Shinko Shoji Co.,Ltd. (8141) Stock Price

Shinko Shoji is primarily engaged in the sales and import/export of electronic components, assembly products, and electronic equipment. The company operates through 13 subsidiaries and 1 affiliated company. Its business is divided into three segments, each providing different products and services.

The first segment is "Electronic Components Business." This segment handles microcontrollers, system LSIs, memory, semiconductors, capacitors, ferrite cores, liquid crystal displays, and general electronic components. These products are distributed by Shinko Shoji and its affiliated companies, including SHINKO (PTE) LTD. and NOVALUX HONG KONG ELECTRONICS LIMITED.

The second segment is "Assembly Business." This segment manufactures and sells assembly products. Shinko Shoji and NOVALUX HONG KONG ELECTRONICS LIMITED operate this business. Assembly products provide components necessary for electronic equipment assembly.

The third segment is "Other Business." This segment engages in workstations, servers, computer peripherals, custom software development for microcomputers, and software development. Shinko Shoji, Novalux Japan Inc., and Shinko Shoji LSI Design Center Inc. operate these businesses.

Shinko Shoji's non-consolidated subsidiaries include Rakuho Luo (Shenzhen) Trading Co., Ltd. and NOVALUX (MALAYSIA) SDN BHD. These companies handle sales of electronic components and equipment, as well as warehouse management. Additionally, AIRUCA Inc. serves as an affiliated company, developing and maintaining AI software and edge AI devices.

Shinko Shoji is committed to contributing to the realization of a sustainable society as its core management philosophy. The company aims to enhance corporate value by responding swiftly and appropriately to diversifying business challenges. In particular, it continues to evolve by providing electronics materials and services to strengthen its value proposition as an electronic components trading company.

The company has formulated a medium-term management plan covering the three-year period from 2026 to 2028. Under this plan, the company targets net sales of 17 billion yen, net income of 4.5 billion yen, and ROE of 8.0% or higher. These targets aim to achieve sustained growth and improved profitability.

As part of its growth strategy, Shinko Shoji is restructuring its business portfolio. Through co-creation with strategic partner companies, the company seeks to develop and expand new core product lines while growing its existing high-quality supplier materials. The company is also actively pursuing growth investments and M&A to develop new business areas.

Additionally, the company prioritizes investment in human capital. It is enhancing employee engagement through diverse talent recruitment and training investments. The company is also advancing environmental initiatives toward achieving carbon neutrality by 2050.

Regarding shareholder returns, the company targets a consolidated dividend payout ratio of 50%, balancing stable dividends with investments in growth strategies. For share buybacks, the company will implement them flexibly, taking into comprehensive consideration market conditions and financial position.