UACJ Corporation

5741.TMEDIUM

Battery Materials / Aluminum Cathode Current Collector Foil · Weight: 2%· Data as of 2026-06-04

Investment Thesis

Aluminum foil is the ONLY material for lithium-ion battery cathode current collectors — no substitutes exist. UACJ Foil (subsidiary) is the ONLY Japanese manufacturer producing both cathode AND anode foil for Li-ion batteries, with ±0.5 μm precision thickness control for automotive applications. As Honda (via LG Energy Solution) scales 2170-format cylindrical cell production for Vietnam e:Swap (50→1,000 stations by 2027) and Panasonic scales MPP cells for Honda's global Gachaco expansion, demand for precision battery aluminum foil grows proportionally to cell volumes. UACJ Foil's Japan-origin supply is strategically valuable to ex-China battery makers (LG, Panasonic, Samsung SDI) seeking supply chain diversification. PE 15.46x, PBR 1.73x, ROE 11.21% — reasonable valuation for a structural materials moat.

Risk

1) PEAK EARNINGS RISK: FY2026 NI +39% (¥38.8B) but FY2027 NI guided DOWN to ¥28B (-28%) — overall UACJ business is cyclical (aluminum auto body panels, packaging). Core battery foil growing but cannot offset broader aluminum cycle headwinds. 2) Chinese/Korean competitors: Longchuang (China), POSCO (Korea) also produce battery aluminum foil — UACJ's Japan premium may not hold if quality gap narrows. 3) Revenue ¥1.18T is mostly non-battery aluminum products (auto panels, packaging, construction) — battery foil may be <15% of total. 4) LFP batteries use slightly different aluminum foil specifications vs NMC — Honda's UC3 LFP switch may require spec validation.

Monitoring Trigger

Add on dip if: UACJ Foil announces new battery customer contract or capacity expansion. Trim if: FY2027 NI decline confirmed >30% (aluminum cycle peak confirmed). Exit if: Chinese aluminum foil makers win Honda MPP cell supplier qualification (quality gap eliminated).

Key Dates

2026-08earningsUACJ Q1 FY2027 results — verify if FY2027 NI decline is realized or if battery foil segment compensates broader aluminum weakness

2027-H1monitoringWatch aluminum spot price and UACJ FY2027 OP trajectory — if decline >30%, trim position

2027-Q1catalystHonda-LG Vietnam 1,000 swap stations ramp — LG 2170 cell production acceleration drives aluminum foil demand

Update History

2026-06-04exploreNEW

View report →

New stock — Honda e-motorcycle cycle_rotation signal (TS_20260503, score 4), round 4. Supply chain gap: battery cathode current collector foil layer. UACJ Foil = Japan's only maker of BOTH battery foil types (cathode+anode). 'No substitutes' for aluminum cathode foil. PE 15.46x, PBR 1.73x, ROE 11.21%. Peak earnings risk flagged (FY2027 NI guided -28%).

Key Metrics

15.46x

~22x (FY2027 NI guided ¥28B from ¥38.8B; NI decline; caution)

Fwd PE

1.73

P/B

11.21%

ROE

~5.4% (Q3 FY2026 9M operating profit margin improving from prior year)

Op Margin

N/A

D/E

1.75%

Div Yield

N/A (capital-intensive aluminum rolling; verify before entry)

FCF

~¥130-160B est.

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
UACJ Foil (Battery Foil)	est. ¥120-200B	est. 10-17%	Aluminum and copper foil for Li-ion battery cathode and anode current collectors. Precision ±0.5 μm. Automotive grade. Only Japanese maker of BOTH foil types. Customers include Japanese and Korean battery cell makers.
Flat Rolled Products (Auto/Industrial)	est. ¥800-900B	~75%	Aluminum sheet for automotive body panels (EV and ICE), construction, industrial use. Cyclical, correlated with automotive production volumes.
Packaging / Other	est. ¥100-200B	~10-15%	Aluminum foil for food packaging, pharmaceutical packaging. Stable demand.

Supply Chain Evidence

Evidence	Customer	Product	Detail
probable	Panasonic Energy (Honda MPP cells)	Aluminum cathode current collector foil for cylindrical Li-ion cells	Panasonic Energy manufactures Honda MPP batteries (confirmed Honda relationship) using cylindrical Li-ion cells. All Li-ion cathodes require aluminum current collector foil. UACJ Foil, as Japan's premier battery aluminum foil maker (only dual cathode+anode maker), is the natural Japan-origin supplier for Panasonic Energy's Honda MPP cell production.[source](2026-06)
probable	LG Energy Solution (Honda Vietnam e:Swap cells)	Aluminum cathode current collector foil for 2170 cylindrical NMC cells	LG Energy Solution supplies 2170 cylindrical NMC cells for Honda-LG Vietnam e:Swap network (50 stations Q3 2026, 1,000 by 2027). LG Energy Solution has diversified its current collector foil supply chain; UACJ Foil supplies Japan-origin aluminum foil to Korean battery makers seeking supply chain resilience.[source](2026-05)
inferred	Honda Motor (UC3 LFP battery)	Aluminum foil for LFP cathode current collector	Honda UC3 uses Honda's first fixed LFP battery (3.17 kWh). LFP cathodes require aluminum current collector foil (no substitute). UACJ Foil's automotive-grade specialty foil is the most likely Japan-origin supply source for Honda's LFP battery pack assembly.[source](2026-06)

Sources & References

↗UACJ Foil Battery Productshttps://ufo.uacj-group.com/en/products/battery/↗UACJ Aluminum for Li-ion Batterieshttps://uacj-automobile.com/point_of_view/point_of_view09.html ↗Honda-LG Vietnam Partnershiphttps://electrek.co/2026/05/18/honda-and-lg-team-up-to-accelerate-battery-swapping-electric-motorcycles/

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Murata Manufacturing	~49.7x TTM (impairment-distorted; fwd PE ~37x on FY2026 guidance)	~37x (on FY2026 OP +34.8% guidance)	7.25%	15.4%	+¥239B
TDK Corp	26.51	23.71	11.4%	12.4%	+¥169B
Fuji Electric	20.59	17.97	8.2%	8.7%	+¥51B
Sumitomo Metal Mining	28.63	19.76	5.0%	5.0%	+¥87B
AGC Inc	17.89	14.7	4.7%	6.2%	+¥65B
Kureha Corp	N/A	19	-6.7%	-11.1%	~est. negative (capex ongoing)
Asahi Kasei	13.4	12.9	7.7%	7.5%	+¥134B
Mitsubishi Electric	32.85	30.6	10.1%	9.1%	+¥317B
Nidec Corp			6.3%	5.0%	+¥174B
Hirose Electric	23.3	23.5	9.0%	20.3%	~+¥36B
Sumitomo Electric	25.5	29.7	10.2%	8.2%	+¥102B (est.)
Resonac Holdings	83.53	~31.6x	5.72%	4.3%	+¥24B
Rohm Co.	Loss (NI -¥158.4B SiC impairment)	~125x (near-breakeven NI; FY2028 target >20% OP margin)	Loss	+1.6% Q3 FY2026 (recovering from -9.0% year ago)	-¥44B
Shindengen Electric Manufacturing Co., Ltd.	30.8	N/A	N/A	N/A	N/A
GS Yuasa Corporation	11.04	N/A	9.59%	N/A	N/A
Mitsuba Corporation	5.5	N/A	N/A	N/A	N/A
Daido Steel Co., Ltd.	~11x	N/A	N/A	N/A	+est.
Nippon Seiki Co., Ltd.	12.45	12.05	N/A	N/A	+confirmed
Musashi Seimitsu Industry Co., Ltd.	31.6	N/A	N/A	11.1%	N/A
Stanley Electric Co., Ltd.	13.8		4.5%	6.3%	N/A
Honda Motor Co., Ltd.	7.77		5.82%	7.0%	N/A
Mitsui High-tec, Inc.	15.3	13	11.8%	5.8%	-¥12B
MinebeaMitsumi Inc.	18.7	13.75	9.1%	6.2%	-¥21B
Ryobi Limited	~8x	N/A	4.4%	3.2%	N/A
Tokai Rika Co., Ltd.	~8x	N/A	10.9%	5.9%	+est. ¥15-20B
Nippon Chemi-Con Corporation	91	7	3.1%	2.9%	~0 (thin; ¥20B capex planned)
Japan Aviation Electronics Industry, Ltd.	13.7		5.1%	7.1%	thin (¥63B capex over 3yr)
ARCHION Corporation	11	11	~6%	~2.0%	Negative on integration capex through FY2027
Alps Alpine Co., Ltd.	18.3	N/A	N/A	2.4%	N/A
Nichicon Corporation	16.74	N/A	N/A	3.8%	N/A
Mikuni Corporation	4.2	N/A	N/A — confirm vs J-Quants	N/A — thin, est. 1-3%	N/A
T.RAD Co., Ltd.	N/A — confirm vs StockAnalysis	N/A	N/A — confirm vs J-Quants	N/A	N/A
Renesas Electronics Corporation	N/A (EPS negative — IDT amortization ¥370B/yr; operating profit positive)	N/A	~10.5% (pre-impairment FY2025; currently impaired by amortization)	N/A — confirm vs J-Quants	N/A
Shin-Etsu Chemical Co., Ltd.	24.79x TTM	22.32x (pre-PVC recovery)	~10.5-11.5%	~24.7% (FY2026; compressed -14.4% from PVC weakness)	+¥739.4B (FY2025 — outstanding)
Sumitomo Bakelite Co., Ltd.	~17.2x TTM	~12.0x (FY2025 guidance ¥25.5B NI)	6.54%	10.3% (FY2025 guidance)	+¥46B est (EV/FCF 8.73x, EV ~¥400B)
NSK Ltd	32.12	22.70	1.8%	2.96%	+¥44B (est.)
Toray Industries Inc	25.97	16.62	3.19%	5.0%	N/A
SMC Corporation	29.0	27.24	7.9%	N/A	+¥200B (est., high net income + minimal capex)
Mitsui Kinzoku Company, Limited	~29.7x TTM / ~22.3x forward (StockAnalysis/Simply Wall St, May 2026)	~22.3x	~18.4%	~15.6% (implied: OP ¥117B / revenue ¥750B FY2025E)	N/A (verify J-Quants; positive expected given OP margins)
UBE Corporation	~8.4x TTM (cheaply valued)	N/A	~5.1% (WARNING: below TSE 8% target — ROE guardrail triggered. Override: capex-heavy transition period; electrolyte growth pipeline.)	~4.7% (thin — monitor for recovery to 7%+)	N/A (capex-heavy with Louisiana plant — verify against J-Quants when available)
Taiyo Yuden Co., Ltd.	20.79x TTM (StockAnalysis, May 2026)	27.52x (FY2026 guidance: +8% revenue, +50% OP income)	3.92%	~3.3% TTM (trough); guided to ~4.8–5% FY2026 on +50% OP recovery	N/A
F.C.C. Co., Ltd.	9.5x	N/A	N/A	N/A	N/A
Nittoku Co., Ltd.	14.12x	15.45x	N/A	N/A	N/A
NOK Corporation	15.5x	N/A	~3-5%	4.9%	N/A
Yokowo Co., Ltd.	N/A	N/A	N/A	5.1%	N/A
Yamaha Motor Co., Ltd.	7.5	N/A	1.4%	5.0%	+¥52.5B
Hioki E.E. Corporation	27.8x	N/A	N/A	N/A	N/A
Tsubakimoto Chain Co.	~11.2x	N/A	8.75%	~8.1%	est. +¥20-25B
Central Glass Co., Ltd.	17.7x	~14x (26% EPS growth forecast; analyst consensus)	~8.2% (est: NI ¥8.36B / book value ¥101B)	~3.2% (compressed; was ~6-9% pre-Chinese LiPF6 price war)	N/A (J-Quants not available; cross-validate before entry)
CKD Corporation	~36x	~20x (analyst forecast; likely conservative given 35.7% recent earnings growth)	9.19%	12.4%	N/A
Panasonic Holdings Corporation	32.4x	~15x (FY2027 NI expected +2.2x from ¥75B base)	4.77% (FY2026 trough; guided higher FY2027)	~2.9% (FY2026: OP ¥236.4B / Revenue ¥8,049B; compressed by restructuring charges)	N/A (Panasonic Energy capex-heavy; cross-validate before entry)
UACJ Corporation	15.46x	~22x (FY2027 NI guided ¥28B from ¥38.8B; NI decline; caution)	11.21%	~5.4% (Q3 FY2026 9M operating profit margin improving from prior year)	N/A (capital-intensive aluminum rolling; verify before entry)
Kanto Denka Kogyo Co., Ltd.	N/A (loss year FY2026 due to fire). Forward PE ~32x on FY2027 guided EPS ¥118.3	~32x (FY2027 guided NI ¥6.8B / shares 57.46M = ¥118.3 EPS; price ¥3,775)	-4.74% (FY2026 fire loss). FY2027 guided ROE ~10% (¥6.8B NI / ¥68B book)	~8.7% guided FY2027 (¥10B OP / ¥95B revenue). Depressed in FY2026 (fire losses)	Negative FY2026 (fire year). Recovery expected FY2027.