NAKAMURA CHOUKOU CO.,LTD.
6166・Growth Market・Machinery
Business
Nakamura Choukou Co., Ltd. is a precision processing manufacturer headquartered in Sakai City, Osaka Prefecture, founded in 1954 and established in 1970. Its core business is the design, manufacture, and sale of special precision parts and tools using highly wear-resistant hard-brittle materials such as diamond, cemented carbide, and ceramics, with main products including Diamond Nozzles for electronic component mounting machines and diamond tools for automotive and bearing manufacturing. In addition, the company operates two growth investment businesses: Diamond Wire for Power Semiconductors and Hard-to-Cut Materials (D-Next Business), and Nano-size Zeolite developed jointly with the University of Tokyo (Material Science Business). In FY2026 (ending March 2026), the company sold and deconsolidated its Spinning Nozzles for Chemical Fibers business (Nippon Nozzle Co., Ltd.), transitioning to a three-business structure. Its main customers are domestic and overseas manufacturers in the electronic components, semiconductor, automotive, and bearing industries.
Business Model
In the Special Precision Equipment business, the company leverages its processing technology for hard and brittle materials such as diamond to operate a made-to-order manufacturing business, selling nozzles for electronic component mounting machines and wear-resistant tools to domestic and overseas customers. In the D-Next Business, the company manufactures and sells its own Diamond Wire for Power Semiconductors and Hard-to-Cut Materials, while also handling sales of manufacturing equipment (the Diamond Wire Manufacturing Equipment (PHX-01)). In the Material Science Business, the company pursues a commercialization model that transitions its proprietary Nano-size Zeolite from sample supply to mass-production adoption. The company invests ¥114 million annually in research and development, continuing technology development that leverages collaboration among industry, academia, and government.
Company Strengths
The company established a low-cost technology for nano-sizing zeolite through joint development with the University of Tokyo, and received a certification of success in 2019 under the industry-academia joint practical development program of the Japan Science and Technology Agency (JST). It has achieved formal adoption in cosmetics and toothpaste applications, and is continuing evaluation for multiple other uses including electronic component encapsulants, catalysts, and separation membranes.
Since its founding in 1954, the company has accumulated 70 years of processing technology for hard and brittle materials such as diamond, cemented carbide, and ceramics, and deploys this expertise across a wide range of applications including nozzles for electronic component mounting machines, wear-resistant tools, diamond wire, and the Micro Reactor System. The start of mass production sales of mounting machine nozzles made from new materials and its new entry into the semiconductor manufacturing field substantiate this technological capability.
In March 2026, the company sold all shares of Nippon Nozzle Co., Ltd. and used the proceeds to substantially repay borrowings, including syndicated loans, resulting in a sharp improvement in the equity ratio from 15.1% at the end of the previous fiscal year to 63.9%. Cash and cash equivalents at fiscal year-end stood at ¥1,083 million, establishing a financial foundation that enables concentrated investment in the remaining three business segments.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) rose only slightly to ¥2,768 million (up 4.8% year on year), while the operating loss came to ¥163 million (versus operating income of ¥7 million in the prior period), pushing the core business into the red. The main causes were weakness in the Special Precision Equipment business due to higher U.S. auto tariffs and the slowdown in the Chinese economy, and poor performance in the D-Next Business amid a sluggish semiconductor market. On the other hand, gains on the sale of Nippon Nozzle and an extraordinary gain related to arbitration led to net income of ¥276 million for the period. For FY2027 (ending March 2027), following the separation of the chemical fiber business, revenue is forecast at ¥1,300 million, with an operating loss of ¥160 million and a net loss of ¥230 million, representing the lowest revenue scale in the past five fiscal periods.
Growth Strategy
Following the transition to a three-business structure, the company is simultaneously advancing profitability initiatives across Special Precision Equipment, D-Next Business, and Nano-size Zeolite
The company is accelerating full-scale mass production sales of nozzles for mounting machines made from new materials, expanding orders from automotive parts manufacturers through trading company channels, and pursuing new entry into the semiconductor manufacturing industry. It also aims to capture demand for precision parts processing arising from the closure of competitors, targeting net sales of ¥900 million (up 21.3% year on year) for FY2027 (ending March 2027).
The company is continuing to expand its market share among major domestic Diamond Wire users (development of major domestic customers is nearly complete) and to cultivate overseas customers, primarily for semiconductor applications. It aims to increase sales volume and achieve profitability for the business, targeting net sales of ¥360 million (up 55.9% year on year) for FY2027 (ending March 2027).
The business was transferred effective April 1, 2026, through a corporate split to Zeo Next Co., Ltd. The company is advancing the next phase of mass production for electronic component encapsulant applications and developing new applications such as catalysts, separation membranes, and metal ion adsorption. It targets net sales of ¥40 million (up 211.6% year on year) for FY2027 (ending March 2027), and has already established a sales organization for full-scale global market development.
Through the sale of all shares of Nippon Nozzle Co., Ltd. (proceeds of ¥1,684 million), the company fully repaid its interest-bearing debt, including syndicated loans. It has established a sound financial base with an equity ratio of 63.9% and cash of ¥1,083 million, securing capacity for growth investment in its remaining three businesses.
Last updated: July 19, 2026