TOYO KNIFE CO., LTD. (E01376) Stock Price

**About Toyo Hamono's Business**

Toyo Hamono is a company whose primary business is the manufacturing and sales of industrial blades and machinery components. The company specializes in precision cutting tools and mechanical parts for manufacturers, providing products tailored for industrial applications. Through its subsidiaries, the company also operates a landscaping and greening business, maintaining a diversified business portfolio.

The company's core business of industrial blades and machinery components centers on precision parts and cutting tools used in manufacturing production processes, supplying a wide range of industrial customers. Revenue is primarily generated through product manufacturing and sales. The company has built a stable revenue base by leveraging its technical expertise to deliver high-quality products.

The company group's business is organized into two segments: "Industrial Blades and Machinery Components" and "Landscaping and Greening." In the industrial blades and machinery components business, Toyo Hamono and its consolidated subsidiary Toha Corporation handle manufacturing and sales, with partial operations also underway at Hangzhou Toyo Precision Tools Co., Ltd. in China. The landscaping and greening business is managed by consolidated subsidiary Toyo Ryokuka Corporation, supporting the company's business diversification strategy.

Toyo Kanamono is positioning its 12th Medium-Term Management Plan (April 2020–March 2023) as a growth foundation ahead of its 100th anniversary in 2025. The company has set targets for the fiscal year ending March 2023 of consolidated net sales of 5.31 billion yen, operating profit of 279 million yen (profit margin of 5.3%), and ordinary profit of 260 million yen. The company is also advancing its business operations with a return on assets (ROA) of 5.0% or higher as a key performance indicator, reflecting its focus on efficient asset management.

The company's differentiation strategy centers on reviewing its business portfolio with emphasis on profitability and market potential. It has designated blades for information technology, blades for paper and pulp production, and precision components as priority product categories. In particular, it is focusing on expanding high-precision products aligned with market growth in IT-related blades and components as its most critical strategic product line. On the production side, the company is strengthening efforts to build a production system that controls appropriate quantities at each process stage, balancing on-time delivery with improved productivity.

For international expansion, the company established a subsidiary, Hangzhou Toyo Precision Tools Co., Ltd., in Hangzhou, China in July 2021 and began partial operations in April 2022. Leveraging synergies with Fellowtech Holdings Inc., the company aims to enhance corporate value through business expansion and strengthened production capacity in the Chinese market. The company is also focusing on environmental initiatives, including CO2 reduction through greening projects, as a new growth area.

In technological innovation, the company is advancing the application of metal additive manufacturing technology—a key research and development theme—to large-scale products. It is making active capital investments toward commercializing this technology and combining it with its core precision machining expertise and innovation capabilities to develop next-generation products and accelerate market entry. The company is also prioritizing sustainable technology development through participation in industry-academia co-creation programs and initiatives aligned with the SDGs.