Hakudo Co.,Ltd.
7637・Prime Market・Wholesale Trade
Business
Hakudo Co., Ltd. is a non-ferrous metal specialty trading company founded in 1932, which procures metal materials such as aluminum, copper alloys, and stainless steel from material manufacturers, processes them through cutting, milling, and other operations at its own factories, and delivers them to customers with short lead times. In Japan, the company maintains approximately 5,700 standard inventory item sizes at all times, primarily targeting manufacturing customers in industries such as semiconductor manufacturing equipment, aerospace, machine tools, and automobiles. Overseas, the company has consolidated subsidiaries in the United States, China, and Thailand, with the Japan segment accounting for approximately 87% of the group's net sales of ¥68,110 million. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company maintains constant stock of metal materials purchased in bulk from material manufacturers at its own factories, and creates added value by performing processing such as cutting and milling in response to customer orders, delivering with short lead times. Standard inventory products have a high gross margin ratio, and the structure is such that fluctuations in sales volume directly impact profitability. The company also engages in e-commerce sales through "Hakudo Net Service" (270,200 items), aiming to secure an advantage in non-price competition and improve profit margins.
Company Strengths
As of the end of March 2026, "Hakudo Net Service" (Hakudo Net Service) handled 270,200 items, and the addition of new functions such as "Estimate/Order by DATA" and "Draw to Estimate/Order" enabled instant quotation and ordering of waterjet- and laser-processed products. It is the company's proprietary digital sales infrastructure that supports improved customer convenience and differentiation through non-price competition.
The company operates plants in Kanagawa, Shiga, Fukushima, Saga, Saitama (two sites), and Fukuoka, and newly established the Saitama No. 2 Plant in January 2026. A fiber laser processing machine was also introduced at the Shiga Plant. This multi-site processing equipment network is a physical infrastructure that is difficult for competitors to replicate in a short period, serving as a source of competitive advantage that enables next-day delivery and short-lead-time response.
At the end of FY2026 (ending March 2026), the equity ratio stood at 53.5% (53.1% at the end of the previous fiscal year), and cash and cash equivalents totaled ¥7,670 million. Cash flow from operating activities increased significantly year on year to ¥4,493 million. This near debt-free financial structure combined with ample cash on hand supports the financial flexibility to fund capital expenditures, overseas expansion, and shareholder returns from retained earnings.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥57,253 million in FY2024 (ended March 2024) and increased for two consecutive periods, reaching ¥68,109 million in FY2026 (ending March 2026), up 2.6% year on year. The main drivers were higher unit prices for products due to rising raw material market prices (aluminum ingot: ¥492 thousand/t → ¥635 thousand/t; electrolytic copper price: ¥1,540 thousand/t → ¥2,040 thousand/t) and an increase in sales volume to the aerospace industry. On the other hand, sales volume to the semiconductor manufacturing equipment industry declined for the full year due to sluggish demand in the first half, and combined with rising freight unit costs and increased fixed costs, operating profit declined to ¥2,872 million, down 3.7% year on year. Operating cash flow improved significantly to ¥4,493 million (versus ¥1,782 million in the previous period), and the cash balance increased to ¥7,670 million. For FY2027 (ending March 2027), against the backdrop of a full-scale recovery in capital expenditure for semiconductors, the company forecasts a sharp increase in both revenue and profit, with revenue of ¥84,000 million and operating profit of ¥4,310 million.
Growth Strategy
Aiming for substantial growth in both revenue and profit through three key pillars: evolution of e-commerce services, expansion of processing capacity, and strengthening of overseas operations
Expanded to 270,200 items as of the end of March 2026. New features such as "Quote & Order with DATA" and "Draw to Quote & Order" have enabled instant quotation and ordering for waterjet and laser-processed products, improving customer convenience and order-processing efficiency.
The new Saitama No. 2 Plant was established in January 2026, enhancing production capacity in anticipation of growing demand related to semiconductors and expanding sales in growth areas such as the aerospace industry. A fiber laser processing machine has also been introduced at the Shiga Plant to capture new demand.
Acquired an additional 49% equity stake in West Coast Aluminum & Stainless, LLC for ¥212,577 thousand, making it a wholly owned subsidiary (June 2025). The aim is to strengthen governance, enhance competitiveness in the North American market, and create synergies, thereby improving profitability in overseas operations.
Continuing efforts to develop new customers and reactivate dormant customers, centered on the aerospace and automotive industries designated as growth areas. In parallel, promoting expanded sales of aluminum and stainless steel sheet products to diversify the revenue base.
Last updated: July 19, 2026