ALTECH CO., LTD.【JP:9972】Stock Price

**Artech Business Overview**

Artech is a specialty trading company operating two core businesses: importing and selling industrial machinery and equipment, and manufacturing preforms (intermediate materials) for plastic bottles. The company operates as a group with 12 subsidiaries, providing equipment to manufacturers and producing beverage containers across a wide range of industries. Its business foundation is built primarily on importing and selling printing machinery, food processing equipment, and plastic molding machines, as well as producing preforms essential for plastic bottle manufacturing.

In its trading business, key customers include packaging and printing companies, food, cosmetics, and pharmaceutical manufacturers, plastic processors, and electronic equipment manufacturers. The preform business supplies beverage makers and container manufacturers, serving as a stable revenue source. The company's revenue structure is characterized by a combination of machinery sales from the trading business and recurring manufacturing revenue from the preform business.

The trading business handles diverse products ranging from printing-related machinery to cutting-edge 3D printers, with international expansion underway through subsidiaries in the Asia-Pacific region. The preform business operates manufacturing facilities in Suzhou, Guangzhou, Chongqing, and Wuhan in China, in addition to domestic operations in Japan, establishing a production and supply system for the Asian market. Both businesses require high technical expertise, with engineering services and maintenance services for customers serving as important revenue sources.

Artech is implementing its medium-term management plan for 2026-2028 as it marks its 50th anniversary and transforms into "New Artech." The company has set targets of achieving 20 billion yen in sales, an operating profit margin of 3% or higher, and a return on equity of 5% or higher by November 2028. Under the basic policy of "thorough business structure reform," the company aims for sustainable growth by completing business restructuring and organizational strengthening as the foundation for long-term value creation.

The company's priority investment areas focus on pursuing and expanding added value by leveraging the advanced expertise developed over 50 years. In its trading business, Artech is prioritizing TPET, a recyclable heat-resistant plastic container, as a new business area to reduce environmental impact. It is also expanding sales of large-scale equipment such as mineral water production systems and food processing machinery, as well as automated warehouse systems to address labor shortages. Additionally, the company is developing new business models utilizing RFID tags for vehicle tire logistics management and maintenance efficiency improvements.

In the preform business, Artech is withdrawing from its unprofitable recycled flake operations in China to achieve early profitability, while improving earnings in China through revised transaction terms for edible oil caps. Domestically, the company is deepening relationships with existing customers and acquiring new customers by focusing on reducing procurement costs and improving quality of recycled flakes and pellets. Artech is also strengthening collaboration within and across business divisions to create synergies across the entire group.

Regarding technological innovation, Artech is consolidating 50 years of accumulated expertise and knowledge as "ALL Artech" while promoting optimal organizational structures and systems. To realize human capital management, the company is working on optimal personnel allocation and career development planning, as well as corporate culture transformation. Through organizational restructuring across the entire group including subsidiaries and enhanced monitoring, Artech is building a governance framework that balances risk management with agility. Through these initiatives, the company is transforming into a sustainable value-creation enterprise for the next 50 years.