ENVALITH
株式会社大真空 logo

DAISHINKU CORP.

6962Prime MarketElectric Appliances

株式会社大真空 logo
DAISHINKU CORP.6962

Business

Daishinku Corp. is a specialized manufacturer that handles the entire process from growing artificial crystal to producing and selling crystal devices, including General Crystal Units / Tuning Fork Crystal Units and Crystal Oscillators (TCXO, etc.). With domestic locations (Hyogo, Tottori, Tokushima, Kyushu) as core manufacturing bases, the company operates globally through a network of 14 companies, including manufacturing subsidiaries in Taiwan, China, Indonesia, and Thailand, and sales subsidiaries in the United States, Germany, Hong Kong, Singapore, and other locations. Major customers are manufacturers in the automotive (ADAS, electrification), telecommunications (5G, optical transceivers), consumer (wearables, PCs), and industrial/AI data center sectors, with overseas sales accounting for approximately 87% of total sales.

Business Model

The company internalizes the entire process of crystal growth, processing, and assembly at its domestic mother factory, transferring technology to and outsourcing manufacturing to overseas manufacturing subsidiaries. Finished products are sold directly by regional sales subsidiaries to manufacturers in the automotive, communications, consumer, and industrial sectors. The company's proprietary Arkh Series achieves 5 to 7 times the output of conventional methods through WLP (Wafer Level Package) technology, aiming to improve profitability by combining cost competitiveness with high added value.

Company Strengths

The Arkh Series adopts photolithography and WLP (Wafer Level Package) technology, achieving 5-7x output per unit area compared to conventional 1-by-1 manufacturing through wafer-level batch processing. It eliminates the need for ceramic packages and conductive adhesives, reducing material costs, and further cost reductions are being pursued through the adoption of larger 6-inch wafers. The company has established a proprietary manufacturing process that is difficult for competitors to replicate in a short period.

The company develops and manufactures a wide variety of products in-house, including Crystal Units, Crystal Oscillators (SPXO, TCXO, OCXO), and crystal filters, and holds the No.1 share in the crystal filter field. The Arkh Series product lineup has been expanded to include crystal units (Arkh.3G, Arkh.6G), oscillators (Arkh.2G), and high-frequency differential output oscillators (supporting 625MHz), promoting customer lock-in through single-source supply.

With a history of over 60 years since its founding in 1963, the company operates multiple domestic sites in addition to manufacturing subsidiaries in Taiwan, China, Indonesia, and Thailand, and sales subsidiaries in the United States, Germany, Hong Kong, Singapore, and other locations. In FY2026 (ending March 2026), overseas sales amounted to ¥34,462 million, accounting for approximately 87% of the total, reflecting a global customer base and supply system that has been built up. In October 2025, a new site was also established in Poland, strengthening the company's expansion in Europe.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) was ¥1,133 million (up 23.9% year on year), improving for the second consecutive period, but remains at roughly 22% of the FY2022 (ended March 2022) peak of ¥5,195 million. Although increased production and sales of high-value-added products and cost reductions contributed positively, gross profit margin declined slightly, with gross profit falling from ¥9,325 million in the previous period to ¥9,184 million, as the increase in cost of sales (¥30,367 million) weighed on margin improvement. As an external factor, a sharp rise in memory semiconductor prices led to a decline in demand in the communications and consumer sectors, negatively affecting the sales mix.

Cash flow from operating activities for FY2026 (ending March 2026) turned sharply negative at ¥(1,779) million, deteriorating significantly from ¥2,296 million in the previous period. The main cause was an increase in inventories of ¥(5,566) million, with raw materials and supplies nearly doubling from ¥6,492 million to ¥11,980 million. The ratio of cash flow to interest-bearing debt and the interest coverage ratio could not be calculated due to the negative operating cash flow, while short-term borrowings surged from ¥8,455 million to ¥15,020 million. Although financing activities generated ¥1,249 million in cash flow, cash and cash equivalents declined to ¥15,979 million.

The consolidated earnings forecast for FY2027 (ending March 2027) projects both higher revenue and higher operating profit, with net sales of ¥41,000 million (up 3.7%) and operating profit of ¥1,400 million (up 23.5%), while ordinary profit is forecast at ¥780 million (up 6.2%) and profit attributable to owners of parent is forecast to decline sharply to ¥100 million (down 76.2%). The assumed exchange rate is ¥150/USD. Amid continued external factors such as stagnation in the US economy, weak domestic demand in China, and ongoing geopolitical risks, expansion of mass production and sales of the Arkh Series is key to earnings recovery; however, the lack of disclosure regarding the specific scale of its sales contribution makes progress monitoring an important issue for investment decisions.

Growth Strategy

Paradigm shift in the crystal device industry through the Arkh concept and advancement of the OCEAN+2 strategy

Rolling out the world's thinnest Arkh.3G (adopting WLP technology, targeting IC integration) and Arkh.2G (a crystal oscillator compatible with conventional products). Wafer-level batch processing achieves 5 to 7 times the output compared to conventional methods, establishing overwhelming cost advantage and productivity. No new factory construction is required, also suppressing CO2 emissions.

Positioning competitors as partners, the company promotes industry standardization by supplying Arkh Series crystal units as the "embedded crystal unit" within crystal oscillators. Rather than limiting supply to a single company, the aim is to spread adoption across the entire industry, expanding market size and creating stable demand.

Capturing expanding demand for differential output oscillators driven by the increase in AI data centers, optical transceivers, and the spread of edge AI, as well as demand for thin, lightweight crystal devices for wearables such as smart glasses. Steady growth in the automotive sector (ADAS, electrification) also continues to serve as a growth driver. External tailwinds in the market environment are also present.

Advancing DX promotion and the development of fully automated production through the introduction of automated transport robots, realizing a "factory of the future" suited to an era of declining working population. Continuing to enlarge crystal wafer sizes and pursuing continuous technological innovation to establish an unmatched competitive advantage, achieving both improved profitability and reduced environmental impact.

The Arkh Series uses little heavy oil and no helium, giving it product characteristics resilient to geopolitical risks such as heightened tensions in the Middle East. The increase in raw materials and stored goods (from ¥6,492 million in the previous period to ¥11,980 million in the current period) is also positioned as part of strengthening the stable supply system, though balancing this against cash flow deterioration from the rapid rise in inventory remains a challenge.

Last updated: July 19, 2026