Endo Manufacturing

Basic Information

Stock Code
7841
Industry
Other Products
Category Detail
Auto Parts
Prefecture
Niigata Prefecture
Establishment Year
November 1950
Listing Year
March 2003
Official Website
http://endo-mfg.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Alpha, Metal Art, H-One, Kitagawa Tekkosho, Misakura Kogyo, Global S, Koken, Fushiki Unyu

Overview

Endo Manufacturing is a major company in the metal processing industry founded in 1950, boasting high-level forging technology deployed domestically and internationally, and top-class technical capabilities in golf club heads.

Current Situation

Endo Manufacturing recorded consolidated sales of approximately 14.6 billion yen and operating profit of approximately 1.8 billion yen for the fiscal year ended December 2022, maintaining solid performance. In its core golf club business, it possesses advanced titanium processing technology and supplies club heads on an OEM basis to major golf manufacturers domestically and overseas. It also conducts stainless steel products business and automotive parts forging business, establishing a diversified business structure. It operates three subsidiaries and four factories in the Kingdom of Thailand, expanding production bases overseas and constructing a global supply chain. In technological innovation, it is expanding proprietary technologies such as Azroll Titanium and Indibeater-type titanium, focusing on manufacturing cost reduction and quality improvement. It promotes production processes that reduce environmental impact and aims for sustainable business operations. In 2023, it strengthened its business foundation by making Nichia Forging a subsidiary, and for 2024, it upwardly revised net profit by 64% increase, sustaining growth momentum. Moving forward, it will advance development of high-function metal products and overseas market expansion, implementing a sustainable growth strategy toward 2030.

Trivia

Interesting Facts

  • Established in 1950, a veteran forging technology company
  • Domestic top-class manufacturing technology for golf club heads
  • Owns multiple subsidiaries and factories in Thailand
  • Developed proprietary Azroll Titanium technology
  • Strengthened business base by making Nichia Forging a subsidiary
  • Headquartered in Tsubame City, Niigata, collaborating with local industries
  • Succeeded in manufacturing cost reduction, contributing to profit growth
  • Achieved risk diversification through product diversification
  • Expanding into aviation and medical fields with high-precision forging technology
  • Improved customer satisfaction through rigorous quality control
  • Consolidated employees number 1,282, stable scale
  • Goldman Sachs listed as a major shareholder
  • Transitioned from JASDAQ Standard to Tokyo Stock Exchange Standard
  • Metal processing technology highly evaluated in other industries as well
  • Also produces stainless steel kitchen utensils

Hidden Connections

  • Supplies OEM to major golf industry brands, indirectly linked to numerous top brands.
  • Deeply connected to the metal processing industry cluster in Tsubame City, Niigata Prefecture.
  • Contributes to forming manufacturing networks of Japanese companies in Thailand, where it has overseas subsidiaries.
  • Expected integration effects of manufacturing bases with peer companies through Nichia Forging subsidiary acquisition.
  • Major shareholder Goldman Sachs provides funding via overseas investments.
  • Transition from JASDAQ listing to Tokyo Stock Exchange has expanded investor base.
  • Transactions with a wide range of domestic and overseas automakers as suppliers of automotive parts.
  • Secures advanced talent through engineer training and collaboration with local universities.

Future Outlook

Growth Drivers

  • Market expansion of advanced titanium forging technology
  • Improved cost competitiveness through strengthened overseas production
  • Golf market growth and rising overseas demand
  • Increasing demand for high-quality parts from automotive industry
  • Promotion of product development compliant with environmental regulations
  • High-value addition of special metal products
  • Production efficiency improvement through digitalization and automation
  • Further strengthened collaboration with local industry cluster
  • Advancement of sustainability management initiatives
  • Synergy effects from diversified businesses
  • New market acquisition through new product development
  • Technological innovation through increased R&D investment

Strategic Goals

  • Top 3 market share domestically and overseas
  • 50% reduction in CO2 emissions
  • Sales exceed 20 billion yen
  • Operation optimization through subsidiary group collaboration
  • Strengthened global production network
  • Revenue diversification through new businesses
  • Cultivation and securing of advanced engineers
  • Expansion of environmentally friendly product lineup
  • Building sustainable resource procurement system
  • Company-wide operational efficiency through digitalization

Business Segments

Golf Products OEM

Overview
Handles OEM production of high-performance golf club heads for manufacturers domestically and overseas.
Competitiveness
High-quality product lineup based on high-precision titanium forging technology
Customers
  • Domestic golf manufacturers
  • Overseas golf manufacturers
  • Sports goods retailers
Products
  • Titanium forged club heads
  • Custom parts
  • Golf accessory products

Automotive Parts Manufacturing

Overview
Supplies automotive metal parts with high-precision processing, providing reliability and durability.
Competitiveness
Long years of forging technology and rigorous quality control system
Customers
  • Automotive parts manufacturers
  • Automotive manufacturers
  • Secondary parts processors
Products
  • Metal hinges
  • Brackets
  • Forged parts

Stainless Steel Products Supply

Overview
Manufactures and supplies highly durable stainless steel products for commercial and home use.
Competitiveness
Product lineup with high durability and environmental consideration
Customers
  • Commercial kitchen utensil manufacturers
  • Home kitchen utensil retailers
  • Metal processing companies
Products
  • Commercial kitchen equipment parts
  • Home stainless steel kitchen utensils
  • Eco-friendly products

Overseas Production Base Operations

Overview
Deploys a global production system utilizing subsidiaries and factories in Thailand.
Competitiveness
Local production efficiency and logistics
Customers
  • Inter-subsidiary collaboration
  • Local industries
  • Logistics services
Products
  • Forged product manufacturing
  • Locally procured parts
  • Production operations

Special Metal Precision Processing

Overview
Supplies difficult-to-process special metal parts with high-precision machining.
Competitiveness
Advanced technology and quality assurance system
Customers
  • Aircraft parts manufacturers
  • Medical device manufacturers
  • High-function parts trading companies
Products
  • Titanium parts for aircraft
  • Precision parts for medical use
  • High-value-added special alloy products

Industrial Machinery Parts Manufacturing

Overview
Stably supplies metal machinery parts for multiple industries.
Competitiveness
Parts manufacturing adaptable to diverse industry needs
Customers
  • Industrial machinery manufacturers
  • Construction machinery manufacturers
  • Equipment machinery companies
Products
  • Industrial hinges
  • Brackets
  • Fixtures

Furniture and Construction Metal Parts Supply

Overview
Manufactures and sells high-quality metal parts for furniture and construction.
Competitiveness
Broad product lineup and stable supply
Customers
  • Furniture manufacturers
  • Construction material manufacturers
  • Contractors
Products
  • Furniture hinges
  • Construction fixtures
  • Metal brackets

Health and Sports Equipment Parts

Overview
Provides diverse metal parts for health and sports equipment.
Competitiveness
Balancing reliability and high durability
Customers
  • Sports goods manufacturers
  • Medical device manufacturers
  • Health equipment sales companies
Products
  • Sports glove metal parts
  • Massage device frames
  • Fitness equipment parts

Industrial Precision Metal Processing

Overview
Conducts precision processing for electronics and optics fields.
Competitiveness
High-precision and diverse parts manufacturing technology
Customers
  • Electronic device manufacturers
  • Optical device manufacturers
  • Precision machinery manufacturers
Products
  • Stainless parts for electronics
  • Metal parts for optical devices
  • Precision processed parts

Gardening Metal Parts Supply

Overview
Provides metal fixtures for gardening and agriculture.
Competitiveness
Versatile and highly durable products
Customers
  • Gardening manufacturers
  • Agricultural material retailers
  • Home centers
Products
  • Gardening clamps
  • Support pole fasteners
  • Various fixtures

Competitive Advantage

Strengths

  • Advanced titanium forging technology
  • Diversified business expansion and product lineup
  • Stable customer base domestically and overseas
  • Production efficiency from overseas bases
  • Rigorous quality management system
  • Accumulated long-term manufacturing know-how
  • Strong local roots in Niigata Prefecture
  • Promotion of sustainable production processes
  • Diverse product lineup for multiple industries
  • Solid financial base and capital strength
  • High user trust
  • Flexible OEM responsiveness
  • Enhanced R&D capabilities
  • Synergy effects from consolidated subsidiaries
  • Securing excellent engineers

Competitive Advantages

  • Possesses domestic top-class titanium forging technology
  • Capable of integrated manufacturing of diverse metal products
  • Global production system leveraging Thai subsidiaries
  • Gains customer trust through high-quality OEM supply
  • Strengthens competitiveness via manufacturing cost reduction
  • Corresponds to special parts market through high-precision processing
  • Builds stable procurement system in collaboration with local areas
  • Customer base from long-term transaction track record
  • Improved production efficiency through latest equipment introduction
  • Actively promotes environmental impact reduction
  • Reduces defect rate with consistent quality management
  • Achieves product differentiation through polishing and finishing technology
  • Rapid product development tailored to customer needs
  • Risk diversification across broad business areas
  • Business expansion through capital alliances and subsidiaries

Threats

  • Risk of fluctuations in metal material prices
  • Technological innovations by domestic and overseas competitors
  • Strengthened import/export regulations due to international situations
  • Impact of exchange rate fluctuations on earnings
  • Intensified competition from increasing new entrants
  • Cost increases from strengthened environmental regulations
  • Risk of market shrinkage for major customers
  • Risk of disruption in global supply chains
  • Labor shortages due to domestic workforce shortage
  • Decline in competitiveness from delays in technology succession
  • Instability in raw material procurement
  • Shortening product life cycles

Innovations

2023: Making Nichia Forging a Subsidiary

Overview
Implemented subsidiary acquisition to strengthen production base and expand product lineup.
Impact
Achieved enhanced manufacturing capacity and expanded market share.

2022: Development of New Indibeater-Type Titanium Club Head

Overview
Adopted new technology to improve rebound performance and durability.
Impact
Significantly improved market competitiveness and contributed to sales growth.

2021: Introduction of Automated Manufacturing Process Equipment

Overview
Introduced processing automation equipment to improve production efficiency and quality.
Impact
Achieved manufacturing cost reduction and shortened delivery times.

2024: Verification of Environmentally Friendly Forging Technology

Overview
Developed new casting technology aimed at reducing environmental impact, currently in practical testing.
Impact
Expected to reduce CO2 emissions and improve energy efficiency.

Sustainability

  • Introduction of energy-saving technology in production processes
  • Active promotion of recycled material utilization
  • Implementation of waste reduction programs
  • Support for participation in local environmental conservation activities
  • Improvement of work environment and thorough safety and health management
  • Promotion of environmentally low-impact product development
  • Implementation of environmental education programs for employees
  • Compliance with environmental standards in supply chain
  • Expansion of renewable energy utilization
  • Formulation of sustainable resource procurement policy
  • Setting medium- to long-term CO2 emission reduction targets
  • Strengthened monitoring of environmental impact in manufacturing processes