ENVALITH
株式会社ニチダイ logo

NICHIDAI CORPORATION

6467・Standard Market・Machinery

Official website
株式会社ニチダイ logo
NICHIDAI CORPORATION6467

Business

Nichidai Corporation, founded in 1967, is a precision processing manufacturer operating three segments: the Mold Business, the Precision Components Business, and the Filter Business. In the Mold Business, the company's core products are precision forging molds for automotive parts manufacturers, while the Precision Components Business supplies precision forged automotive components to customers both domestically and overseas. In the Filter Business, the company develops a niche-focused operation manufacturing and selling Sintered Metal Filters for the petrochemical, pharmaceutical, food, and nuclear power industries. In addition to its domestic bases (Kyotanabe City and Ujitawara Town, Kyoto Prefecture), the company has overseas subsidiaries in Thailand and the United States, conducting business globally. Its main customers are Japanese automotive industry companies, with the Mitsubishi Heavy Industries group accounting for approximately 26.9% of net sales. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

A build-to-order business model in which the company manufactures and delivers Precision Forging Molds, forged components, and Sintered Metal Filters based on customer orders. It creates added value by leveraging its core technologies—precision forging technology and diffusion bonding (sintering) technology—to provide high-quality, high-performance products. The company has set a target operating margin of 10% of net sales, but in FY2026 (ending March 2026) it continued to fall short, posting an operating loss of ¥409 million. Fundraising is based principally on internal funds, supplemented by borrowings from financial institutions as needed.

Company Strengths

The equity ratio at the end of FY2026 (ending March 2026) remained at a high level of 75.6%, with interest-bearing debt balance limited to ¥1,482 million. The ratio of cash flow to interest-bearing debt stood at a favorable 2.4 years, and operating cash flow secured ¥610 million even amid a phase of operating loss. The stability of the financial base represents an advantage over competitors from the perspective of business continuity and investment capacity.

The Filter Business supplies Sintered Metal Filters to a diverse range of industries outside the automotive sector, including petrochemicals, pharmaceuticals, food, and nuclear power, and remained the only segment to maintain an ordinary profit (¥66 million) in FY2026 (ending March 2026). The company differentiates itself from competitors centered on diffusion bonding (sintering) technology, and is also focusing on new product development for the aerospace, pharmaceutical, and next-generation environmental fields.

Through its Thailand base centered on NICHIDAI(THAILAND)LTD., overseas sales of the Precision Components business reached ¥1,942 million (up 10.6% year on year) in FY2026 (ending March 2026). The company made it a wholly owned subsidiary in March 2024, and completed group reorganization by absorbing THAI SINTERED MESH CO.,LTD. in July 2025. Development of a sales platform for Asia continues to progress.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue was ¥10,992 million (down 5.3% year on year), and the company posted an operating loss of ¥408 million (versus operating profit of ¥153 million in the prior period), a rapid deterioration. In the Precision Components business, an impairment loss of ¥236 million was recorded, widening the ordinary loss to ¥220 million. The heavy fixed-cost burden led to pronounced profit deterioration amid declining revenue, making improvement of the cost structure—cost of sales ratio of 83.6% and SG&A ratio of 20.1%—an urgent priority. External headwinds included continued inventory adjustments in the Japanese automotive industry, the slowdown in the Chinese economy, and decelerating expansion of the EV market in Europe and the US.

The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥11,200 million (up 1.9% year on year) and a return to operating profit of ¥10 million, but due to the initial investment recognition related to Nichidai Sansera Private Limited, which is scheduled to be accounted for using the equity method, an ordinary loss of ¥85 million and a net loss attributable to owners of the parent of ¥126 million are projected. This represents a forecast of net losses for two consecutive periods. While the annual dividend is planned to be maintained at ¥6 (an increase from ¥4 in the prior period), the payout ratio cannot be calculated. The interest coverage ratio has been declining, at 40.9 times (versus 61.8 times in the prior period), warranting attention to the delay in earnings recovery.

The majority of revenue is generated from the Japanese automotive industry, and the structure whereby the company is directly affected by major customers' production reorganization and inventory adjustments remains unchanged. The shift toward electrification has been temporarily eased by solid demand for HVs and PHVs, but responding to the next-generation vehicle product lineup remains a medium- to long-term challenge. External factors such as tariff measures, geopolitical risk, and difficulty procuring rare metals are adding further uncertainty. The order backlog of ¥3,107 million (up from ¥2,911 million in the prior period) serves as a certain leading indicator, but it is expected to take time before this translates into earnings.

Growth Strategy

Aiming for earnings recovery through three pillars: expanding customer development, realizing the benefits of the Thailand merger, and launching new products

In light of conditions in the automotive industry, the company expects to increase sales by expanding its product areas and further promoting customer development. For FY2027 (ending March 2027), an increase in sales for the Mold Business is planned, with a policy of diversifying the customer base by strengthening sales expansion outside the automotive industry.

In July 2025, the absorption-type merger of THAI SINTERED MESH CO.,LTD. into NICHIDAI(THAILAND)LTD. was completed. Leveraging the cost efficiencies and strengthened business foundation resulting from the merger, the company expects an increase in sales for the Filter Business in FY2027 (ending March 2027). In FY2026 (ending March 2026), temporary demand decline and business restructuring expenses of ¥82 million associated with the merger were incurred, but the benefits of the merger are expected to materialize from the following fiscal year onward.

In FY2026 (ending March 2026), the company recorded a decline in sales, an ordinary loss of ¥220 million, and an impairment loss of ¥236 million due to reduced demand from major customers. The company plans to focus on launching new products currently under inquiry from the next fiscal year onward, while working to improve production efficiency to achieve a recovery in performance. A decline in sales is also expected for FY2027 (ending March 2027), and recovery is expected to take time.

The company plans to newly establish "Nichidai Sansera Private Limited," which is expected to become an equity-method affiliate, in order to expand into the Indian market. For FY2027 (ending March 2027), initial investment associated with the first-year launch is expected to be recorded, which is anticipated to be the main cause of an ordinary loss of ¥85 million. While positioned as a mid- to long-term growth base, expenses are expected to precede revenue in the first year.

Last updated: July 19, 2026