Ryobi Limited

5851.TMEDIUM

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

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

Update History

2026-05-13exploreNEW

View report →

Added via Honda e-motorcycle supply chain Explore round (TS signal score 4). Die casting for EV powertrain housings — Honda quality award winner, Thailand ASEAN footprint.

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.[source](2022-10)
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.[source](2025-03)
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.[source](2025-06)

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

IR landingRyobi Limited IR landing (English)↗

Cites: Primary IR portal

https://www.ryobi-group.co.jp/en/ir/

IR libraryRyobi Financial Statements library (English)↗

Cites: Earnings PDF archive back to 2009

https://www.ryobi-group.co.jp/en/ir/statements.html

Earnings releaseRyobi Q1 FY2026 Consolidated Financial Summary↗

Cites: Most recent quarterly tanshin

https://www.ryobi-group.co.jp/en/ir/data/cer2603.pdf

Earnings releaseRyobi FY2025 Full-Year Consolidated Financial Summary↗

Cites: FY2025 full-year results

https://www.ryobi-group.co.jp/en/ir/data/cer2512.pdf

Integrated reportRyobi Integrated Reports (English)↗

Cites: Integrated report archive — supplier of Honda die-cast aluminium parts

https://www.ryobi-group.co.jp/en/ir/annual_report.html

Sources & References

↗Honda supplier quality award (Modern Casting)https://www.moderncasting.com/articles/2020/10/05/ryobi-die-casting-inc-awarded-honda ↗Ryobi EV die casting product pagehttps://www.ryobi-group.co.jp/en/diecasting/electric_vehicles/↗Ryobi gigacasting investment (Nikkei Asia)https://asia.nikkei.com/business/automobiles/japan-s-auto-parts-maker-ryobi-to-gigacast-ev-body-components ↗Astris Advisory research report June 2025https://www.astrisadvisory.com/hubfs/Corporate%20Advisory/Corporate%20Research%20Reports/RYOBI%2001062025%20(ENG).pdf

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.
Niterra Co., Ltd.	15.42	14.67	14.80%	~19% (FY2027 guide: ¥150B OP / ¥790B rev)	+¥80B est.
Nippon Sanso Holdings Corporation	~18.6x est.	N/A	~10% est.	~15-16% (Q4 FY2026: ¥56.8B / ¥361.8B)	+¥90B est.