THK Co Ltd
TSE:6481
THK Co Ltd
THK Co., Ltd. traces its origins to 1971 when Tokujiro Kanai founded the company in Tokyo, Japan. Its mission was to revolutionize motion and control technologies. The name "THK" stands for "Toughness," "High Quality," and "Know-how," which defines its focus. THK is renowned for pioneering the first commercial Linear Motion (LM) Guide, a device that enables parts of machinery to move along a straight line with minimal friction. This innovation catapulted the company into prominence, as LM Guides became crucial components in numerous industries, such as robotics, automotive, and medical equipment, where precision and reliability are imperative.
The company's growth narrative is intertwined with its relentless dedication to innovation and expansion. THK's success is fueled by its ability to keep pace with evolving market demands, continually refining its core products and technologies while branching into diversified sectors. By establishing manufacturing and distribution facilities worldwide, THK ensures timely delivery and local support tailored to specific markets. Through this expansive network, the company generates revenue via the sale of its precision components and systems, licensing of its proprietary technologies, and offering maintenance services. Its business model thrives on creating durable and efficient solutions, crafting a symbiotic relationship between technology development and the mechanical needs of its global clientele.
THK Co., Ltd. traces its origins to 1971 when Tokujiro Kanai founded the company in Tokyo, Japan. Its mission was to revolutionize motion and control technologies. The name "THK" stands for "Toughness," "High Quality," and "Know-how," which defines its focus. THK is renowned for pioneering the first commercial Linear Motion (LM) Guide, a device that enables parts of machinery to move along a straight line with minimal friction. This innovation catapulted the company into prominence, as LM Guides became crucial components in numerous industries, such as robotics, automotive, and medical equipment, where precision and reliability are imperative.
The company's growth narrative is intertwined with its relentless dedication to innovation and expansion. THK's success is fueled by its ability to keep pace with evolving market demands, continually refining its core products and technologies while branching into diversified sectors. By establishing manufacturing and distribution facilities worldwide, THK ensures timely delivery and local support tailored to specific markets. Through this expansive network, the company generates revenue via the sale of its precision components and systems, licensing of its proprietary technologies, and offering maintenance services. Its business model thrives on creating durable and efficient solutions, crafting a symbiotic relationship between technology development and the mechanical needs of its global clientele.
Revenue: FY 2024 revenue was JPY 352.7 billion, up 0.2% year-on-year, and above the company's revised plan.
Operating Income: Operating income fell 26.8% year-on-year to JPY 17.3 billion, but still exceeded the revised plan.
Segment Performance: Industrial Machinery saw a revenue decline from last year's high backlog, while Automotive and Transportation continued to face weak auto production.
Weaker Yen: The weaker yen boosted sales in the Americas, China, and Asia, partially offsetting declines in Japan and Europe.
Guidance: FY 2025 guidance is for revenue of JPY 363.5 billion and operating income of JPY 23.5 billion, with profit attributable to owners expected at JPY 18 billion.
Strategic Reforms: Management set a new goal to achieve ROE of over 10% by focusing on profitability, cost reduction, business selection, and capital efficiency.
