TOMOE ENGINEERING CO.,LTD.JP:6309Stock Price

Market cap
¥57.3B
P/E ratio
13.4x
Tomoe Industrial manufactures centrifuges and liquid-solid separation equipment for chemical and manufacturing industries worldwide, while also trading chemical products across Asia and Europe.

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Business Overview

Tomoe Industrial is a machinery manufacturer specializing in the manufacturing and sales of centrifuges. The company primarily provides industrial centrifuges and equipment utilizing liquid-solid separation technology. Additionally, it operates a chemical products trading and sales business, growing as a globally operating enterprise.

The company's customers are primarily chemical and manufacturing industries. Its revenue structure is supported by two main pillars: machinery manufacturing and sales, and chemical products sales. In the machinery business, beyond centrifuge unit sales, the company secures ongoing revenue through after-sales services and parts sales. In the chemical products business, the company functions as a trading company primarily in Asian markets, establishing a stable revenue base.

The company's operations are divided into two main segments: machinery manufacturing and sales, and chemical products sales. In the machinery business, alongside domestic manufacturing and sales, the company has established local production and sales operations in China and North America to advance its global expansion. In the chemical products business, operating from Hong Kong as its base, the company has developed a sales network across China, Southeast Asia, and Europe, conducting sales activities tailored to regional demand.

Management Policy

Tomoe Industrial has formulated a new medium-term management plan titled "Create The New Future" with the fiscal year ending October 2028 as its final year. The company has set ambitious financial targets: consolidated net sales of 70 billion yen, operating profit and ordinary profit of 7 billion yen each, and net income attributable to parent company shareholders of 5 billion yen. As key performance indicators, Tomoe emphasizes ordinary profit, which reflects business profitability, and ROE, which indicates management efficiency. Rather than pursuing sales growth alone, the company aims to develop high-value-added businesses.

In its machinery manufacturing and sales business, Tomoe is executing a strategy built on three pillars. The first pillar focuses on promoting centrifuge sales in overseas markets, including establishing a local subsidiary in India, deepening presence in the Americas, and building a sales network in Southeast Asia. The second pillar concentrates on expanding sales of binary power generation systems for industrial waste heat recovery. The third pillar involves expanding its product lineup to reduce environmental impact. On the production side, the company is constructing a new factory to increase production capacity and strengthen its research and development capabilities, targeting consolidated net sales of 20 billion yen and operating profit of 2.8 billion yen by October 2028.

In its chemical products sales business, Tomoe leverages its strengths as a specialty trading company to expand products with gross profit exceeding 100 million yen. In Southeast Asia, the company is strengthening coordination among regional offices. In Europe, it is expanding sales of materials for power semiconductors based in the Czech Republic. In India, it is conducting market research for high-value-added products alongside materials for refractories. Through new product development, Tomoe aims to expand its business domains and allocate management resources prioritarily to high-profit operations based on portfolio analysis. The company targets consolidated net sales of 50 billion yen and operating profit of 4.2 billion yen by October 2028.

Tomoe positions strengthened human resource development to support globalization as a critical initiative underpinning these strategies. By promoting new product development, the company seeks to expand into new business areas and diversify its revenue base, thereby achieving sustainable growth and improved profitability in both business segments. In particular, Tomoe pursues sustainable growth by providing products and services that address social challenges such as reducing environmental impact and effectively utilizing waste heat.