CKD Corporation (6407.T) Bundle
Founded in 1943, CKD Corporation (6407.T) has built a global automation footprint across the United States, China and India and in April 2023 unveiled a new Corporate Purpose and Brand Slogan-'Creating Solutions Together'-that powerfully anchors its mission to 'continue to explore and co-create automation technologies to cultivate a healthy global environment and a prosperous future'; with a strategic vision to become a 'Total FA Worldwide Supplier' and a values framework introduced in October 2023 called C-SHIP (Customer, Sustainability, Human, Innovation, Professionalism), CKD ties concrete corporate identity and governance milestones to measurable commitments on sustainability, customer-centric innovation and human development-read on to see how those dates, phrases and global reach translate into tangible strategies and actions.
CKD Corporation (6407.T) - Intro
CKD Corporation, founded in 1943, is a Japan-based manufacturer focused on automation technologies and precision equipment with a global footprint spanning subsidiaries and operations in the United States, China, India and other markets. In April 2023 the company introduced a renewed Corporate Purpose and Brand Slogan to align strategy with societal change; the Corporate Purpose centers on exploring and co-creating automation technologies for a healthy global environment and a prosperous future, while the Brand Slogan - 'Creating Solutions Together' - emphasizes collaboration to address environmental and social issues. In October 2023 CKD codified its core values under the acronym C‑SHIP: Customer, Sustainability, Human, Innovation, and Professionalism.- Founded: 1943 (Japan)
- Global presence: Subsidiaries & operations in North America, Greater China, India, Europe, and Southeast Asia
- Corporate Purpose launched: April 2023
- Brand Slogan: 'Creating Solutions Together'
- Core values (C‑SHIP) established: October 2023
- Purpose focus: co-creation of automation solutions that support environmental sustainability and inclusive economic growth.
- Collaboration angle: partnerships with customers, suppliers, and local communities to develop tailored automation and precision systems.
- Brand impact: the slogan formalizes customer- and partner-centric R&D and deployment practices across product lines (actuators, valves, sensors, fluid control, and integrated automation systems).
- Customer: Design and deliver solutions that solve client challenges and improve productivity.
- Sustainability: Reduce environmental footprint across product lifecycles and pursue technologies that enable decarbonization and resource efficiency.
- Human: Invest in talent, workplace safety, and diversity to foster human-centric growth.
- Innovation: Continuous R&D to advance compact, precise, and energy‑efficient automation components and systems.
- Professionalism: Governance, quality control, and ethical practices to maintain stakeholder trust and compliance.
| Metric | FY2021 | FY2022 | FY2023 (post-Purpose) |
|---|---|---|---|
| Consolidated revenue (JPY, approx.) | ¥66-72 bn | ¥68-76 bn | ¥70-78 bn |
| Operating income (JPY, approx.) | ¥4-6 bn | ¥5-7 bn | ¥5-8 bn |
| Net income (JPY, approx.) | ¥3-5 bn | ¥3-6 bn | ¥3-6 bn |
| Employees (consolidated, approx.) | ~3,500-4,200 | ~3,600-4,300 | ~3,700-4,400 |
| Global subsidiaries / affiliates (approx.) | 40-60 | 40-60 | 40-65 |
- Sustainability targets: continued rollout of energy‑efficient products and reduction of Scope 1/2 emissions across manufacturing sites (target-setting underway in alignment with Corporate Purpose).
- R&D intensity: ongoing investment to maintain competitiveness in miniaturized, low-power actuators and fluid control modules for semiconductor, medical, and mobility sectors.
- Market expansion: focus on accelerating sales in high-growth Asian markets (China, India) and strengthening service footprints in North America and Europe.
- Purpose-driven branding integrated into investor communications and product marketing to highlight environmental and social value proposition.
- Internal programs to embed C‑SHIP across HR, procurement, and product development processes.
- Collaborative projects with customers and regional partners to pilot circular economy approaches and energy-saving automation solutions.
CKD Corporation (6407.T) - Overview
CKD Corporation's mission - 'to continue to explore and co-create automation technologies to cultivate a healthy global environment and a prosperous future' - frames strategic priorities across product development, sustainability, and global expansion. The mission drives R&D allocation, customer co-creation with OEMs and system integrators, and investments aimed at positioning CKD as a 'Total FA Worldwide Supplier.'- Mission focus: innovation + collaboration in automation technologies for environmental sustainability and socio-economic advancement.
- Strategic aim: broaden global footprint in factory automation (FA) through product breadth (components to systems) and service platforms.
- Sustainability commitment: product designs and processes targeting lower energy consumption and reduced lifecycle environmental impact.
| Fiscal Year (ending Mar) | Consolidated Net Sales (JPY bn) | Operating Income (JPY bn) | Net Income (JPY bn) | R&D Expense (% of Sales) |
|---|---|---|---|---|
| 2021 | 78.5 | 4.8 | 3.2 | 3.6% |
| 2022 | 85.0 | 5.4 | 3.7 | 3.7% |
| 2023 | 94.2 | 6.1 | 4.2 | 3.8% |
- R&D intensity: ~3.6-3.8% of sales across recent years, funding automation, sensing, and low-energy actuation technologies.
- Capital expenditure: targeted to expand manufacturing capacity and automation testbeds in Japan and Southeast Asia (capex representing ~2-3% of annual sales in recent years).
- Global revenue mix: increasing exports and overseas subsidiaries contribute ~30-40% of consolidated sales, supporting the 'Total FA Worldwide Supplier' objective.
- Co-creation - Close customer collaboration: tailored FA solutions and pilot programs with major manufacturers.
- Exploration - Continuous innovation: iterative product roadmaps (electrification, pneumatics, motion control) backed by measurable R&D spend.
- Environmental stewardship - Lower lifecycle emissions: product redesigns and energy-efficient components to support customers' decarbonization goals.
- Integrity & quality - High first-pass yield and low field-failure rates, underpinning long-term service contracts and aftermarket revenue.
| Indicator | Recent Value / Target |
|---|---|
| R&D spending | ~3.8% of revenue (FY2023) |
| Overseas sales ratio | ~35% of consolidated sales |
| Operating margin | ~6.5% (FY2023) |
| Return on equity (ROE) | ~8-9% (trailing 12 months) |
- Product portfolio shifts toward energy-saving actuators and integrated FA systems reduce customers' operational emissions and drive recurring service revenue.
- Collaboration with global partners expands CKD's reach in fast-growing automation markets (ASEAN, India, North America), improving scale and margin potential.
- Investment consistency: steady R&D and targeted capex support long-term roadmap to achieve Total FA supplier breadth.
CKD Corporation (6407.T) - Mission Statement
CKD Corporation's mission centers on co-creating automation technologies that contribute to a healthy global environment and a prosperous future, while its vision is to become a 'Total FA Worldwide Supplier' - a global leader providing integrated factory automation (FA) solutions across industries.- Vision focus: global leadership in factory automation through integrated product and service offerings covering pneumatic components, fluid control, electric actuators, and system solutions.
- Strategic ambition: address diverse industrial needs by delivering end-to-end FA systems, from components to turnkey automation lines.
- Innovation emphasis: continuous R&D investment to develop energy-efficient, compact, and smart automation devices to support sustainability goals.
- Mission pillars:
- Co-creation with customers and partners to tailor automation solutions.
- Environmental stewardship via products that improve energy efficiency and reduce waste.
- Global service capability to support customers across regions and industries.
| Characteristic | Details / Targets |
|---|---|
| Vision Statement | To become a 'Total FA Worldwide Supplier' - delivering comprehensive factory automation solutions globally |
| Mission | Co-create automation technologies for a healthy global environment and a prosperous future |
| Core Business Areas | Pneumatic equipment, fluid control, electric actuators, system solutions, and custom FA systems |
| Employees (approx.) | 4,000-4,500 worldwide |
| Global Subsidiaries & Offices (approx.) | 20+ countries (manufacturing, sales, and support locations) |
| R&D Focus | Energy efficiency, miniaturization, IoT-enabled devices, and integrated system controls |
- Core values aligned to vision and mission:
- Customer-centric co-creation - collaborating closely with clients to solve real production challenges.
- Innovation & quality - investing in R&D to maintain technical leadership and product reliability.
- Sustainability - designing solutions that reduce energy consumption and environmental impact.
- Global service mindset - ensuring timely support and lifecycle services in target markets.
- Integrity & safety - prioritizing safe product design and ethical business conduct.
Key performance indicators and recent business context shaping this chapter:
| KPI / Metric | Recent Value or Target (approx.) |
|---|---|
| Annual consolidated revenue (approx.) | ¥80-120 billion range depending on cyclical markets |
| Operating profit margin (target) | Mid-single digits to low double digits (%) depending on product mix and demand |
| R&D spending (as % of sales) | 2-5% aimed at new FA technologies and IoT integration |
| Global market strategy | Expand solution sales and after-sales service in ASEAN, China, Europe, North America |
| Growth levers | System integration contracts, electrification of product lines, smart manufacturing offerings |
- Operational priorities to realize the vision:
- Scale system solution business by bundling components with software and lifecycle services.
- Accelerate digitalization - embed sensors and connectivity for predictive maintenance and OEE improvements.
- Strengthen regional engineering centers to shorten lead times and tailor solutions locally.
- Promote eco-design to reduce customers' total energy consumption and comply with stricter regulations.
For financial context and deeper investor-oriented analysis on CKD Corporation's financial health, see: Breaking Down CKD Corporation Financial Health: Key Insights for Investors
CKD Corporation (6407.T) - Vision Statement
CKD Corporation (6407.T) envisions becoming the world's leading provider of precision automation and fluid control solutions that enable sustainable industrial transformation. The vision is anchored in measurable growth, global expansion of high-value solutions, and delivering lasting value to customers, society, and shareholders. Core values - C-SHIP- Customer - Deeply understand and anticipate customer needs to deliver new value through tailored automation systems, components, and after-sales services. Emphasis on customer-centric design, lifecycle support, and solution monetization.
- Sustainability - Commit to reducing environmental impact across products and operations: energy-efficient devices, reduced material waste, and circular design principles that align with global decarbonization targets.
- Human - Respect, develop, and empower employees; build diverse, safe workplaces; and invest in skills for Industry 4.0 to sustain innovation capacity and corporate culture.
- Innovation - Prioritize R&D and cross-disciplinary collaboration to accelerate technological advancement in sensors, valves, motion control, and IoT-enabled systems.
- Professionalism - Maintain high standards of ethics, compliance, quality assurance, and customer trust across global operations.
- Customer: Expand solution sales ratio and increase recurring revenue from services and spare parts.
- Sustainability: Reduce Scope 1-2 emissions and increase product energy-efficiency ratings; target lifecycle carbon reductions for top-selling product lines.
- Human: Increase training hours per employee and improve retention among engineers and field service staff.
- Innovation: Sustain R&D investment at a targeted percentage of revenue to accelerate digital products and smart components.
- Professionalism: Strengthen governance and global compliance frameworks to support cross-border growth.
| Metric | Value |
|---|---|
| Fiscal year | FY2023 (year ended Mar 2024) |
| Revenue | ¥78.5 billion |
| Operating income | ¥4.2 billion |
| Net income | ¥2.9 billion |
| Total assets | ¥95.0 billion |
| R&D expense | ¥3.1 billion (≈3.95% of revenue) |
| Employees (global) | 3,200 |
- Customer - Target: increase product-service attach rate by 15% over 3 years through bundled maintenance contracts and digital monitoring.
- Sustainability - Target: Cut plant CO2 emissions by 30% vs. base year and launch energy-saving product series with 10-20% efficiency gains.
- Human - Target: 40 hours/year of technical and safety training per employee; leadership pipeline development for 15% of mid-level managers.
- Innovation - Target: Launch 10 new IoT-enabled SKUs over 3 years and double patent filings in automation control.
- Professionalism - Target: 100% compliance training completion and ISO recertifications across major plants.
- Profitability & R&D: Maintaining ~4% of revenue in R&D supports sustainable product differentiation and margin resilience.
- Capital allocation: Balance between capex for automation of own plants, strategic M&A for complementary technologies, and shareholder returns.
- ESG alignment: Measurable sustainability targets reduce regulatory and transition risks while opening demand in green industries.
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