Oki Electric Cable Co.,Ltd. (E01343) Stock Price

Oki Electric Wire is a wire and cable manufacturer whose core business is the manufacturing and sales of electric wires, cables, and electrode wires. The company handles everything from development to manufacturing of various wire products used in industrial equipment and telecommunications equipment, and specializes in products for specialized applications leveraging its advanced technical capabilities. Additionally, rental income from owned real estate properties contributes to overall revenues.

The company's major customers include related company Oki Electric Industry and other electronics equipment manufacturers and industrial machinery makers. Revenue from product sales forms the core of the business. In addition to domestic manufacturing facilities, the company operates sales networks in China and the United States to meet global customer needs.

The business is divided into three main segments. In the wire and cable business, the company has established a manufacturing and sales structure in collaboration with subsidiaries Oki Electric Wire Harness and Mogami Electric Wire. The electrode wire business is a specialized field handled solely by the company, while the real estate rental business is positioned as a stable revenue source. For international expansion, the company pursues business growth in Asian and North American markets through a manufacturing subsidiary in China and a sales company in the United States.

Oki Electric Wire is advancing its medium-term management plan "Reborn120," which aims to secure stable earnings as a niche-leading wire manufacturer. The company has set a sales target of 12 billion yen for fiscal 2017, with an operating profit margin of 5%. This lower margin reflects aggressive investment in research and development and overseas expansion to support future growth. In fiscal 2016, the company achieved sales of 11.17 billion yen and an operating profit margin of 6.8%, already exceeding profit targets.

In the wire and cable business, the company is focusing on the FA (factory automation) market and medical device market, which are expected to grow due to advances in automation and robotics. Oki Electric Wire is expanding operations in these growth sectors through accelerated new product launches driven by strengthened research and development capabilities and improved production capacity. In the electrode wire business, the company aims to increase domestic sales through timely responses to customer needs, while leveraging its high-quality product strengths to expand market share among existing overseas customers.

International expansion focuses on three key markets: China, the United States, and Europe. In China, the company is simultaneously pursuing new customer acquisition and deepening relationships with existing customers. In the United States, it is strengthening sales activities through "OKI ELECTRIC CABLE AMERICA CORPORATION," a local sales subsidiary established in 2016. In Europe, the company plans to efficiently develop the market through its distributor network.

In technology innovation, the company is concentrating on creating niche-leading products that strengthen customer focus and gain recognition in overseas markets. Accelerating new product launches and developing new markets are key priorities. The company aims to improve profitability across business segments through cost reduction via further improvements in quality and productivity. These initiatives support a strategy to strengthen competitiveness in global markets and achieve sustainable growth.