INNOTECH CORPORATION (9880) Stock Price

Market cap
¥37.5B
P/E ratio
15.9x
Inotech develops semiconductor test systems, EDA software solutions, and embedded computing products, serving global technology companies through its network of specialized subsidiaries.

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Business Overview

Inotech operates three main business segments. First, in the "Test Solutions Business," the company develops and sells semiconductor test systems, providing high-value solutions particularly for the semiconductor memory market. Its subsidiary STAr Technologies, Inc., based in Taiwan, manufactures and sells reliability evaluation equipment and probe cards, maintaining a global presence with support operations both domestically and internationally.

Second, in the "Semiconductor Design-Related Business," the company provides sales and maintenance services for EDA software manufactured by US-based Cadence. Subsidiary Sanei Hightex handles custom LSI design and development as well as personnel dispatch services, with particular strength in analog design. J.S.C. develops software for the automotive and semiconductor sectors, while Mordec provides simulation model design support utilizing analog modeling technology.

Third, in the "Systems and Services Business," the company develops and sells CPU boards and box-type computers for embedded applications. Subsidiary IT Access handles sales and maintenance of operating systems and browsers for embedded use, while Reglas develops systems leveraging image processing technology. Gaio Technology develops and sells embedded software verification tools, maintaining competitive strength in the automotive control software sector.

Additionally, Inotech formulates and manages overall corporate strategy and conducts management operations. Through US-based Fenox Innotech Venture Company VI, L.P., the company also invests in AI, embedded systems, and web service-related enterprises, advancing its business operations from a global perspective.

Management Policy

Inotech aims to serve diverse customer needs as a total solutions provider with engineering at its foundation. The company's management philosophy is to enrich people's lives through its electronics business and contribute to future society. It also prioritizes leveraging creativity to advance technology and help customers solve problems.

In its medium-term management plan (fiscal years 2024-2026), Inotech targets improved capital efficiency and enhanced corporate value, with a goal of maintaining ROE at 8% or above, ultimately reaching 10%. Specific strategies include improving operating profit margins, optimizing the business portfolio through reallocation of management resources, and enhancing earnings stability.

The company's business strategy is divided into three segments: Test Solutions, Semiconductor Design-Related Services, and Systems & Services. The Test Solutions segment focuses on expanding and optimizing its product portfolio. The Semiconductor Design-Related Services segment aims to expand stable revenue streams. The Systems & Services segment promotes mass customization to deliver added value tailored to customer needs.

Inotech is advancing initiatives toward a sustainable society while adapting to changes in the business environment. In particular, it is pursuing strategic business expansion in anticipation of semiconductor industry growth and prioritizes addressing geopolitical risks. Through these efforts, the company aims to expand its business from a global perspective.

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