NICHIDEN Corporation

Business Details

The Group is a specialized trading company engaged primarily in the sale of power transmission equipment, industrial machinery, control equipment, and related machinery and equipment products. Its customer base spans the manufacturing industry broadly, centered on domestic manufacturers seeking labor-saving, automation, and DX (digital transformation) solutions. Built around its core strengths of "proposal capability" and "procurement capability," the company captures capital expenditure demand related to decarbonization, DX, and labor shortage responses. Through group companies, it also operates an online platform and hydraulic system design and manufacturing, and conducts overseas sales. In FY2026 (ending March 2026), net sales reached ¥141,033 million (up 4.6% year on year), achieving revenue growth, but operating profit declined 3.0% year on year due to increased selling, general and administrative expenses.

Recent Overview

Net sales rose 4.6% to ¥141,033 million, but operating profit declined 3.0% due to increased SG&A expenses

In FY2026 (ending March 2026), the control equipment segment (up 7.9% year on year) led growth, resulting in net sales of ¥141,033 million. However, selling, general and administrative expenses expanded to ¥14,998 million (up 8.2% year on year), causing operating profit to decline 3.0% year on year to ¥6,622 million. Ordinary profit increased 3.7% year on year to ¥7,465 million, supported by improvement in non-operating income (recording of ¥138 million in foreign exchange gains and the disappearance of losses on disposal of fixed assets and treasury stock acquisition costs). In October 2025, the company issued its first "Integrated Report 2025" and formulated an "Environmental Policy" and "Human Rights Policy," among others, to advance sustainability management. As a subsequent event, on May 8, 2026, the company resolved to acquire and retire up to 600,000 shares of treasury stock for up to ¥2,000 million (retirement scheduled for March 31, 2027). For FY2027 (ending March 2027), the company forecasts net sales of ¥150,000 million, operating profit of ¥7,300 million, and an annual dividend of ¥100 (up ¥30 year on year).

Key Products

Growth Drivers

• Steady labor-saving investment demand in response to decarbonization, DX, and labor shortage needs
• Solid capital expenditure in the industrial electrical machinery sector centered on semiconductor manufacturing equipment (control equipment segment up 7.9% year on year)
• Recovery in production machinery and easing of excessive caution amid progress in U.S. tariff negotiations
• Strengthened DX solution proposal capability through continued participation in comprehensive exhibitions across Japan
• Efforts toward realizing a sustainable society across the supply chain through the formulation of the "Sustainable Procurement Guidelines"
• Collaboration with Aperza on DX seminars and proposals for administrative department work automation

Risks

• Slowdown in manufacturing capital expenditure due to U.S. tariff policy, China's rare earth export restrictions, and geopolitical risks
• Rising crude oil prices and difficulty procuring related materials amid escalating Middle East tensions and prolonged conflict
• Pressure on operating margin from a rising trend in selling, general and administrative expenses (¥14,998 million in FY2026 (ending March 2026), up 8.2% year on year)
• Increased working capital burden from a rise in trade receivables (up ¥1,988 million)
• ROE (5.7%) and ordinary profit to total assets ratio (6.0%) remain below the medium-term management plan targets (8.0% and 6.5%, respectively)
• Risk of rising procurement costs due to prolonged yen depreciation and higher raw material and fuel prices