CMK CORPORATION
6958・Prime Market・Electric Appliances
Business
Nippon CMK Corporation is a company listed on the Prime Market of the Tokyo Stock Exchange, primarily engaged in the manufacturing and sale of printed wiring boards. The group, comprising the company along with 11 subsidiaries and 1 affiliated company, operates production and sales facilities across four regions: Japan, China, Southeast Asia (Thailand and Malaysia), and Europe and the United States (Belgium, Germany, and the United States). The domestic Japan segment accounts for approximately 60% of net sales, with major customers including Japanese automotive parts manufacturers such as Denso (net sales of ¥35,155 million for the current period, representing 35.1% of the total). The company has set forth a mid-to-long-term vision of contributing to the realization of a safe and secure automotive society through the development and supply of high-value-added substrates that support ADAS, autonomous driving, and EV adoption.
Business Model
The company has built a role-differentiated global structure centered on the manufacturing of high-value-added products (build-up boards, high heat dissipation substrates, etc.) at domestic factories, complemented by local production in China and Southeast Asia and sales support in Europe and the United States. Based on continuous orders from its major customers, automotive parts manufacturers, it secures earnings by enhancing cost competitiveness through higher value-added products and improved production efficiency. R&D is consolidated in Japan, with R&D expenses for the current period totaling ¥553 million.
Company Strengths
Sales to the major customer Denso reached ¥35,155 million in the current period (¥31,185 million in the previous period), accounting for 35.1% of consolidated net sales. Continued order expansion has been confirmed as a track record, forming a stable customer base that accounts for the majority of the Japan segment's net sales of ¥61,670 million.
Under certification from the Japan Aerospace Exploration Agency (JAXA), the company has established a development and supply system for high-reliability, high environmental-resistance substrates. It is also advancing collaboration with new space-related startups, promoting the sophistication of substrate technology for millimeter-wave radar, ADAS sensors, and control modules for power electronics, and possesses the technical capability to expand into new fields beyond automotive applications.
As a result of the enlargement of production equipment implemented in the previous fiscal year and the integrated management of the two China plants, the China segment profit for the current period reached ¥2,792 million (a 77.3% increase year on year). The promotion of local management led directly to improved profitability through rationalization and reduction of defect rates.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), revenue reached ¥100,202 million (up 4.9% year on year), achieving revenue growth for the fifth consecutive fiscal year and surpassing the ¥100,000 million mark for the first time. However, operating profit fell sharply to ¥2,788 million (down 26.8% year on year), and the operating profit margin declined to 2.8% (from 4.0% in the previous period). The main cause was a loss of ¥1,476 million in the Southeast Asia segment due to start-up costs for the new plant in Thailand and costs associated with strengthening the quality control system. Ordinary profit also fell to ¥4,136 million (down 25.3% year on year). On the other hand, the recording of a gain of ¥1,891 million on the sale of investment securities helped secure net profit attributable to owners of the parent of ¥4,026 million (up 6.2% year on year). For FY2027 (ending March 2027), the company forecasts revenue of ¥104,000 million, operating profit of ¥3,200 million, and net profit of ¥2,000 million, anticipating a significant decline in net profit (down 50.3% year on year) due to an expected increase in the depreciation burden from the new plant in Thailand.
Growth Strategy
Achieving mid-term growth through three pillars: full-scale mass production ramp-up at the new Thailand plant, shift toward high-value-added products, and development of new business domains
Construction in progress decreased significantly from ¥33,659 million to ¥12,304 million, reflecting a full-scale shift toward asset capitalization. In the second half of FY2026 (ending March 2026), certain effects of profitability improvement measures were confirmed, but the Southeast Asia segment recorded a full-year loss of ¥1,476 million. In FY2027 (ending March 2026), depreciation burden from the new Thailand plant is expected to be a factor compressing profit, making improvement in capacity utilization and fixed-cost absorption an urgent priority.
In the second half of FY2026 (ending March 2026), an increase in high-value-added products contributed to improved profitability in the Japan segment (segment profit of ¥2,591 million, up 17.1% year on year). The company continues to expand orders for automotive ADAS and driving safety-related products, aiming to reduce the cost-of-sales ratio through improved product mix.
In the Southeast Asia segment, sales of Printed Wiring Boards for Home Appliances performed well (net sales of ¥17,396 million, up 11.6% year on year). The company has explicitly stated its intention to "promote sales expansion into new business areas beyond automotive," positioning the reduction of dependence on the automotive market and diversification of revenue sources as a mid-term challenge.
The larger panel sizes for production equipment and the management integration of the two China plants implemented in the previous fiscal year bore fruit in the current fiscal year, achieving segment profit of ¥2,792 million (up 77.3% year on year). This substantial profit increase, achieved despite headwinds from declining sales to Europe due to reduced EV demand, reflects the results of structural reform, and productivity improvement and cost reduction will continue to be promoted.
Last updated: July 19, 2026