Oki Electric Industry Company, Limited (6703) Stock Price

Market cap
¥305.3B
P/E ratio
16x
OKI Electric Industry provides technology solutions across four key areas: public infrastructure systems, enterprise equipment like ATMs and terminals, communication devices and IoT products, and electronics manufacturing services for other companies.

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Business Overview

Oki Electric Industry (OKI) operates four main business segments.

1. **Public Solutions**

This segment manufactures and sells road systems, aviation systems, fire and disaster prevention systems, government systems, defense-related systems, and aviation equipment. It also provides system integration and solutions for telecommunications carriers.

2. **Enterprise Solutions**

This segment manufactures and sells ATMs, cash handling machines, retail terminals, reservation ticketing terminals, check-in terminals, and currency exchange machines. It also provides installation and maintenance services, ATM monitoring and operation services, financial institution systems, centralized back-office systems, and reservation ticketing systems.

3. **Component Products**

This segment manufactures and sells edge devices (IoT), sensor networks, PBX systems, business phones, contact center solutions, cloud services, and LED printers. These offerings support enterprise communications and information management.

4. **EMS (Electronics Manufacturing Services)**

This segment provides design and manufacturing outsourcing services, printed circuit boards, cables and wires, and engineering solutions. It supports other companies' product development and manufacturing.

**Other**

This category primarily provides facility services and pursues activities aimed at creating future business opportunities, exploring new business prospects.

Management Policy

Oki Electric Industry (OKI) has announced "Medium-Term Management Plan 2025" as its growth strategy. The fundamental policy is to "shift toward growth and break away from managed decline." Specifically, the company aims to recover to fiscal 2019 performance levels and rebuild its damaged financial foundation. Looking ahead to fiscal 2026 and beyond, OKI has set targets of 450 billion yen in revenue, 18 billion yen in operating profit, and a 30% equity ratio.

OKI is focusing on Public Solutions and EMS as growth businesses. In Public Solutions, the company is strengthening its response to the fire, disaster prevention, and road markets, while expanding products for carriers. In EMS, amid semiconductor market weakness, OKI is prioritizing recovery of profitability and reviewing strategy for the next medium-term plan.

Stable businesses include Enterprise Solutions and Component Products. In Enterprise Solutions, OKI is pursuing replacement demand in the domestic financial market and expanding business in Vietnam. In Component Products, the company is advancing structural reform through business integration to achieve stable profitability over the medium to long term.

To create future businesses, OKI is preparing for mass production of photonics and power semiconductors. The company is also conducting open innovation activities from its Silicon Valley base, aiming to address social challenges in the Global South region. Through these efforts, OKI is accelerating collaboration with startups and exploring new business opportunities.

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