Recent Share Price: ¥428

Accounting: Japanese Accounting Standards

Fiscal Year: Mar. 31st

Market Cap: ¥4.3 billion ($40 million)

Industry: Basic Materials / Electrical Equipment & Components

Established in 1963, Sanko Co., Ltd. manufactures precision components primarily for the automotive industry. The Company operates under five divisions.

As of March 31, the Company had two subsidiarys, a 100% owned production facility in Thailand (Thai Sanko Co, Ltd.) and Sanko Trading USA.

Segment Revenue (JPY, in millions)	FY2109	y/y growth
Automotive Products (e.g., auto electronics)	¥9,565	12.8%
Housing Equipment (e.g., electric power meters)	¥23	13.6%
Digital Consumers (e.g., digital cameras)	¥1,603	14.8%
Office Equipment (e.g., printers)	¥290	9.3%
Other	¥603	7.8%

The company pointed out Brexit uncertainties, the Chinese economy and Sino-US relations as headwinds, but still expects solid growth from their automotive division. The company believes it is well positioned for the growth in demand for auto electronics with an emphasis on EV and hybird vehicles in their annual report.

Major Customers (JPY, in millions)	2018	2019	%
DENSO	¥1,493	¥1,800	13%
Osakidenkikogyo Co., Ltd.	¥2,146	¥1,771	13%

The Tamura family have a controlling interest in the company.

Major Shareholders	Shares	%
Tamura Shoji Co., Ltd. (Tamura Family)	3,045,000	33.75%
Masanori Tamura – Chairman	2,000,000	22.17%

The company has over ¥1 billion in LT Investments, but much of the value is in unlisted companies and information on this is difficult to come by via google translate.

Public Holdings	Shares	JPY (in millions)
Hachijuni Bank Co., Ltd.	437,650	¥200
Mizuho Financial Group	183,238	¥31
Japan Institute of Metals Co., Ltd.	1,000	¥1
Osakidenkikogyo Co., Ltd.	15,782	¥10

Financials

Disclosure: We own shares in Sanko Co Ltd (6964:TYO). Leaven Partners, LP may hold any securities mentioned on this blog and may buy or sell these securities at any time.