TOTOKU ELECTRIC CO., LTD. (E01337) Stock Price

Tokyo Special Wire is a specialized manufacturer primarily engaged in the manufacturing and sale of electric wires and device products. The company handles a wide range of products, from specialized electric wires used in industrial equipment and electronic devices to various device products. As a subsidiary of Furukawa Electric Co., Ltd., it develops products leveraging advanced technological capabilities.

The company's major customers include its parent company Furukawa Electric Co., Ltd., as well as leading electrical equipment manufacturers and industrial machinery makers. Revenue is primarily generated from the manufacturing and sale of electric wires and device products. The company has established a vertically integrated business model that includes material supply and product procurement among domestic and overseas subsidiaries and affiliated companies. This group-wide efficient production system ensures a stable revenue base.

Business operations span both domestic and international markets. Domestically, the company expands its product lineup through collaboration with subsidiary Tokuden and affiliated company Tokutoku Makisen. For international expansion, the company has established manufacturing bases in Indonesia, China, and the Philippines, enhancing its competitiveness in Asian markets through local manufacturing and sales. These overseas subsidiaries play an important role in the company's growth strategy.

Tokyo Special Wire aims to achieve sales exceeding 22 billion yen, operating profit exceeding 4 billion yen, and an operating profit margin exceeding 18.0% in fiscal year 2025, which is the target year of its medium-term management plan. Under its corporate vision of "realizing a proposal-driven company that specializes in what only we can do and consistently exceeds customer expectations," the company pursues growth as a high-profit enterprise by providing technologies and products that create customer value and contribute to the environment and society. The company plans to maintain a consolidated return on equity continuously exceeding 10.0% and is focusing on building a highly profitable business structure.

The company's differentiation strategy centers on leveraging specialized technologies based on five key functions: high frequency, high heat resistance, high pressure resistance, energy efficiency, and space savings. It has positioned four focus markets—telecommunications infrastructure, mobility, small transformers, and substrate/semiconductor inspection equipment—and is promoting the development and expansion of distinctive products in each field. The company aims to secure market superiority through product lines that maximize its accumulated specialized technologies, including high-pressure-resistant wire for electric vehicles, high-performance coaxial cables for information and communications and industrial equipment markets, and ultra-fine-diameter contact probes for semiconductor package substrate inspection.

Regarding new market development, the company views the expansion of the electric vehicle market driven by global decarbonization trends and the proliferation of 5G telecommunications infrastructure as important growth opportunities. For automotive seat heater wire, the company is expanding business scale through strengthened production systems, and for telecommunications infrastructure, it is expanding sales of high-performance coaxial cables for next-generation 5G communication markets. In overseas expansion, the company is strengthening its business foundation in Asian markets through improved heater product functionality at its Chinese subsidiary and enhanced production efficiency of flexible flat cables at its Philippine and Indonesian subsidiaries.

In technology innovation efforts, while improving development speed, the company is strengthening new product offerings through new feature development in its four focus markets and exploring new markets and customers through new application development. Particularly for three-layer insulated wire, the company is expanding applications to server transformers and vehicle-mounted transformers through new product development that accommodates larger currents. Additionally, the company is continuously working on creating innovative products leveraging its unique specialized technologies, such as developing contact probes that achieve world-leading fine-diameter specifications to accommodate increased integration rates in substrates and semiconductors.