EIWA CORPORATION (9857) Stock Price

Market cap
¥17B
P/E ratio
8.5x
Eiwa Corporation manufactures and sells industrial measurement, control, and analysis equipment through direct sales and wholesale channels across Japan, China, and Taiwan.

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Business Overview

Eiwa Corporation manufactures and sells industrial measurement and control equipment, environmental measurement and analysis equipment, measuring and inspection equipment, and industrial machinery. These products are sold both directly to end customers and through wholesale channels.

Futaba Tech Corporation, a subsidiary of Eiwa Corporation, manufactures industrial measurement and control equipment and industrial machinery, primarily for sale through Eiwa Corporation. This structure ensures product quality and stable supply.

Tobu Equipment Corporation handles sales of industrial measurement and control equipment and industrial automation equipment in the Tohoku region. The company also provides engineering services and designs and constructs electrical and instrumentation systems.

Eiwa Shuanghe Instrument Trading (Shanghai) Co., Ltd. serves the Chinese market, while Taiwan Eiwa Electronics Co., Ltd. serves the Taiwan market, selling industrial measurement and control equipment, environmental measurement and analysis equipment, and industrial machinery. These operations strengthen the group's presence in Asian markets.

The Eiwa Corporation Group operates as a single business segment due to the similar nature of its products and sales markets. Accordingly, the company does not disclose segment information by business type.

Management Policy

Eiwa Corporation manufactures and sells industrial measurement and control equipment, environmental measurement and analysis equipment, and industrial machinery. To address social challenges such as declining birth rates, aging populations, and climate change, the company aims to improve productivity by leveraging IoT, generative AI, and digital transformation (DX). The company is also focusing on developing materials that reduce environmental impact.

Eiwa Corporation is executing a medium-term management plan with the final fiscal year ending March 2026, which was extended by one year due to performance exceeding projections in the fiscal year ending March 2025. The company now targets consolidated net sales of 50 billion yen, ordinary profit of 3.06 billion yen, and ROE of 11% or higher by the fiscal year ending March 2027.

Key strategic priorities include automating production equipment and implementing predictive maintenance through DX, advancing carbon neutrality and circular economy initiatives, and expanding sales of machinery related to disaster prevention, mitigation, and national resilience. The company is leveraging its nationwide sales network to pursue consultative sales approaches. In preparation for domestic market contraction, the company is also focusing on expanding exports and imports and developing global talent. Additionally, the company is considering mergers and acquisitions and strategic partnerships to strengthen initiatives in growth sectors.

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