ENVALITH
千代田インテグレ株式会社 logo

CHIYODA INTEGRE CO.,LTD.

6915・Standard Market・Electric Appliances

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千代田インテグレ株式会社 logo
CHIYODA INTEGRE CO.,LTD.6915

Business

Chiyoda Integre Co., Ltd., founded in 1955, is a precision components manufacturer listed on the Standard Market of the Tokyo Stock Exchange. The company manufactures and sells structural and functional components for OA equipment, AV equipment, communication equipment, and AE equipment through a network of 22 companies spanning five regions: Japan, Southeast Asia, China, North America, and Europe. Its main customers are electrical equipment manufacturers in each region, with earnings supported by a multi-site presence across Southeast Asia centered on its Singapore holding company, and a five-site structure in China centered on its Hong Kong holding company. Domestically, the company is also advancing research and development of its proprietary LCP film material, aiming to expand into next-generation, high-value-added products.

Business Model

The domestic parent company develops products and technologies and charges royalties to 16 overseas subsidiaries, while each local subsidiary receives orders from regional electronics manufacturers and manufactures and sells locally under a "federal management" model. In Southeast Asia, the Singapore holding company outsources manufacturing to subsidiaries within the region and sells the products, serving an intermediate holding function; in North America, a two-tier structure is used for efficiency, in which the U.S. subsidiary outsources processing to the Mexican subsidiary. Capital expenditures are basically funded internally, and the company maintains financial soundness with interest-bearing debt of ¥1,543 million.

Company Strengths

The company operates 22 companies across Japan, Southeast Asia (Malaysia, Thailand, Indonesia, Vietnam, Philippines), China (5 locations), North America (US and 2 Mexican companies), and Europe (Slovakia, Germany). Its local production-for-local-consumption manufacturing and sales structure enables supply close to customers' production sites, diversifying region-specific risk.

As of the end of December 2025, the company held cash and cash equivalents of ¥16,795 million, while interest-bearing debt remained limited at ¥1,543 million. Against total net assets of ¥40,284 million, total liabilities stood at ¥10,026 million, maintaining a high equity ratio. The company maintains a financial policy of funding capital expenditure principally through internal funds.

The company independently developed film-forming technology for super engineering plastic LCP (liquid crystal polymer) resin, and is conducting spec-in activities for its "Pericure LCP0050BX-B" and "Pericure LCP0025BX-B" low-dielectric circuit board films for 5G and millimeter-wave communication applications. R&D expenses of ¥59 million were concentrated in the Japan segment, and development of high heat-resistant LCP film is also ongoing.

ENVALITH's Perspective

Net income attributable to owners of the parent for Q1 FY2026 (ending December 2026) was ¥1,230 million (up 292.4% year on year), a large increase in profit. However, this includes an extraordinary gain of ¥1,124 million from the sale of investment securities, and ordinary income of ¥762 million (up 23.4% year on year) is closer to the company's actual earnings level. The full-year net income forecast of ¥3,500 million (revised upward from the previous forecast of ¥2,600 million) is also largely attributable to this gain on sale, and the scope of improvement in core business should be viewed as limited.

The Japan segment saw a sharp recovery, with sales of ¥2,678 million (up 20.9% year on year) and operating profit of ¥170 million (versus a loss of ¥2 million in the same period last year), driven by increased production by customers of Structural & Functional Components for AE Equipment. Southeast Asia also remained solid, with sales of ¥3,377 million (up 3.7% year on year) and operating profit of ¥381 million (up 3.6% year on year). On the other hand, China continued to see double-digit declines in profit, with sales of ¥2,026 million (down 9.7% year on year) and operating profit of ¥125 million (down 33.9% year on year), due to sluggish demand for gaming equipment amid the semiconductor shortage and a decline in OA/AV equipment, widening the performance gap between regions.

During the first quarter, the company acquired 304,000 shares of treasury stock (approximately ¥1,051 million), increasing the treasury share balance at period-end to 813,701 shares (up from 509,701 shares at the previous fiscal year-end). Due to the decrease in the average number of shares outstanding during the period (from 10,052,693 shares in the same period last year to 8,967,228 shares this period), net income per share improved significantly to ¥137.26. However, against net assets of ¥38,706 million, the full-year net income forecast of ¥3,500 million implies an ROE of approximately 9%; on a true-earnings basis excluding the gain on sale, continuous improvement in core business profit is essential to achieve the medium-term management plan's target of ROE 8% or higher.

Growth Strategy

Under the medium-term management plan (2025-2027), the company aims to expand its high value-added business and achieve net sales of ¥45.0 billion for FY2027 (ending December 2027)

A core initiative of the medium-term management plan (2025-2027). The company is strengthening relationships with key customers and expanding share, centered on AE equipment applications. By combining proprietary processing technologies, it aims to shift from single-item components to high value-added composite products, thereby improving profitability. In the first quarter of FY2026 (ending December 2026), AE equipment applications in Japan and Southeast Asia performed well, with the effects of this initiative becoming partially evident.

Through digital transformation of administrative departments, the company aims to reduce indirect costs and shift resources toward sales, planning, and proposal activities. Selling, general and administrative expenses increased to ¥1,852 million in the first quarter of FY2026 (ending December 2026) (versus ¥1,801 million in the same period of the previous year), reflecting the continuation of the investment phase.

In the first quarter of FY2026 (ending December 2026), the company acquired 304,000 shares of treasury stock for approximately ¥1,051 million. By reducing the average number of shares outstanding during the period, it aims to improve earnings per share and enhance ROE. The annual dividend forecast is maintained at ¥160 (the same amount as the previous fiscal year's actual result), ensuring continuity of shareholder returns.

In China, net sales declined 9.7% year on year and operating profit declined 33.9% year on year in the first quarter of FY2026 (ending December 2026), due to weak demand for gaming equipment caused by the semiconductor shortage and a downturn in OA/AV equipment. The company aims for recovery through expanded infrastructure investment by the Chinese government and strengthened relationships with key customers, but external factors such as the sluggish real estate market and slow recovery in personal consumption continue, and the timing of recovery remains uncertain.

Last updated: July 17, 2026