Daido Kogyo

Basic Information

Stock Code
6373
Industry
Machinery
Category Detail
Industrial Equipment & Heavy Electrical Apparatus
Prefecture
Ishikawa Prefecture
Establishment Year
May 1933
Listing Year
October 1961
Official Website
https://www.did-daido.co.jp/
TSE Information
TSE Information
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Other Companies
Trust, Tokushu Denkyoku, MK System, Tiger Polymer, ONE GROUP, Harmonic Drive Systems, Nippon Gear, Tsubakimoto Chain, Oriental Chain Kogyo, Kanematsu Engineering, Ogura Clutch, River Eletech, Sanko, IA Group

Overview

Daido Kogyo is a major machinery industry company founded in 1933, holding approximately 70% share of the domestic two-wheeled vehicle chain market, and manufacturing various industrial machinery parts and high-quality rims.

Current Situation

Daido Kogyo recorded consolidated sales of approximately ¥47.2 billion and net profit of approximately ¥1.4 billion in fiscal year 2018, establishing its position as a leading domestic supplier of two-wheeled vehicle and automotive-related parts. Its main product, roller chains, holds about 70% share of the domestic market, and it is actively expanding sales channels in Asia. At the same time, it focuses on various transmission equipment for industrial machinery and welfare equipment, promoting technological innovations such as the development of Japan's first stair lift. In recent years, it has become a subsidiary of Tsubakimoto Chain, aiming for business expansion and efficiency. It continues to acquire ISO certifications, strengthen quality control systems, and engage in efforts to reduce environmental impact, focusing on contributing to the local economy and enhancing corporate value. It is raising brand awareness through sports sponsorships and other activities, and its growth strategy toward 2030 emphasizes overseas market development and new business creation.

Trivia

Interesting Facts

  • Has a history starting from bicycle parts manufacturing in 1921.
  • Largest manufacturer supplying approx. 70% of domestic two-wheeled vehicle chains.
  • Known as the developer of Japan's first stair lift.
  • Known as a silver partner of the Hanshin Tigers.
  • Founder Niia Kumakichi was also involved in the establishment of Hokuriku Bank.
  • Acquired ISO9002 certification in 1995 and focused on quality management.
  • Became a subsidiary of Tsubakimoto Chain, strengthening its business base.
  • Major supplier of large conveyors for steel mills and automotive factories.
  • Has a specialized brand for keirin chains with high competition achievements.
  • Development in welfare equipment field as part of community contribution.

Hidden Connections

  • Founding family involved in regional bank establishment, with deep ties to Hokuriku regional economy.
  • Links corporate brand with sports world through sponsorship with Hanshin Tigers.
  • Unique connection with sports industry through product supply to keirin sector.
  • Promotes overseas transaction expansion through ISO certification and international standards compliance.
  • Business expansion and technological exchange accelerating as subsidiary of Tsubakimoto Chain.

Future Outlook

Growth Drivers

  • Stable demand base in domestic two-wheeled vehicle market
  • Increasing demand for two-wheeled vehicles and industrial machinery parts in Asian emerging countries
  • Growth expectations in welfare equipment field due to aging society
  • Synergy effects from strengthened base through collaboration with Tsubakimoto Chain
  • Securing competitive advantage through development of environmentally friendly products
  • Advancement of advanced automation and digitalization in manufacturing processes
  • Expansion of unique development in niche markets such as keirin industry
  • Risk diversification through diverse product lineup

Strategic Goals

  • Increase overseas sales ratio to over 30%
  • Achieve over 50% ratio of low-environmental-impact products
  • Establish top domestic share in welfare equipment field
  • Achieve 80% automation rate in manufacturing processes
  • Maximize synergy within Tsubakimoto Chain Group
  • Strengthen development of chains for new markets and applications
  • Build sustainable corporate structure through coexistence with local communities
  • Advanced operation of ISO certifications and strengthening of quality assurance systems

Business Segments

Two-Wheeled Vehicle Parts Manufacturing

Overview
As the domestic leader, supplies high-quality two-wheeled vehicle parts and is expanding sales channels in the Asian market.
Competitiveness
Approx. 70% domestic share, high-quality production technology
Customers
  • Domestic motorcycle manufacturers
  • Overseas motorcycle manufacturers (mainly in Asia)
  • Motorcycle parts retailers
Products
  • Roller chains
  • Rims and wheels
  • Tensioners
  • Guides

Four-Wheeled Vehicle Parts Manufacturing

Overview
Has established a manufacturing system for precision parts tailored to the four-wheeled vehicle industry and supplies them stably.
Competitiveness
Quality derived from application of industrial machinery parts manufacturing technology
Customers
  • Automotive manufacturers
  • Automotive parts suppliers
Products
  • Roller chains
  • Rims and wheels
  • Belt conveyor systems

Industrial Machinery Transmission Equipment

Overview
Provides transmission equipment that supports heavy cargo transport and equipment efficiency, contributing to various industries.
Competitiveness
High-durability production technology with custom対応
Customers
  • Steel mills
  • Automotive factories
  • Conveyor equipment manufacturers
Products
  • Belt conveyor systems
  • Chain products
  • Transmission equipment

Welfare Equipment Development and Manufacturing

Overview
Researches, develops, and provides welfare equipment aimed at supporting the lives of the elderly and disabled.
Competitiveness
Track record with Japan's first product and technological capabilities
Customers
  • Welfare facilities
  • Elderly housing
  • Medical institutions
Products
  • Stair lifts
  • Other welfare support equipment

Bicycle Parts OEM Supply

Overview
OEM supplies a wide range of bicycle parts from competition to general use, with emphasis on quality.
Competitiveness
High reliability in the keirin industry
Customers
  • Bicycle manufacturers
  • Keirin-related equipment operators
Products
  • Bicycle chains
  • Keirin-specific parts

Competitive Advantage

Strengths

  • Largest domestic share in two-wheeled vehicle chains
  • Broad deployment of industrial machinery parts
  • High-quality manufacturing technology
  • Expansion of sales channels in Asian markets
  • Diverse product portfolio
  • Long years of technological accumulation and track record
  • Quality assurance through ISO certification
  • Regionally integrated management structure
  • Pioneering position in welfare equipment field
  • Brand power as pro sports sponsor
  • Stability from traditional family management
  • Customization capabilities responsive to customer needs

Competitive Advantages

  • Maintains overwhelming approx. 70% share in domestic two-wheeled vehicle chain market
  • Possesses high-durability and high-precision transmission equipment manufacturing technology
  • Product lineup corresponding to diverse industrial applications
  • Actively expanding sales channels in Asian markets and growing
  • Strengthened management resources as subsidiary of Tsubakimoto Chain
  • ISO9001/14001 certification for quality and environmental management systems
  • Capability to handle large equipment for steel mills and automotive factories
  • Technological innovation such as development of Japan's first stair lift
  • Secures stable production base through regionally integrated management
  • Brand awareness and fan base expansion through sports event sponsorships
  • Superiority in special markets with strong network in keirin industry
  • Improved customer satisfaction through custom products

Threats

  • Declining demand due to population decrease in domestic market
  • Intensifying price competition with overseas competitors
  • Risk of fluctuating raw material prices
  • Potential difficulty in keeping up with speed of technological innovation
  • Fluctuations in industrial machinery demand due to economic changes
  • Increased manufacturing costs from stricter environmental regulations
  • Global risks to supply chains
  • Impact on production system due to labor shortages
  • Risks to production sites from disasters
  • Aging of engineers and successor issues
  • Impact of economic sanctions and trade restrictions
  • Burden of product improvements due to changes in safety standards

Innovations

2022: Development of new stair lift model

Overview
Launched next-generation chair-type stair lift with enhanced convenience and safety.
Impact
Contributes to increasing demand for welfare equipment in aging society.

2021: Expansion of chain products for Asian market

Overview
Developed and began production of special-spec chains tailored to local needs.
Impact
Successfully expanded sales in Asia.

2023: Improvement of heat-resistant belt conveyor parts for steel mills

Overview
Extended service life by 20% using high heat-resistant materials.
Impact
Achieved improved customer satisfaction and reduced maintenance costs.

2020: Integrated strengthening of ISO9001 and 14001 certifications

Overview
Integrated and streamlined quality and environmental management systems across all factories.
Impact
Achieved improved product quality and reduced environmental impact.

2024: Development of chain lightweight technology using new materials

Overview
Completed prototype of chain using high-strength lightweight alloy.
Impact
Contributes to enhancing product competitiveness.

Sustainability

  • Promotion of energy-saving in manufacturing processes
  • Efforts to improve waste recycling rate
  • Promotion of design for low-environmental-impact products
  • Community coexistence promotion activities with local areas
  • Strengthening of occupational safety and health management