Asahi Diamond Industrial Co., Ltd.
6140・Prime Market・Machinery
Business
Asahi Diamond Industrial Co., Ltd., founded in 1937, is a manufacturer specializing in diamond tools, operating the manufacture and sale of diamond tools including CBN Tools & Grinding Wheels under a single segment. Its major customers span a wide range of industries: Electronics & Semiconductors (approximately 40% of net sales), Machinery (approximately 25%), Transportation Equipment (approximately 23%), and Stone & Construction (approximately 9%). Domestically, the company has manufacturing bases including the Chiba Plant and Mie Plant, and overseas it has built a global network with manufacturing/sales subsidiaries and sales subsidiaries deployed across Asia/Oceania, Europe, North America, and Latin America. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A vertically integrated model that handles everything from in-house manufacturing to direct sales through domestic and overseas subsidiaries and affiliates. The company's strength lies in its ability to handle a wide variety of products and custom specifications tailored to customer processing needs, and it seeks to differentiate its products through technology development, investing ¥2,568 million in R&D expenses (FY2026 (ending March 2026)). It maintains a financial base capable of funding nearly all capital expenditures and working capital from its own funds, with stable cash generation capability serving as the source of its earnings.
Company Strengths
The company has continued to operate exclusively in diamond tools for 87 years since its founding in 1937. It supplies products to four major industries—Electronics & Semiconductors, Transportation Equipment, Machinery, and Stone & Construction—establishing a multi-industry framework that diversifies the risk of demand fluctuations in any single industry. Net sales of ¥41,983 million in FY2026 (ending March 2026) are supported by this broad customer base.
In addition to domestic manufacturing sites, the company has overseas manufacturing and sales subsidiaries in France, Taiwan, China, Indonesia, and Thailand, as well as sales subsidiaries in the United States, Mexico, Germany, Sweden, Australia, Malaysia, India, and Vietnam. In 2023, it added subsidiaries in Vietnam and India, strengthening its expansion into emerging Asian markets.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 78.5% and net assets at ¥64,133 million, indicating high financial soundness. Capital expenditures of ¥2,726 million and R&D expenses of ¥2,568 million were entirely funded from internal resources, supported by stable operating cash flow generation of ¥5,412 million underpinning the financial base.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥37,161 million in FY2022 to ¥39,320 million in FY2023, then temporarily declined to ¥38,653 million in FY2024, before recovering to ¥41,006 million in FY2025 and ¥41,983 million in FY2026. Operating profit peaked at ¥2,811 million in FY2022 and fell to ¥1,526 million in FY2024, but has since shown an improving trend, reaching ¥2,311 million in FY2025 and ¥2,403 million in FY2026. As external factors, expanding demand for AI and advanced semiconductors, a recovery in memory production, and a recovery in aircraft demand boosted performance, while slowing EV sales, declining automobile production, and stagnation in the Chinese economy acted as headwinds. In FY2026, the recording of an impairment loss of ¥1,920 million caused net income to decline 19.4% year on year to ¥2,009 million.
Growth Strategy
Aiming for global niche top status under the 'Mid-Term Management Plan 2030' centered on the electronics and semiconductor field
Positioning the electronics and semiconductor industry as the top priority growth field, the company is driving sales expansion of tools for processing advanced semiconductors for AI applications, memory-related tools, and ceramics tools for semiconductor manufacturing equipment. It aims to create new orders and expand market share through industry-specific sales strategies.
The company is carrying out structural reforms through the withdrawal from and reduction of unprofitable businesses/divisions and factory consolidation both domestically and internationally. It continues to improve gross margin through price revisions (price increases) and to pursue productivity improvements and cost reductions. A provision for business structure improvement has been recorded for the European subsidiary, and manufacturing site consolidation is in progress.
The company is investing ¥2,568 million (FY2026 (ending March 2026)) in research and development to advance the development of new products such as CMP conditioners and PCD multi-edge end mills. In May 2025, it established AA Diamond Technology Co., Ltd. to strengthen its R&D functions. It is also promoting real-time visibility of management figures and business process reform through the utilization of a new core system.
In 2023, the company additionally established subsidiaries in Vietnam and India to strengthen its expansion into emerging Asian markets. It is building a regionally diversified profit base through multi-regional expansion across Japan, Asia, Oceania, Europe, North America, and Latin America.
In addition to the existing manufacture and sale of diamond tools, the company is considering new revenue sources such as solution businesses including contract testing. It is also concurrently promoting the acceleration of development speed through the use of AI.
Last updated: July 19, 2026