Investing in Japan: KOA announced financial results for 2019

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KOA's growth possibilities in EV market as the world’s leading manufacturer of resisters

KOA is an electronic parts manufacturer headquartered in Nagano Prefecture. More than 80% of its sales are made up of resistors, which are indispensable for electronic circuits. 

 KOA has the world's leading share in the production of resistors and its products are mainly used in automobile related. Previously, it manufactured products for audio equipment and personal computers, but in recent years it has taken a strategy to strengthen the production of automobile-related products. Nowadays, about 40% of the company's sales are related to automobiles. 

 Demand for KOA’s resistors for automobiles will further increase as electric vehicles and autonomous driving prevail. Although the company currently faces harsh business environment due to the global car sales stagnation against the backdrop of the spread of new coronavirus infection and the US-China trade friction, KOA will regain its growth momentum when car sales recovers in the world market. KOA’s solid financial base is also its strong point enabling the company to invest for future expansion.

KOA, the world’s leading manufacturer of resisters announced financial results for 2019

COVID-19 and US-China trade war affected


Regarding the latest results, on April 21, KOA announced its financial results for the fiscal year ending March 2020 that sales were down 11% to 50 billion yen, and operating profit was down 74% to 1.4 billion yen. 
KOA, the world’s leading manufacturer of resisters announced financial results for 2019

 Sales of resistors used in automobiles fell in China, which is the main market for KOA’s business. China’s economy slowed down caused by the US-China trade friction leading to sluggish automobile sales and manufacturers to which KOA provides its products adjusted their inventories. 
KOA, the world’s leading manufacturer of resisters announced financial results for 2019

 In the announcement of April 21, KOA could not disclose financial and dividend forecast for the fiscal year ending March 2021 because of difficulties to reasonably calculate the impact of the new coronavirus at this stage.

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