Ryobi Limited

5851.TMEDIUMScore: 33.5

Aluminum Die Casting / EV Powertrain Housings · Weight: 3%· Data as of 2026-05-13

Also in:EV

Investment Thesis

Japan's #2 aluminum die caster and confirmed Honda supplier (Honda 'Excellence in Delivery and Quality' award 2022). EV product lineup explicitly includes battery cases, motor covers, gear covers, inverter cases, converter cases — components needed as Honda scales UC3/Activa e: powertrain production. New gigacasting facility opened March 2025 (¥5.2B, Kikugawa Plant, 6,500-ton press) for large EV body structural parts. Thailand subsidiary (Rayong) is geographically embedded in Honda ASEAN supply chain, matching Honda Vietnam/Thailand e-motorcycle production hub. Die-casting segment = 88.5% of revenue. Medium-term plan 'Challenge 2027' targets 43% strategic (EV-related) product revenue by FY2027 (up from 17.4% in FY2023). PE ~8x, dividend yield 4%, market cap ¥79B.

Risk

Operating margin thin at 3.2% and ROE 4.4% (below cost of capital) — structurally weak profitability. Honda's explicit 'local production for local consumption' strategy for Vietnam/India means motorcycle housings may be sourced from local Vietnamese/Indian die casters at lower cost. Honda quality award was for Ryobi Die Casting USA (passenger car parts in North America), NOT motorcycle parts — the e-motorcycle supply relationship is probable but not confirmed. NI declined 31% in FY2024 from transition costs and yen/commodity pressures. Gigacasting investment targets passenger-car EV body panels, not motorcycle-scale parts (which use conventional die casting on existing lines).

Monitoring Trigger

If Honda Vietnam announces local e-motorcycle production ramp and Ryobi Thailand wins supply orders, add. If Ryobi FY2025 results show EV strategic products >25% of revenue (mid-plan milestone), add. If operating margin recovers to >5%, upgrade to MEDIUM-HIGH. If Honda sources Vietnam motorcycle housings locally with non-Japanese supplier, reduce/exit.

Key Dates

2026-05earningsRyobi FY2025 full-year results — check EV strategic product revenue % and operating margin recovery

2026-Q3monitoringHonda Vietnam local e-motorcycle production ramp — check if Ryobi Thailand captures supply orders

2027-03catalystFY2027 target year — Ryobi aims for 43% strategic (EV) product revenue

Key Metrics

~8x

N/A

Fwd PE

N/A (implied <1x, ROE 4.4%)

P/B

4.4%

ROE

3.2%

Op Margin

N/A

D/E

4.0%

Div Yield

N/A

FCF

¥79B

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Die Castings	~¥259B (88.5% of total)	~88.5%	Automotive aluminum die castings: cylinder blocks, subframes, chassis parts, battery trays, motor housings. Customers: Honda, Toyota, Ford, GM. EV transition target: 43% strategic products by FY2027.
Housing Equipment + Printing	~¥34B (11.5% of total)	~11.5%	Door closers (75% Japan market share), printing equipment. Mature/declining segment.

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Honda Motor Co., Ltd.	Aluminum die-cast automotive and EV powertrain components (battery cases, motor covers, inverter housings)	Honda presented Ryobi Die Casting USA, Inc. with 'Excellence in Delivery and Quality' award at 2022 Honda Supplier Conference (Columbus, Ohio). Multi-decade Honda supplier for cylinder blocks, transmission cases, structural parts.
probable	Toyota Motor Corp.	Aluminum die-cast structural and EV body components (gigacasting from March 2025)	Toyota is confirmed Ryobi customer. Ryobi's new gigacasting facility (6,500-ton, Kikugawa Plant, opened March 2025) targets domestic Japanese OEM orders — Toyota is primary target given scale. Nikkei Asia covered the gigacasting investment.
confirmed	Honda/Toyota/Ford/GM (EV supply chain)	EV-specific die castings: battery cases, gear covers, inverter cases, converter cases	Ryobi's EV applications product page explicitly lists these EV powertrain components for sale to automotive OEMs. Thailand subsidiary (Rayong) positions Ryobi in Honda ASEAN e-motorcycle supply chain geography.