Di-Nikko Engineering Co.,Ltd.

Dai Nippon Denko Engineering Co., Ltd. was founded in 1979 and is headquartered in Nikko City, Tochigi Prefecture, operating as an EMS (Electronics Manufacturing Service) company. It undertakes contract electronic component mounting on printed wiring boards and mechanical assembly for automotive equipment, medical equipment, industrial equipment, office equipment, and other applications. The company employs a division-of-labor structure in which domestic operations handle small-lot, high-value-added products, while overseas operations (China, Vietnam, Thailand, and Hong Kong) handle large-lot mass-production items. Consolidated net sales were ¥36,955 million (FY2025, ending December 2025), with the Asia segment accounting for approximately 57% of sales. The company's end products are centered on electronic modules used in automobiles, medical equipment, industrial equipment, optical equipment, office equipment, and other applications. Listed on the Tokyo Stock Exchange Standard Market.

The company provides finished-goods manufacturers with a full range of services from optimal circuit design proposals and parts procurement to prototype manufacturing, electronic component mounting, mechanical assembly, and product logistics. It has established an optimal production system tailored to the products and customers it undertakes, through a division-of-labor structure in which domestic operations handle small-lot, high-value-added products while overseas subsidiaries handle large-lot mass production. Revenue is derived primarily from contract processing fees (manufacturing outsourcing fees), with electronic component sales through the Hong Kong subsidiary serving as another revenue source. The company recorded R&D expenses of ¥355 million and is also promoting the acquisition of high-value-added projects through proprietary circuit design and module development.

Consolidated net sales for the first quarter of FY2026 (ending December 2026) came to ¥9,557 million (up 7.6% year on year), securing revenue growth. The Asia segment led the way at ¥5,660 million (up 16.9% year on year), while the Japan Segment saw revenue decline to ¥3,793 million (down 5.5% year on year). Over the past five fiscal periods, net sales have been on a declining trend, from a peak of ¥39,203 million in FY2023 (ended December 2023) to ¥36,955 million in FY2025 (ended December 2025), and the full-year forecast of ¥41,000 million for FY2026 (up 10.9% from the previous period) aims to reach a record-high level. Operating profit deteriorated sharply to ¥58 million, mainly due to the cost of sales ratio rising from 88.3% in the same period of the previous year to 90.7%. As external factors, restrained capital investment in semiconductor manufacturing equipment for industrial equipment—caused by concentrated investment in generative AI-related semiconductors—along with increased cost burdens from rising resource prices and unstable foreign exchange rates, weighed on performance. The first-quarter progress rate against the full-year operating profit forecast of ¥1,080 million stood at only 5.4%, meaning that achieving the forecast requires a significant recovery in the second half.