Hakudo Co.,Ltd.

Business Details

Handled by Hakudo Co., Ltd. and AQR Co., Ltd. Products are purchased from material manufacturers and other competitors across a wide range of items and continuously stocked at factories as standard inventory. Cutting and milling processing is applied according to orders, with short lead-time delivery. Main target customers are manufacturing companies in semiconductor manufacturing equipment, aerospace, and machine tools, with a focus on aluminum, copper alloy, and stainless steel. External customer sales for FY2026 (ending March 2026) were ¥59,372 million, accounting for approximately 87% of the group total.

Recent Overview

Sales increased, but ordinary income declined year on year due to higher SG&A expenses and a rising fixed-cost ratio.

External customer sales in the Japan segment for FY2026 (ending March 2026) were ¥59,372 million (up approximately 2.5% year on year). Higher product unit prices due to raw material market conditions and increased sales volume to the aerospace industry contributed positively, while sales volume to the semiconductor manufacturing equipment industry declined for the full year due to sluggish demand in the first half. Ordinary income decreased to ¥3,088 million (from ¥3,237 million in the prior period). Increased rent payments associated with factory construction and expansion, higher freight unit costs, and increased advertising expenses weighed on profit. A second Saitama factory was newly established in January 2026 to strengthen the production system. The number of items handled on Hakudo Net Service was expanded to 270,200.

Key Products

Growth Drivers

• Recovery in capital expenditure in the semiconductor manufacturing equipment industry driven by expanding demand for advanced semiconductors for generative AI (demand recovery became pronounced from the second half of FY2026 onward)
• Continued steady recovery in demand for commercial aircraft in the aerospace industry and continued strength in defense-related government demand
• Strengthened customer base and improved convenience through expansion of items handled on Hakudo Net Service (270,200 items) and addition of new features
• Expanded production capacity and capture of new demand through the establishment of a second Saitama factory (January 2026) and introduction of a fiber laser processing machine at the Shiga factory
• Strengthened sales expansion of aluminum and stainless steel sheets and development of new customers and reactivation of dormant customers, mainly in the aerospace and automotive industries
• Recovery in external and domestic demand in the machine tool industry driven by active investment and automation/labor-saving investment in the semiconductor industry

Risks

• Risk of demand fluctuation in the semiconductor manufacturing equipment industry (delayed recovery in demand for smartphones and PCs, slowing EV demand, limited recovery in demand for the Chinese market)
• Risk of fluctuation in inventory valuation impact due to changes in raw material market conditions such as electrolytic copper benchmark prices and aluminum ingots (aluminum ingot prices rose from ¥492 thousand at the end of the prior period to ¥635 thousand at the end of the current period, while stainless steel sheet prices fell from ¥600 thousand to ¥570 thousand)
• Profit margin pressure from rising fixed-cost ratio due to increased rent payments associated with new factory construction, floor space expansion, and head office expansion
• Increased SG&A expenses due to rising freight unit costs and strengthened advertising activities
• Uncertainty in the economic outlook and rising raw material and energy prices due to prolonged U.S. trade policy (tariffs) and geopolitical risks
• Risk of delayed demand recovery due to the continuing trend of postponed capital expenditure in the machine tool industry