CKD Corporation
6407.TMEDIUMScore: 38.8Battery Production Equipment / Industrial Automation · Weight: 2%· Data as of 2026-06-03
Investment Thesis
CKD makes lithium-ion battery winding machines that directly support Honda/GS Yuasa's MPP battery production ramp. As Honda accelerates its e-motorcycle push in Vietnam (UC3 local production 2026) and India (world's largest dedicated e-motorcycle factory, Narasapura), battery manufacturing equipment demand at Honda's supply chain — particularly GS Yuasa (Honda's battery JV partner) — scales up. CKD also makes pneumatic automation components used in Honda's Asian motorcycle factories. Confirmed: CKD produces Li-ion battery winding machines for automotive batteries (stated mission: 'supports electrification of automobiles'). Revenue +15.8% FY2025; earnings grew 35.7% vs machinery industry average 5.8%; most recent quarter beat consensus by 20% on EPS. PEG ratio ~1.0x (PE 36x / earnings growth 35.7%) — reasonable for growing industrial. Also benefits from broader EV battery production ramp (Panasonic EV cells in Japan, any domestic Li-ion cell maker expanding capacity).
Risk
1) PE 36x is elevated — expensive if battery equipment orders disappoint or cycle turns (consensus already revised growth to 1.9% forward, but recent beats suggest this is too conservative). 2) PBR 3.0x may be above 80th percentile for industrial cyclicals (guardrail triggered). 3) Battery winding machine revenue is a minority of CKD's total (pneumatics/automation is larger) — if automation slows, the battery equipment story is insufficient to sustain valuation. 4) CKD-Honda battery supply link is PROBABLE not CONFIRMED — direct CKD→Honda relationship not evidenced in press releases.
Monitoring Trigger
Add if: CKD announces specific battery production equipment order wins at Honda-affiliated suppliers (GS Yuasa, Panasonic EV Energy). Trim if: PE expands above 40x without corresponding earnings revision. Exit if: Battery winding machine segment revenue stalls below 10% of total for 2 consecutive quarters.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Automatic Machines (incl. battery winding) | est. ¥65-70B | ~43% | Li-ion battery winding machines, assembly/packaging equipment. Key growth driver. |
| Fluid Control (Pneumatics) | est. ¥85-90B | ~57% | Pneumatic cylinders, solenoid valves, flow controllers. Used in Honda/Toyota/automotive manufacturing plants. |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| probable | GS Yuasa / Honda·GS Yuasa EV Battery R&D JV | Li-ion battery winding machines | Honda·GS Yuasa EV Battery R&D Co., Ltd. is Honda's battery technology joint venture. GS Yuasa manufactures Li-ion batteries for Honda MPP (Mobile Power Pack). CKD is Japan's primary maker of precision battery winding machines. As GS Yuasa scales MPP production for Honda's Vietnam/India e-motorcycle ramp, CKD winding machine orders increase. |
| probable | Honda Vietnam / Thai Honda (UC3 production) | Pneumatic automation components (cylinders, valves) | Honda's Asian motorcycle factories (Vietnam, Thailand, India) rely on pneumatic automation from companies including CKD for assembly lines. As Honda Vietnam ramps UC3 e-motorcycle local production in 2026, automation component demand increases. |