment Overview
| Segment | Contents | Key entities |
|---|---|---|
Electronic Components | Semiconductor and general component sales. EMS. Embedded software and design support. Kyoei Sangyo's device, metal-material, PCB and software businesses. | Kaga Electronics (parent), Kaga FEI, Kaga Devices, Kaga Tech, Kyoei Sangyo, overseas sales and EMS subsidiaries (Hong Kong, China, Singapore, Taiwan, Thailand, Malaysia, India, Turkey, Mexico, Europe, U.S.), Kaga EMS Towada, Kyokuto Electric, and Shinko Shoji from August 2026 |
Information Equipment | PCs, peripherals, consumer electronics, photo and video, own-brand products, mobile security software | Kaga Electronics (parent), Kaga Solnet and related companies |
Software | CG video production, amusement product planning and development | Digital Media Lab and related companies |
Other | Repair and support, recycling and reuse, amusement equipment, sporting goods, aerospace | Kaga Micro Solution, Kaga Amusement, Kaga Amusement America, Kaga Amusement Malaysia, Kaga Sports, Kaga Aero System |
Revenue by Segment
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Electronic Components (JPY Mn) | 472,583 | 472,910 | 568,834 |
Information Equipment (JPY Mn) | 44,305 | 42,652 | 54,182 |
Software (JPY Mn) | 2,567 | 3,387 | 3,307 |
Other (JPY Mn) | 23,241 | 28,829 | 32,617 |
Total (JPY Mn) | 542,697 | 547,779 | 658,941 |
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View Subscription PlansResults by Segment
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Electronic Components segment income (JPY Mn) | 20,887 | 16,927 | 19,304 |
Information Equipment segment income (JPY Mn) | 2,924 | 3,307 | 4,444 |
Software segment income (JPY Mn) | 370 | 509 | 365 |
Other segment income (JPY Mn) | 1,555 | 2,707 | 3,487 |
Consolidated operating income (JPY Mn) | 25,845 | 23,601 | 27,824 |
Segment Margins & Growth (%)
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Electronic Components margin (%) | 4.4 | 3.6 | 3.4 |
Information Equipment margin (%) | 6.6 | 7.8 | 8.2 |
Software margin (%) | 14.4 | 15.0 | 11.0 |
Other margin (%) | 6.7 | 9.4 | 10.7 |
Segment Overview (Annual)
| Segment | Sales YoY (%) | Segment income YoY (%) | Share of FY2026 sales (%) |
|---|---|---|---|
Electronic Components | 20.3 | 14.0 | 86.3 |
Information Equipment | 27.0 | 34.4 | 8.2 |
Software | -2.4 | -28.2 | 0.5 |
Other | 13.1 | 28.8 | 4.9 |
Segment Revenue
| Segment | Segment assets FY2025 | Segment assets FY2026 | Depreciation FY2025 | Depreciation FY2026 |
|---|---|---|---|---|
Electronic Components | 281,610 | 372,659 | 3,831 | 4,570 |
Information Equipment | 26,091 | 31,674 | 81 | 95 |
Software | 2,310 | 2,159 | 87 | 108 |
Other | 16,522 | 16,729 | 482 | 546 |
Peer Comparison
| Company | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
Kaga Electronics and subsidiaries, excl. Kaga FEI and Excel: sales (JPY Mn) | 281,075 | 348,034 | 315,404 |
Kaga Electronics and subsidiaries: operating income (JPY Mn) | 15,461 | 21,899 | 19,580 |
Kaga FEI: sales (JPY Mn) | 149,455 | 199,548 | 190,684 |
Kaga FEI: operating income (JPY Mn) | 3,654 | 8,103 | 4,413 |
Excel: sales (JPY Mn) | 65,296 | 60,481 | 36,608 |
Excel: operating income (JPY Mn) | 1,937 | 2,072 | 1,653 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Net sales (JPY Mn) | 495,827 | 608,064 | 542,697 | 547,779 | 658,941 |
Gross profit (JPY Mn) | 60,547 | 78,514 | 70,453 | 71,666 | 85,350 |
SG&A (JPY Mn) | 39,632 | 46,265 | 44,607 | 48,064 | 57,525 |
Operating income (JPY Mn) | 20,915 | 32,249 | 25,845 | 23,601 | 27,824 |
Depreciation & amortisation (JPY Mn) | 3,848 | 4,054 | 4,284 | 4,480 | 5,307 |
EBITDA, operating income + D&A (JPY Mn) | 24,763 | 36,303 | 30,129 | 28,081 | 33,131 |
Ordinary income (JPY Mn) | 21,456 | 32,739 | 25,976 | 22,593 | 29,930 |
Pre-tax income (JPY Mn) | 21,347 | 32,458 | 28,100 | 23,710 | 40,375 |
Net income attributable to owners (JPY Mn) | 15,401 | 23,070 | 20,345 | 17,083 | 31,099 |
EPS basic, split-adjusted (JPY) | 288.23 | 439.33 | 387.31 | 325.08 | 627.71 |
EPS diluted (JPY) | 288.23 | 439.33 | 387.31 | 325.08 | 627.71 |
Dividend per share, split-adjusted (JPY) | 40 | 70 | 110 | 110 | 140 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 12.2 | 12.9 | 13.0 | 13.1 | 13.0 |
SG&A ratio (%) | 8.0 | 7.6 | 8.2 | 8.8 | 8.7 |
Operating margin (%) | 4.2 | 5.3 | 4.8 | 4.3 | 4.2 |
EBITDA margin (%) | 5.0 | 6.0 | 5.6 | 5.1 | 5.0 |
Net margin (%) | 3.1 | 3.8 | 3.7 | 3.1 | 4.7 |
Key Financials
| Metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 |
|---|---|---|---|---|
Net sales (JPY Mn) | 138,086 | 150,873 | 156,500 | 213,482 |
Operating income (JPY Mn) | 6,484 | 6,565 | 6,350 | 8,425 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (JPY Mn) | 272,139 | 286,217 | 286,792 | 305,671 | 403,694 |
Cash & deposits incl. short-term deposits (JPY Mn) | 41,051 | 52,600 | 66,596 | 80,188 | 89,706 |
Trade receivables (JPY Mn) | 120,672 | 128,945 | 112,351 | 113,902 | 172,985 |
Inventories (JPY Mn) | 62,606 | 56,204 | 54,738 | 51,772 | 68,003 |
Total current assets (JPY Mn) | 233,984 | 245,572 | 244,629 | 257,164 | 342,368 |
Goodwill & other intangibles (JPY Mn) | 3,163 | 2,702 | 2,092 | 1,738 | 1,911 |
Trade payables (JPY Mn) | 86,493 | 79,232 | 71,392 | 73,340 | 94,373 |
Short-term debt incl. current portion of long-term debt (JPY Mn) | 23,858 | 19,585 | 10,604 | 19,890 | 68,598 |
Long-term debt (JPY Mn) | 25,136 | 20,600 | 20,500 | 10,500 | 11,771 |
Total debt incl. lease liabilities (JPY Mn) | 48,994 | 40,185 | 31,104 | 30,390 | 80,369 |
Net debt, negative = net cash (JPY Mn) | 7,943 | -12,415 | -35,492 | -49,798 | -9,337 |
Net assets (JPY Mn) | 105,800 | 129,737 | 151,231 | 166,379 | 183,516 |
Equity ratio (%) | 38.8 | 45.3 | 52.6 | 54.4 | 45.5 |
Book value per share, split-adjusted (JPY) | 2,013.11 | 2,467.68 | 2,871.11 | 3,162.68 | 3,850.35 |
Working capital (JPY Mn) | 101,066 | 118,025 | 139,826 | 139,460 | 146,924 |
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View Subscription PlansCash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (JPY Mn) | -1,554 | 30,569 | 29,385 | 25,047 | -2,471 |
Capital expenditure (JPY Mn) | 3,276 | 3,691 | 5,417 | 5,245 | 3,789 |
Free cash flow (JPY Mn) | -4,830 | 26,878 | 23,968 | 19,802 | -6,260 |
Dividends paid (JPY Mn) | 2,551 | 4,590 | 6,033 | 5,773 | 5,741 |
Share buybacks (JPY Mn) | 3,681 | 2 | 6 | 1 | 14,448 |
Cash paid for acquisitions, net (JPY Mn) | 0 | 0 | -564 | 0 | 7,372 |
Investing cash flow (JPY Mn) | -3,583 | -3,547 | -3,806 | -9,967 | -3,466 |
Financing cash flow (JPY Mn) | -11,011 | -17,107 | -15,434 | -7,343 | 20,329 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 15.6 | 19.6 | 14.5 | 10.8 | 17.8 |
ROA, ordinary income / average total assets (%) | 8.3 | 11.7 | 9.1 | 7.6 | 8.4 |
ROA, net income / average total assets (%) | 5.1 | 7.2 | 5.6 | 5.0 | 4.9 |
ROIC (%) | 15.5 | 19.9 | 16.1 | 14.4 | 14.8 |
Current ratio (x) | 1.76 | 1.93 | 2.33 | 2.19 | 1.75 |
Debt / equity (x) | 0.46 | 0.31 | 0.21 | 0.18 | 0.44 |
Net debt / EBITDA (x) | 0.32 | -0.34 | -1.18 | -1.77 | -0.28 |
Interest coverage, operating income / interest expense (x) | 66.4 | 43.1 | 29.0 | 30.7 | 30.6 |
Asset turnover (x) | 1.95 | 2.18 | 1.89 | 1.85 | 1.86 |
Days sales outstanding (days) | 88.8 | 77.4 | 75.6 | 75.9 | 95.8 |
Days inventory outstanding (days) | 52.5 | 38.7 | 42.3 | 39.7 | 43.3 |
Days payables outstanding (days) | 72.5 | 54.6 | 55.2 | 56.2 | 60.1 |
Cash conversion cycle (days) | 68.8 | 61.5 | 62.7 | 59.4 | 79.0 |
Dividend payout ratio (%) | 13.9 | 15.9 | 28.4 | 33.8 | 22.3 |
DOE (%) | 2.2 | 3.1 | 3.8 | 3.7 | 4.0 |
Revenue by Region
| Region | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan (JPY Mn) | 320,028 | 309,158 | 399,592 |
Asia excl. China (JPY Mn) | 98,695 | 101,758 | 108,604 |
China (JPY Mn) | 51,867 | 57,006 | 67,131 |
North America (JPY Mn) | 45,936 | 50,862 | 55,367 |
Europe (JPY Mn) | 26,168 | 28,993 | 28,245 |
Total (JPY Mn) | 542,694 | 547,777 | 658,939 |
Geographic Revenue
| Region | FY2025 YoY | FY2026 YoY |
|---|---|---|
Japan | -3.4 | 29.3 |
Asia excl. China | 3.1 | 6.7 |
China | 9.9 | 17.8 |
North America | 10.7 | 8.9 |
Europe | 10.8 | -2.6 |
Revenue by Region (%)
| Region | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Japan share (%) | 59.0 | 56.4 | 60.6 |
Asia excl. China share (%) | 18.2 | 18.6 | 16.5 |
China share (%) | 9.6 | 10.4 | 10.2 |
North America share (%) | 8.5 | 9.3 | 8.4 |
Europe share (%) | 4.8 | 5.3 | 4.3 |
Revenue by Region (FY2022–FY2023)
| Region | FY2022 | FY2023 |
|---|---|---|
Japan (JPY Mn) | 263,415 | 335,201 |
North America (JPY Mn) | 34,101 | 43,679 |
Europe (JPY Mn) | 16,874 | 23,785 |
Asia incl. China (JPY Mn) | 181,436 | 205,397 |
Share Price & Returns
| Date | Close (JPY) | Note |
|---|---|---|
7 Aug 2025 | 2,938 | Price used for the ToSTNeT-3 buyback |
13 Feb 2026 | 4,095 | After Q3 FY2026 results |
31 Mar 2026 | 3,615 | Low for calendar 2026 to date |
5 Jun 2026 | 5,050 | First-half 2026 high |
26 Jun 2026 | 4,250 | Shinko Shoji tender offer period |
6 Aug 2026 | 4,965 | After the tender offer succeeded |
6 Oct 2026 | 5,540 | Latest reference point; market cap about JPY 290.8 bn |
Market Valuation
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Market capitalisation at fiscal year-end (JPY Mn) | 85,439 | 131,569 | 167,589 | 141,797 | 175,862 |
Enterprise value at fiscal year-end (JPY Mn) | 98,942 | 131,548 | 144,898 | 100,584 | 135,617 |
Valuation Multiples (x) and Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
P/E (x) | 5.6 | 5.7 | 8.2 | 8.3 | 5.7 |
EV/EBITDA (x) | 4.0 | 3.6 | 4.8 | 3.6 | 4.1 |
EV/Sales (x) | 0.20 | 0.22 | 0.27 | 0.18 | 0.21 |
P/B (x) | 0.81 | 1.01 | 1.11 | 0.85 | 0.96 |
Dividend yield (%) | 2.9 | 3.1 | 3.7 | 4.2 | 3.0 |
Valuation Snapshot
| Multiple | Value |
|---|---|
P/E on company FY2027 forecast (x) | 9.1 |
P/B on March 2026 BPS (x) | 1.38 |
Forecast dividend yield (%) | 2.89 |
EV/EBITDA (trailing, September 2026) (x) | 5.7 |
EV/Sales (trailing, September 2026) (x) | 0.29 |
ROE, FY2026 (%) | 17.8 |
Capital Markets
| Item | Value |
|---|---|
Consensus target price (October 2026) (JPY) | 5,833 |
Recent broker action | Domestic mid-tier broker: Outperform; target raised from JPY 4,500 to JPY 5,400 (16 June 2026) and to JPY 6,000 (8 September 2026) |
Analyst ratings (August 2026) | 3 analysts: 2 Buy, 1 Neutral |
FY2027 ordinary income consensus (October 2026) (JPY Mn) | 34,125 |
FY2027 ordinary income company forecast (JPY Mn) | 32,000 |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share, split-adjusted (JPY) | 40 | 70 | 110 | 110 | 140 |
Total dividends paid (JPY Mn) | 2,551 | 4,590 | 6,033 | 5,773 | 5,741 |
Authorisation Details
| Authorisation | Date | Size | Execution |
|---|---|---|---|
ToSTNeT-3 buyback and cancellation | 7 Aug 2025 | Up to 4.92 million shares (9.4%) or JPY 15 bn | Executed on 8 August 2025 at JPY 2,938. 4,917,400 shares cancelled on 18 August 2025. FY2026 buyback outlay of JPY 14.4 bn. |
Credit Ratings
| Agency | Rating | Outlook | Latest action |
|---|---|---|---|
Japan Credit Rating Agency (JCR) | A (long-term issuer) | Stable | 18 May 2026 comment: Shinko Shoji tender offer does not immediately affect the rating, given cash-flow generation and financial headroom. JCR will watch post-acquisition integration, synergies and financial policy. |
Bucket Details
| Bucket | Amount (JPY Mn) |
|---|---|
Short-term borrowings | 68,398 |
Current portion of long-term debt | 200 |
Long-term debt (due after one year) | 11,771 |
Total debt including lease liabilities | 80,369 |
Analyst Conclusions
Management guidance (FY2027, revised 25 September 2026)
| Metric | FY2026 actual | FY2027 guidance | Change (%) |
|---|---|---|---|
| Net sales (JPY bn) | 658.9 | 760.0 | 15.3 |
| Operating income (JPY bn) | 27.8 | 32.0 | 15.0 |
| Ordinary income (JPY bn) | 29.9 | 32.0 | 6.9 |
| Net income (JPY bn) | 31.1 | 29.0 | -6.7 |
Net sales (JPY bn): FY2026 actual: 658.9; FY2027 guidance: 760.0; Change (%): 15.3
Operating income (JPY bn): FY2026 actual: 27.8; FY2027 guidance: 32.0; Change (%): 15.0
Ordinary income (JPY bn): FY2026 actual: 29.9; FY2027 guidance: 32.0; Change (%): 6.9
Net income (JPY bn): FY2026 actual: 31.1; FY2027 guidance: 29.0; Change (%): -6.7
The guidance includes Shinko Shoji from Q2 (sales of JPY 100 bn, operating income of JPY 2.0 bn) and about JPY 6.0 bn of negative goodwill. Q1 FY2027 achieved 26–28% of the pre-Shinko full-year profit targets, with record first-quarter sales of JPY 170.5 bn. Consensus ordinary income of about JPY 34.1 bn is above the company's JPY 32.0 bn, which suggests the sell-side expects further upgrades.
Bull case
-
Organic momentum is real. Q1 FY2027 operating income rose 30.5% before any Shinko contribution, even though FY2026's spot memory sales did not recur. EMS (medical, air-conditioning) and Information Equipment are compounding.
-
Acquisitions at a discount build value. Kyoei Sangyo and Shinko Shoji were bought below book value, producing a combined JPY 13.6 bn or so of negative goodwill. Pro-forma sales of about JPY 760 bn put the JPY 800 bn FY2028 target within a year's reach. Synergies from overlapping logistics, cross-selling and Shinko's EMS moving to Kaga plants could lift the operating margin toward the 5.0% target.
-
Valuation is undemanding. A forward P/E of about 9x, about 1.4 times book, a recurring ROE in the mid-teens, a DOE floor of 4% and a JCR A rating leave room for a re-rating as recurring earnings rise past JPY 22 bn.
Bear case
-
Earnings quality. Bargain-purchase gains, securities gains and spot sales have repeatedly inflated reported profit. FY2026's JPY 31.1 bn included about JPY 10.9 bn of extraordinary gains. Once these are stripped out, operating income has grown only about 7.4% a year since FY2022, and the operating margin has fallen from 5.3% to 4.2%.
-
Cyclical exposure is rising. The memory upcycle that drove FY2026 could reverse in 2027. Higher leverage after the Shinko deal, plus working-capital swings like FY2026's negative operating cash flow, could pressure cash flow in a downturn.
-
Integration and succession load. Two acquisitions in 13 months, a founder leaving the executive role, and Shinko's lower-margin distribution business (about 2% operating margin on the guidance) could dilute group margins and stretch management.
Key catalysts and monitorables (next 12 months)
| Date / period | Catalyst | What to watch |
|---|---|---|
| 10 Nov 2026 | H1 FY2027 results | First Shinko Shoji contribution; size of negative goodwill; organic EMS growth; any guidance or dividend change |
| Nov 2026 – Q1 2027 | Completion of the Shinko Shoji squeeze-out and integration plan | Synergy targets, systems integration, franchise retention |
| Nov 2026 | English edition of Integrated Report 2026 | EMS strategy detail; progress on capital policy |
| Feb 2027 | Q3 FY2027 results | Memory price trends; automotive EMS demand; FX |
| May 2027 | FY2027 results and FY2028 guidance (final plan year) | Path to JPY 800 bn sales, JPY 36 bn operating income and a 5.0% margin; dividend policy; next buyback |
| Ongoing | Further M&A among Japanese distributors | Price discipline; financing |
| Ongoing | U.S. tariff policy and yen moves | Mexican EMS, U.S. amusement, translation effects |
| Ongoing | India automotive EMS ramp-up | Customer wins; capex |
10 Nov 2026: Catalyst: H1 FY2027 results; What to watch: First Shinko Shoji contribution; size of negative goodwill; organic EMS growth; any guidance or dividend change
Nov 2026 – Q1 2027: Catalyst: Completion of the Shinko Shoji squeeze-out and integration plan; What to watch: Synergy targets, systems integration, franchise retention
Nov 2026: Catalyst: English edition of Integrated Report 2026; What to watch: EMS strategy detail; progress on capital policy
Feb 2027: Catalyst: Q3 FY2027 results; What to watch: Memory price trends; automotive EMS demand; FX
May 2027: Catalyst: FY2027 results and FY2028 guidance (final plan year); What to watch: Path to JPY 800 bn sales, JPY 36 bn operating income and a 5.0% margin; dividend policy; next buyback
Ongoing: Catalyst: Further M&A among Japanese distributors; What to watch: Price discipline; financing
Ongoing: Catalyst: U.S. tariff policy and yen moves; What to watch: Mexican EMS, U.S. amusement, translation effects
Ongoing: Catalyst: India automotive EMS ramp-up; What to watch: Customer wins; capex
Analyst verdict
Kaga Electronics enters the second half of its Medium-Term Management Plan 2027 as the clear consolidator of Japan's fragmented electronic-component distribution industry. It is also one of the few domestic distributors with a credible manufacturing arm. Its record of buying distressed or orphaned distributors below book value (Fujitsu Electronics in 2019, Kyoei Sangyo in 2025, Shinko Shoji in 2026) and integrating them without balance-sheet strain is its defining strength. That record has taken pro-forma sales to about JPY 760 bn, close to the JPY 800 bn FY2028 target, and keeps the ¥1 trillion ambition plausible.
Investors should still separate reported earnings from recurring earnings. Bargain-purchase gains, securities sales and one-off memory spot sales have dominated the headline net income of the last two years. Recurring operating margin has drifted down from its FY2023 peak of 5.3% to 4.2% as wage and logistics costs rose faster than gross profit. Lifting the margin back to the plan's 5.0% target will require the higher-margin EMS business to grow faster than distribution and real cost synergies from Shinko Shoji. That is achievable, but it is not yet visible in the numbers.
Governance has improved steadily: an Audit & Supervisory Committee structure, a half-independent board, a DOE floor, the August 2025 buyback, and a smooth handover from the founder to President Kado, who has effectively run the company for more than a decade. The balance sheet, rated A by JCR, can absorb the Shinko Shoji borrowings. Working-capital volatility remains the key cash-flow risk in a memory downcycle.
On roughly 9 times forward earnings and about 1.4 times book, with a recurring ROE in the low-to-mid teens, the shares already price in much of the cyclical risk but little of the consolidation upside. The balance of evidence favours a constructive view. The next three earnings releases should confirm organic EMS growth, Shinko Shoji integration and operating-margin progress toward 5.0%. The main downside scenario is a sharp 2027 memory correction combined with yen strength, which would test both earnings and working capital at the same time.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Position | Born / age | Background |
|---|---|---|---|
Isao Tsukamoto | Founder & Honorary Chairman from 1 November 2026. Representative Director, Chairman & Executive Officer until 31 October 2026. | 1 Sep 1943 (83) | Founded Kaga Electronics as a sole proprietorship in February 1968 and incorporated it in September 1968. President from 1968, Chairman from April 2007. Outside director of SAAF Holdings (formerly ITbook Holdings). Held 1,447,000 shares (3.04%) at 31 March 2026. |
Ryoichi Kado | Representative Director, President & CEO | 1 Dec 1957 (68) | Joined Kaga Electronics in March 1980. Became general manager of Sales Department 3 in 1991 and rose through sales to the presidency in 2014. Has led day-to-day management, medium-term planning, capital policy and M&A. Sole representative director from 1 November 2026. |
Takeshi Tsukamoto | Director, Senior Executive Officer; Representative Director, President & CEO of Kaga FEI | — | Joined in April 1987. Vice General Manager, then President, of Kaga (H.K.) Electronics (2001–2010). General Manager of Overseas EMS Sales (2010). Managing Director of Kaga High-Tech (2012). Head of Corporate Planning (2015). Executive Officer (2016). Senior Executive Officer Managing Director of Fujitsu Electronics/Kaga FEI (2019). President of Kaga FEI (2023). Director since June 2025. |
Yasuhiro Ishihara | Director, Senior Executive Officer, General Manager of Administration (functions as CFO) | — | Executive Officer and Deputy GM of Administration. Senior Executive Officer and GM of Administration from April 2023. Director since June 2025. Contact officer for financial disclosure. |
Hitoshi Kojiya | Director, Senior Executive Officer, Head of Corporate Planning | 30 Nov 1969 (56) | Joined in April 1992. Led special sales departments (2012–2013). Head of Corporate Planning (2019). Executive Officer (2020). Also Head of Sales Planning (2024–2025). Director since June 2025. Leads M&A execution, including the Shinko Shoji tender offer filing. |
Susumu Miyoshi | Outside Director | 20 Sep 1940 (86) | Joined Toyota Motor in 1963. Director in 1994, Executive Vice President in 2001, then Senior Advisor. |
Noritomo Hashimoto | Outside Director | — | Re-elected at the June 2026 AGM. |
Mamoru Yoshida | Outside Director | — | Re-elected at the June 2026 AGM. |
Kyoko Oyanagi | Outside Director (Audit & Supervisory Committee member) | — | Licensed social insurance and labour consultant. Representative of Sakura Management Office since 2016. Chair of the Tokyo Labour Improvement Promotion Association (labour insurance administration) since 2020. Outside Audit & Supervisory Board member from 2023, then outside director and A&SC member from June 2025 (78.47% shareholder approval). The company has had an advisory contract with her firm since 2004 and judges it immaterial. |
“—” = not publicly disclosed.
Board & Management Changes
| Date | Change | Context |
|---|---|---|
16 Jun 2025 | Senior Executive Officer Takeo Okabe resigned | The company published its final report on an internet article alleging harassment the same day. |
26 Jun 2025 | Yasuhiro Ishihara, Hitoshi Kojiya and Takeshi Tsukamoto joined the board. Kyoko Oyanagi became an outside director and A&SC member. | Accompanied the move to a company with an Audit & Supervisory Committee. |
25 Jun 2026 | Eight non-A&SC directors elected: Isao Tsukamoto, Ryoichi Kado, Takeshi Tsukamoto, Yasuhiro Ishihara, Hitoshi Kojiya, and outside directors Susumu Miyoshi, Noritomo Hashimoto and Mamoru Yoshida | 58th AGM |
27 Oct 2026 (announced) | Isao Tsukamoto to resign as Representative Director and Chairman effective 31 October 2026, citing personal reasons | Completes a gradual handover. Kado becomes sole representative director. |
1 Nov 2026 | Isao Tsukamoto becomes Founder & Honorary Chairman | Advisory and culture-keeping role |
Major Shareholders
| Shareholder | Shares held (thousands) | % of shares outstanding excl. treasury |
|---|---|---|
The Master Trust Bank of Japan, Ltd. (trust account) | 5,608 | 11.77 |
OKOZE Co., Ltd. | 3,680 | 7.72 |
Kaga Electronics Employee Shareholding Association | 3,108 | 6.52 |
Custody Bank of Japan, Ltd. (trust account) | 2,949 | 6.19 |
Isao Tsukamoto | 1,447 | 3.04 |
Competitive Landscape
Key Competitors
| Competitor | Segment overlap | Relative positioning |
|---|---|---|
Macnica Holdings (TSE: 3132) | Semiconductor distribution | Japan's largest semiconductor distributor. Strong in U.S. and advanced semiconductors (AI-server GPUs and memory) and cybersecurity. About 1.8 times Kaga's sales. |
Restar (TSE: 3156) | Semiconductor and component distribution; EMS; procurement | Formed from the 2019 merger of UKC Holdings and Vitec Holdings; strong in image sensors and Sony-related lines. Exited its Shinko Shoji stake by tendering to Kaga. |
Ryoyo Ryosan Holdings (TSE: 167A) | Semiconductor and component distribution | Formed by the 2024 merger of Ryosan and Ryoyo Electro (Mitsubishi Electric heritage). Operating subsidiaries merged in April 2026. |
Tokyo Electron Device (TSE: 2760) | Semiconductor distribution; IT solutions | Tokyo Electron-affiliated; strong in analogue and FPGA lines and private-brand products |
Marubun (TSE: 7537) | Semiconductor and component distribution | Mid-sized independent distributor |
Tomen Devices (TSE: 2737) | Memory distribution (Samsung) | Concentrated memory distributor; direct competitor for spot memory sales |
Sanshin Electronics (TSE: 8150) | Component distribution | Mid-sized distributor |
Hakuto (TSE: 7433) | Electronic components and industrial equipment | Diversified technical trader |
Daiwabo Holdings (TSE: 3107) | IT and PC distribution | Largest Japanese IT distributor. Competes with Kaga's Information Equipment segment in PCs for education and corporates. |
Arrow Electronics, Avnet, WPG Holdings, WT Microelectronics | Global semiconductor distribution | Global broadliners with much larger scale. They compete for multinational OEM accounts in Asia, Europe and the Americas. |
SIIX, Sumitronics, Katolec | Japanese EMS | Japanese EMS providers with overlapping customers in automotive and industrial |
Jabil, Flex, Kimball Electronics | Global EMS | Larger global EMS firms. Kaga focuses on high-mix, lower-volume work where these firms are less dominant. |
Peer Comparison FY2026
| Metric | Kaga Electronics | Macnica Holdings | Restar | Ryoyo Ryosan HD |
|---|---|---|---|---|
Net sales (JPY Bn) | 658.9 | 1,214.2 | 630.9 | 359.9 |
Sales growth (%) | 20.3 | 17.4 | 12.5 | 0.0 |
Operating income (JPY Bn) | 27.8 | 42.0 | 16.7 | 10.1 |
Operating margin (%) | 4.2 | 3.5 | 2.7 | 2.8 |
Net income (JPY Bn) | 31.1 | 27.8 | 7.7 | 7.4 |
Operating income growth (%) | 17.9 | 5.8 | 18.1 | 18.6 |
