TAKAOKA TOKO CO., LTD. (6617) Stock Price

Market cap
¥81.9B
P/E ratio
15.5x
Toko Takaoka manufactures power equipment, meters, energy solutions, and optical inspection systems, primarily serving Tokyo Electric Power Grid Company and other utilities.

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Business Overview

Toko Takaoka operates multiple business segments and provides a diverse range of products and services. The main business segments include "Power Equipment," "Metering," "GX Solutions," and "Optical Inspection Equipment." Through these businesses, the company engages in product manufacturing and sales as well as contract work.

In the Power Equipment segment, the company manufactures and sells receiving/distribution equipment, monitoring and control systems, and control devices. The company also handles installation work for these devices. Tokyo Electric Power Grid Company is a major customer.

In the Metering segment, the company manufactures and sells various meters and undertakes meter replacement work. Tokyo Electric Power Grid Company is also a major customer for this segment. Related companies include Watt Line Service and Toko Toshiba Meter Systems.

In the GX Solutions segment, the company manufactures and sells energy measurement and control equipment, fast chargers for electric vehicles, embedded software, and thin-client systems. The company also operates smart grid and PPP/PFI businesses.

In the Optical Inspection Equipment segment, the company manufactures and sells three-dimensional inspection systems. This segment specializes in the development and sales of inspection equipment utilizing optical technology.

As other operations, Toko Takaoka engages in real estate rental business, including rental office buildings. This provides a stable revenue stream.

Management Policy

Tokohdenshin aims to create new value through technological advancement and innovation, contributing to the resolution of social issues. As a company supporting safe, secure, and comfortable living, the company is advancing initiatives toward realizing a sustainable society.

Following past compliance issues, the company has undertaken thorough root cause analysis and implemented preventive measures. In 2024, it formulated the "SQC First Reform," targeting corporate transformation that prioritizes safety, quality, and compliance above all else.

The 2027 Medium-Term Management Plan is based on four pillars: SQC First Reform, regeneration and strengthening of core businesses, reconstruction of growth strategy, and reinforcement of management foundations. The company is concentrating resources on rebuilding the power equipment and metering business, smart meter-related operations, and EV infrastructure initiatives.

Tokohdenshin has established the "Tokohdenshin Group Management Philosophy." Through this framework, all employees are working together toward regeneration and growth while fostering a new corporate culture. The new philosophy comprises purpose, vision, and core values and beliefs.

The company is advancing management with awareness of capital costs and stock price performance. Specifically, it is pursuing improved ROE through kaizen and digital transformation initiatives, as well as revenue structure reform. The company is also enhancing market valuation through sustainability-focused management and strengthened investor relations activities.

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