YUKEN KOGYO CO., LTD. (6393) Stock Price

Market cap
¥13.8B
P/E ratio
13.5x
Yuken Industries manufactures hydraulic pumps, control valves, industrial machinery systems, and environmental equipment for global markets through 22 companies.

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Business Overview

Yuken Industries manufactures and sells hydraulic products, system products, and environmental machinery. The company group consists of 22 companies in total, including 11 consolidated subsidiaries, 5 non-consolidated subsidiaries, and 5 affiliated companies.

The Hydraulic Products division manufactures and sells hydraulic pumps and motors, pressure control valves, flow control valves, directional control valves, and various hydraulic control equipment. Major operations are located in Japan, Asia, and Europe, including Hokuriku Yuken Co., Ltd. and Taiwan Yuken Co., Ltd.

The System Products division manufactures and sells industrial machinery hydraulic systems, standard hydraulic units, and hydraulic cylinders, as well as provides maintenance and service. Key bases include Yuken Service Co., Ltd. in Japan and Taiwan Yuken Co., Ltd. in Asia.

The Environmental Machinery division manufactures and sells automatic chip compactors, automatic PET bottle volume reduction machines, and automatic multi-compactors. The division operates in Japan and Asia, with Yuken India LTD. as one of its major companies.

As other operations, the company manufactures and sells castings that serve as components for hydraulic products. In Asia, GROTEK ENTERPRISES PRIVATE LIMITED is a major company in this business.

Management Policy

Yuken Industrial Co., Ltd. actively develops, manufactures, and sells hydraulic equipment, system products, and environmental machinery. The company pursues international expansion based on proprietary technology, with a particular focus on strengthening the "YUKEN" brand presence in Asian markets. This strategy aims to establish a highly profitable business across Japan, Asia, and global markets.

In the increasingly competitive hydraulic equipment sector, the company is strengthening proposal-based sales tailored to customer needs. Under its Medium-Term Management Plan Step 1 (April 2022–March 2025), the company is improving profitability through enhanced product supply capacity and cost reduction. Additionally, it is expanding high-end product sales in niche overseas markets and optimizing production systems.

On the technology front, the company is advancing the integration of electrical control and digital technology while focusing on energy-efficient product development. At its Japanese factories, the company provides precision solutions with high energy efficiency and is strengthening human capital investment. In the rapidly growing Indian market, the company is expanding its product portfolio and entering new business areas.

As a corporate responsibility, Yuken Industrial practices ESG management and strengthens its response to decarbonization. The company is also increasing environmental investments and building a more employee-friendly workplace. Through these efforts, it aims to address social challenges through its business operations.

Under Medium-Term Management Plan Step 2 (April 2025–March 2028), the company will execute its growth strategy with targets of consolidated net sales of 37 billion yen, operating profit of 3 billion yen, and ROE of 8.0% or higher by March 2028. This approach will enable sustainable growth and enhance corporate value.

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