Tokyo Cosmoc Electric Co., Ltd. (6772) Stock Price

Tokyo Cosmos Denki's primary business is the manufacturing and sales of variable resistors and automotive electrical components. The company operates these product lines through eight consolidated subsidiaries. Variable resistors are manufactured by Shirakawa Cosmos Denki, Nakatsu Cosmos Denki, Aizu Cosmos Denki, and Guangzhou Donggao Zhi Electronics Co., Ltd.

For automotive electrical components, Tokyo Cosmos Denki handles sales while manufacturing is carried out by Shirakawa Cosmos Denki, Nakatsu Cosmos Denki, Yantai Cosmos Denki Co., Ltd., Aizu Cosmos Denki, and Guangzhou Donggao Zhi Electronics Co., Ltd. This structure enables the company to deliver products that balance quality and efficiency.

Other products follow the same model, with Tokyo Cosmos Denki managing sales and Shirakawa Cosmos Denki, Nakatsu Cosmos Denki, and Aizu Cosmos Denki handling manufacturing. This approach allows the company to offer a diverse product lineup that meets varied customer needs.

Additionally, Tokyo Cosmos Denki's products are sold internationally through Taiwan Donggao Zhi Electronics Co., Ltd., TOCOS AMERICA, INC., Yantai Cosmos Denki Trading Co., Ltd., and Guangzhou Donggao Zhi Electronics Co., Ltd. This global distribution network strengthens the company's competitive position in international markets.

Tokyo Cosmos Denki is strengthening its sustainability management and aiming for growth in the electronics industry. The company prioritizes transparent corporate operations and building trust with local communities as core management principles. Through this approach, it seeks to deliver sustainable value to employees, customers, and the global environment.

The company has formulated its Second Medium-Term Management Plan for the three-year period beginning in fiscal year 2024, with growth and advancement as its central themes. The plan focuses on four key initiatives: strengthening technological development capabilities, improving profitability, enhancing financial soundness, and strengthening shareholder returns. These efforts aim to build a solid foundation for the next medium-term management plan.

To strengthen technological development capabilities, the company is exploring new domains through the creation of new technologies and expansion of core technologies. It is allocating management resources to research and development and human resource development to enhance technological competitiveness. This approach supports the development of competitive products.

To improve profitability, the company is increasing product added value and restructuring its production systems. Through digital transformation (DX) and AI utilization, it is improving productivity and achieving efficient manufacturing. These efforts target higher profit margins.

For financial soundness improvement, the company is reducing interest-bearing debt and enhancing capital efficiency. Specifically, it has set ROA improvement as a target, aiming for 9% by the fiscal year ending March 2027. While investing 2 billion yen in capital expenditures and research and development, the company maintains financial health.

For strengthened shareholder returns, the company is improving its dividend on equity (DOE) to achieve stable, medium to long-term shareholder returns. This approach aims to enhance shareholder value and build investor confidence.