Yashima & Co., Ltd. (7677) Stock Price

Market cap
¥7.5B
P/E ratio
20x
Supplies electrical components and parts to railway operators and manufacturers in Japan and internationally, while also serving industrial machinery and automotive sectors with connectors and electronic components.

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Business Overview

Yashima Kizai operates two main business segments: railway operations and general business. In the railway segment, the company supplies electrical components, body parts, connectors, and electronic components for railway vehicles to railway operators and manufacturers. The company conducts domestic and international operations through transactions with major clients including JR Group companies and CRRC (China Railway Rolling Stock Corporation).

In the railway segment, Yashima Kizai provides a diverse range of products including internal combustion engine parts, electrical equipment, body components, power generation and transformation equipment, and systems. This enables the company to supply a comprehensive range of products necessary for railway vehicle manufacturing and maintenance, establishing a stable supply system. Additionally, through its subsidiary Yashima Logistics Corporation, the company provides efficient logistics services.

In the general business segment, the company sells connectors and electronic components primarily to industrial machinery manufacturers and automotive-related manufacturers. The company also handles maintenance supplies for thermal power plants, harness-processed products, and power supply units, serving a wide range of industrial sectors. The company is also exploring expansion into the road traffic infrastructure industry and working to expand sales of new product lines.

Yashima Kizai prioritizes providing solutions tailored to customer needs and building strong relationships with business partners. Through these efforts, the company aims to expand its product range and transaction scale, pursuing sustainable growth. In particular, the company emphasizes and practices the "3Gen Principle"—focusing on the actual site, actual products, and actual circumstances.

Management Policy

Yashima Kizai has formulated a medium-term management plan for fiscal years 2024 through 2026 and is advancing its growth strategy. The plan's fundamental approach focuses on strengthening the foundation of existing operations and enhancing added value. Specifically, the company aims to reinforce sales in the railway sector and expand its product lineup through the development of new suppliers.

Additionally, the company is advancing new business development for the next generation by identifying high-growth sectors and realigning personnel allocation. In particular, it is focusing on expanding its business scope in the railway sector, emphasizing the provision of high-value-added services and the creation of new business models.

Furthermore, the company is working to improve profitability in the general segment through optimal allocation of human resources and development of new sales channels. Through these efforts, the company is building a structure that enhances operational efficiency and productivity while securing profitability commensurate with invested resources.

Yashima Kizai is also actively pursuing global market expansion through participation in ODA railway infrastructure development projects. The company is strengthening partnerships with overseas partners and expanding its market reach while implementing risk management.

The company is also addressing long-term social challenges and strengthening growth capacity through investment in human capital. It is advancing the provision of environmentally conscious products and services while pursuing sustainable growth. These initiatives enhance the growth capacity of the Yashima Kizai Group.

Finally, the company is strengthening collaboration across the group and working to restore and improve trust. Through enhanced corporate governance and thorough compliance, the company prioritizes maintaining transparency and fairness in business activities and fulfilling social responsibility.

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