TOUMEI CO., LTD.【JP:4439】Stock Price

Tomei is a company that provides telecommunications, electricity, and office-related services on a one-stop basis for small and medium-sized enterprises and sole proprietors nationwide. The company offers bundled line and support services under "Office Hikari 119," operates electricity retail under "Office Denki 119," and also handles sales and installation of office equipment as well as web and insurance services.

The primary customers are small and medium-sized enterprises and sole proprietors, with recurring revenue from line contracts, electricity sales, and installation and maintenance services forming the core of earnings. The company has established its own call center and billing collection systems, building a stable revenue base through telemarketing and customer acquisition via subsidiaries.

The business is organized into three segments: "Office Hikari 119," "Office Denki 119," and "Office Solutions." Telecommunications services are provided by adding proprietary support to existing lines; electricity is procured from the market and supplied through transmission and distribution networks; and the Solutions segment handles sales and installation of business equipment, LED lighting, air conditioning, solar panels and battery storage systems, as well as web rental services under "Rentaro-kun" and franchise operations of in-store insurance services, aimed at improving customer operational efficiency and providing management support.

Based on its medium-term management plan "NEXT GROWTH 2027" launched in September 2024, the company targets the following for the fiscal year ending August 2027: revenue of 40.2 billion yen, operating profit of 4.63 billion yen, earnings per share (EPS) of 108.67 yen, and return on equity (ROE) of 26.1%. Growth will be driven by expanding recurring revenue from line contracts and power sales, with emphasis on increasing new customer acquisitions and reducing churn to build contracted line numbers. The company is also expanding its service areas and increasing headcount. It opened the Takamatsu Sales Office (March 1, 2025) and Fukuoka Second Sales Office (April 1, 2025), and hired over 100 employees to strengthen field operations.

The company is prioritizing investment in digital customer acquisition and sales force enhancement. It aims to acquire new contracts through strengthened in-house web marketing, expanded web advertising, and enhanced telemarketing via subsidiaries, while implementing retention measures based on customer needs to reduce churn among existing customers. Specifically, the company is improving average revenue per user (ARPU) through cross-selling "Office Light 119" and "Office Electricity 119," and upselling security products. It is also differentiating itself by providing one-stop added value through call center operations and improved billing collection systems.

The company plans to develop new businesses and expand its service areas, using M&A and alliances to accelerate market entry. In the office solutions sector, it is focusing on solar power and battery storage sales, creating new revenue streams through sales strategies leveraging power customer data. The company has also established specialized subsidiaries in digital marketing and telemarketing, aiming to expand recurring revenue through new office openings in untapped areas and service expansion.

The company positions technological innovation and talent development as critical management priorities. It is advancing digital transformation (DX) of operations and creating personalized and new services through customer data analysis. It is strengthening organizational capability and governance through education lab development and expansion to accelerate sales staff productivity, as well as information security and compliance training. The renewable energy sales ratio reached 71.6% as of August 2025, exceeding targets.