The Kodensha,Co.,Ltd. (1948) Stock Price

Koden Corporation operates two main business segments: electrical equipment construction services and product sales. In electrical equipment construction, the company provides design, construction, and contracting services for indoor wiring, power transmission lines, power generation and transformation facilities, telecommunications, and air conditioning systems. Through these services, the company offers installation and maintenance of various electrical equipment.

In product sales, the company handles general-purpose electrical equipment, industrial electrical and electronic equipment, and heating and cooling residential equipment. Based on a distributor agreement with its parent company Mitsubishi Electric Corporation, Koden Corporation procures and sells Mitsubishi Electric products. The company also procures and sells residential equipment and heating and cooling residential equipment from Mitsubishi Electric Housing Environment Systems Corporation.

In its electrical equipment construction business, Koden Corporation's subsidiary Koden Construction Corporation handles part of the construction work, while Koden Mechanical Engineering (Beijing) Co., Ltd. handles part of design and estimation work. Additionally, the company receives part of its construction orders from parent company Mitsubishi Electric Corporation. This structure enables efficient business operations.

In its medium-term management plan announced in January 2024, Koden Corporation has identified "carbon neutrality" and "building a safe, secure, and comfortable society" as priority areas. To address these social challenges, the company aims to leverage its comprehensive capabilities in electrical equipment and product sales, promote collaboration with other companies, and deliver high-value-added solutions to achieve sustainable growth.

By fiscal year 2027, Koden Corporation plans to expand its business domains and customer base through growth investments, building on trust relationships with valued customers. The company aims to optimize its business structure and establish a stable, high-level earnings framework. The company also prioritizes governance and compliance while working to create a more comfortable workplace environment.

To realize sustainable growth, Koden Corporation is strengthening its management and business foundations. For fiscal year 2027 and beyond, the company is promoting stable profit generation, growth investments, and shareholder returns. Specifically, as part of efforts to strengthen construction capabilities, the company has acquired all shares of Toshin Electric Industries Co., Ltd., and is implementing dividend increases and interim dividends.

Under its medium-term management plan, Koden Corporation aims to generate operating profit of 3 billion yen or more over the three-year period from fiscal years 2024 to 2026. For fiscal year 2027 and beyond, the company has set targets of operating profit of 20 billion yen or more, operating profit margin of 5% or more, net income of 15 billion yen or more, and ROE of 8% or more. These targets are designed to enhance corporate value.