NICHIDEN Corporation
9902・Prime Market・Wholesale Trade
Business
Nichiden Co., Ltd. is a specialized trading company founded in 1952, primarily dealing in power transmission equipment, industrial equipment, and control equipment. It handles a wide range of machinery and equipment-related products, including reducers, bearings, conveyors, servo motors, and robot-related equipment, supporting the manufacturing industry as a whole in advancing sophistication, labor saving, and safety improvements. The company operates multiple distribution centers and sales offices domestically, and has overseas subsidiaries in China, Thailand, Vietnam, and the United States. Its consolidated subsidiaries include NPA System, which designs and manufactures hydraulic systems, and Apérza, an online platform for the manufacturing industry, forming a solution-provision framework that goes beyond mere trading company functions. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company procures and supplies a wide range of products across three fields—power transmission, industrial, and control—to manufacturing customers, with the margin between purchase and sale prices serving as its main source of revenue. The gross profit margin has remained stable at 15.3%. Working capital is funded principally from internal funds, and the company maintains sound finances while deepening customer relationships through value-added sales activities such as exhibition participation and DX (digital transformation) solution proposals.
Company Strengths
The company has sales results of ¥57,319 million in Power Transmission Equipment, ¥33,603 million in Industrial Equipment, and ¥49,745 million in Control Equipment, totaling ¥141,033 million across the three segments. Procurement results also reached ¥118,678 million, having built a stable procurement network spanning a wide variety of products. The company has low dependency on specific customers or specific products, and possesses a diversified customer base with no single customer accounting for more than 10% of sales.
The company has established a region-focused sales structure through three logistics centers in the West, East, and Central regions along with a nationwide block-based sales network. Overseas, it operates subsidiaries in China, Thailand, Vietnam, and the United States, maintaining a global procurement and sales infrastructure. Since its founding in 1952, the relationship assets with customers and suppliers accumulated over more than 70 years constitute unique assets that competitors would find difficult to replicate in a short period.
Against net assets of ¥91,897 million (as of the end of FY2026, ending March 2026), the company maintains a financial policy of funding working capital and capital expenditure primarily through its own funds. Operating cash flow secured was ¥4,304 million, and cash and cash equivalents stood at ¥16,206 million. This financial structure, which is close to being debt-free, supports management stability during periods of economic fluctuation.
ENVALITH's Perspective
Performance Trend
Revenue increased 13.8% over five fiscal years from ¥123,964 million in FY2022 (ended March 2022) to ¥141,033 million in FY2026 (ending March 2026), maintaining a revenue growth trend. Profit attributable to owners of parent reached a record high of ¥5,114 million. However, operating profit declined 3.0% year on year to ¥6,622 million (from ¥6,824 million in the prior period), with the operating margin falling to 4.7%. On the external factor side, solid capital expenditure demand related to semiconductor manufacturing equipment, inbound tourism demand, and improving income conditions supported revenue, while US tariff policy and geopolitical risks curbed capital expenditure in some industries. Rising SG&A expenses remain a challenge for improving profitability.
Growth Strategy
Under 'New Dedication2026,' enhancing corporate value through DX, automation, and sustainability management
Continued participation in comprehensive exhibitions across Japan, along with DX seminars and business automation proposals through collaboration with consolidated subsidiary Aperza. The company aims to capture DX demand across a wide range of areas, from manufacturing sites to internal infrastructure, and to shift from mere product supply to solution-oriented, problem-solving sales.
From FY2026 (ending March 2026), the company formulated an 'Environmental Policy,' 'Human Rights Policy,' 'Ethics and Compliance Policy,' and 'Sustainable Procurement Guidelines,' initiating efforts toward realizing a sustainable society across the entire supply chain. In October 2025, the company published its first 'Integrated Report 2025,' strengthening dialogue with stakeholders.
The annual dividend forecast for FY2027 (ending March 2027) has been significantly raised to ¥100 (from ¥70 in the previous period), with a projected payout ratio of 53.7%. As a subsequent event, the company resolved to acquire treasury shares up to a limit of ¥2,000 million and 600,000 shares (from June to December 2026) and to cancel them on March 31, 2027. The company aims to improve capital efficiency through agile capital policy.
Last updated: July 19, 2026