CKD Corporation
6407・Prime Market・Machinery
Business
CKD Corporation was founded in 1943 and is headquartered in Komaki City, Aichi Prefecture, as an industrial equipment manufacturer. Its business consists of two segments: the Components Division and the Automatic Machinery Division. The Components Division supplies pneumatic cylinders, directional control valves, Fluid Control Equipment, electric actuators, and similar products to a wide range of industries, including semiconductor manufacturing equipment, automobiles, and secondary batteries. The Automatic Machinery Division provides pharmaceutical packaging machines, Lithium-ion Battery Manufacturing Systems, solder paste inspection machines, and other products on a build-to-order basis. Through 21 domestic and overseas subsidiaries, the company has built a global structure spanning Asia, Europe, and the Americas, and as a company listed on the Tokyo Stock Exchange Prime Market and the Nagoya Stock Exchange Premier Market, it attracts significant attention from institutional investors.
Business Model
The Components Division adopts a forecast-based production system driven by anticipated demand, securing stable revenue by manufacturing and selling a wide variety of Pneumatic Control Equipment and Fluid Control Equipment in large volumes. The Automatic Machinery Division delivers large-scale equipment under a build-to-order production system, with post-delivery maintenance and modification services (Packaging Services) generating recurring revenue that helps support profit margins. While continuing shareholder returns with a target dividend payout ratio of 40%, the company funds capital expenditure and R&D investment primarily through operating cash flow.
Company Strengths
The company successively launched multiple manufacturing sites within a short period: the US Austin plant (operational in 2022), the India plant (operational in 2024), the new Malaysia plant (operational in 2025), and the Hokuriku plant (completed in 2024). This strengthened supply capacity for growth markets such as semiconductors, ASEAN, and India, resulting in Components Division sales of ¥138,513 million (up 6.3% year on year).
The company commercialized "Eco Scrap Technology," which reduces waste by 70%, and has received various environmental awards for it. It has also achieved mono-material PTP sheets, demonstrating technological differentiation as a leading manufacturer of pharmaceutical packaging machines. In the Automatic Machinery Division, Packaging Services (maintenance and remodeling) remained solid, and segment profit margin improved even amid a decline in sales.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 67.7% (up 3.0 percentage points year on year), net assets were ¥153,538 million, and cash and cash equivalents were ¥42,258 million. While utilizing an unsecured syndicated loan of ¥20,000 million (repayable in May 2031), the company secured operating cash flow of ¥14,832 million, achieving both financial soundness and liquidity.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥134,425 million in FY2024 (ended March 2024), then recovered to ¥155,634 million in FY2025 (ended March 2025) (up 15.8% year on year) and ¥157,886 million in FY2026 (ending March 2026) (up 1.4% year on year), maintaining a recovery trend, though the growth rate slowed significantly. Operating profit came to ¥19,640 million (up 3.3% year on year), with the operating margin improving slightly to 12.4% from 12.2% in the previous period. As an external factor, capital investment in semiconductor equipment related to generative AI accelerated from the second half of the period, while more cautious capital investment for BEVs and the completion of major investment cycles for generic pharmaceuticals significantly pushed down sales in the Automatic Machinery Division. Comprehensive income rose substantially to ¥21,841 million (from ¥11,603 million in the previous period), driven by improvements in foreign currency translation adjustments (¥4,332 million) and remeasurements of defined benefit plans (¥1,381 million).
Growth Strategy
Three pillars: focus on the semiconductor and battery markets, global share expansion, and strengthening the services business
Against a backdrop of continued investment in large-scale data centers related to generative AI and the growing adoption of AI-enabled devices, demand for equipment used in semiconductor manufacturing equipment continues to trend upward. In FY2026 (ending March 2026), semiconductor-related sales increased significantly in Japan, China, and other parts of Asia, driving growth in the Components Division. This is also positioned as a key growth driver for FY2027 (ending March 2027).
Leveraging a consolidated subsidiary network of 4 domestic and 17 overseas companies, the company is strengthening its business foundation in China, Southeast Asia, India, Europe, and the United States. In FY2026 (ending March 2026), an impairment loss of ¥342 million was recorded on business assets and goodwill related to European operations, leaving improvement of profitability in the European business as a remaining challenge. In China, capital expenditure related to semiconductors and secondary batteries remained solid, with sales reaching ¥25,481 million (up 7.6% year on year).
Packaging Services, centered on maintenance and refurbishment of packaging machines, remained solid, and while net sales in the Automatic Machinery Division declined 23.5% year on year, segment profit margin improved (segment profit of ¥4,879 million, margin of 25.2%). The strategy of expanding stock-type revenue to enhance earnings stability against fluctuations in large orders is showing certain results.
The company continues its stable shareholder return policy targeting a dividend payout ratio of around 40%. The annual dividend for FY2026 (ending March 2026) was ¥81 (up ¥1 year on year, payout ratio of 39.9%), and for FY2027 (ending March 2027) an annual dividend of ¥95 is planned (target payout ratio of around 39.0%). The company maintains this policy while balancing growth investment in human capital, R&D, and strengthening its business foundation with capital efficiency.
Last updated: July 19, 2026