KURODA PRECISION INDUSTRIES LTD.JP:7726Stock Price

Market cap
¥5.7B
P/E ratio
44x
Kuroda Seiko manufactures precision industrial components including ball screws, press molds, and measurement equipment for manufacturing companies worldwide.

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Business Overview

Kuroda Seiko operates three business segments: Drive Systems, Mold Systems, and Machine Tools & Measurement Systems. These segments are managed by the company and its affiliated companies.

The Drive Systems segment manufactures and sells precision ground ball screws, rolled ball screws, ball screw actuators, XY stages, guides, and gears. These products are manufactured by Kuroda Seiko and Jenaer Gewindetechnik GmbH (Germany), with sales handled by Kuroda Seiko Korea, KURODA JENA TEC, INC. (United States), and Pinghu Kuroda Seiko Co., Ltd.

The Mold Systems segment provides laminated precision press molds, precision metal press products, and motor cores. These are manufactured and sold by Kuroda Seiko and Kuroda Precision Industries (M), with Jenaer Gewindetechnik GmbH handling sales of press products. Pinghu Kuroda Seiko Co., Ltd. is responsible for mold maintenance and sales.

The Machine Tools & Measurement Systems segment provides tool holders, gauges, surface grinders, ultra-precision mirror-finish polishing equipment, and ultra-precision surface shape measurement equipment. These products are manufactured and sold by Kuroda Seiko, with Pinghu Kuroda Seiko Co., Ltd. and Gauging Inc. manufacturing and selling select products.

Management Policy

Kuroda Seiko's mission is to support the advancement of global industries through precision technology. Under its management philosophy of "P&P" (precision and productivity improvement), the company continuously develops new technologies and products, aiming to establish a brand known worldwide for quality and reliability.

The company has formulated its medium-term management plan "Vision 2025" covering fiscal years 2021 through 2025, targeting global niche-top positions across three business segments: drive systems, mold systems, and machine tools and measurement systems. Through this plan, the company aims to execute growth strategies and strengthen profitability, establishing a framework to consistently secure an operating profit margin of over 4% to 8%.

In the drive systems business, the company is strengthening its position as a small linear motion systems manufacturer and expanding into markets beyond semiconductors. In the mold systems business, it is improving mass production technology for high-efficiency motor cores for electric vehicles and targeting orders from Chinese OEM manufacturers. In the machine tools and measurement systems business, it is accelerating the expansion of new products and technical development while strengthening its overseas sales network.

Kuroda Seiko is also advancing digitalization to strengthen profitability, technical capabilities, and customer relationships. The company is prioritizing ESG management and has formulated a roadmap to achieve carbon neutrality by fiscal year 2050. Through these initiatives, the company aims to enhance environmental sustainability and increase corporate value.

Regarding human resources, the company is promoting diversity and implementing work style reforms to create a workplace where all employees can work comfortably. Additionally, the company is improving governance and enhancing investor relations activities to strengthen dialogue with shareholders, aiming to increase corporate value.