Oi Electric Co.,Ltd. (6822) Stock Price

Ohi Electric is primarily engaged in the manufacturing and sales of information and communications equipment, as well as network construction and maintenance services. The group consists of Ohi Electric and five subsidiary companies, each operating as an independent business unit.

In the information and communications equipment manufacturing and sales segment, Ohi Electric manufactures and sells related equipment for optical transmission systems, security and surveillance systems, remote measurement and sensing systems, and wireless application systems. Additionally, Ohi Techno Co., Ltd. manufactures and sells software for related equipment and undertakes contract manufacturing of software used in Ohi Electric products.

In the network construction and maintenance segment, Japan Field Engineering Co., Ltd. and Japan Technical Service Co., Ltd. provide construction and maintenance services for telecommunications facilities, optical networks, and CATV systems. A portion of Japan Field Engineering's operations is outsourced to N.F. Service Co., Ltd.

For other business operations, Ohi Electric outsources facility services such as cleaning and cafeteria operations at its headquarters and manufacturing facilities, as well as a portion of employee welfare services, to Create Ohi Co., Ltd.

Oi Electric pursues sustainable growth by operating primarily in information and communications equipment and network construction and maintenance services. The company is committed to protecting rich natural environments and contributes to society through technological innovation as its core management philosophy. In particular, it provides information and communications equipment and related services for social infrastructure, aiming to enhance corporate value.

The company's growth strategy is based on autonomous management of each group company while leveraging synergies to expand business scale and profitability. In information and communications equipment manufacturing and sales, the company expects to expand related businesses with the introduction of second-generation smart meters beginning in fiscal 2025. It is also advancing entry into smart meter-related businesses for gas and water utilities.

In network construction and maintenance services, following the completion of 5G base station installations, the company is expanding its business centered on communications infrastructure development necessary for disaster prevention and mitigation. It is focusing on acquiring new customers and construction projects involving network equipment sales to expand its business scope and drive profit growth.

In its medium-term management plan (2023-2025), Oi Electric envisions "contributing to society through unique technological capabilities" and aims to establish a growth foundation through distinctive products and services in the information and communications field. In fiscal 2024, the company achieved sales and operating profit results that significantly exceeded plan.

The company is advancing technological sophistication of information and communications technology and enhancing product value-added. It is also promoting solutions utilizing AI and cloud services. To address sustained high manufacturing costs, the company is strengthening procurement resilience and passing increased costs to sales prices. Through these efforts, it is building a stable revenue base and advancing entry into growth sectors.