NAKAYO, INC. (E01827) Stock Price

Nakayo Corporation (the Company) and its group companies operate primarily in the manufacturing and sales of telecommunications equipment. The Company engages in a wide range of business activities, including the development, manufacturing, sales, and SE support of products related to broadband and wireless systems. Specifically, the Company provides voice terminal equipment and switching systems such as CTI and IP button telephone systems, and also handles maintenance and installation services for these products.

The Nakayo group includes Nakayo Electronics Service Corporation and NYC Solutions Corporation. Nakayo Electronics Service Corporation previously handled sales, maintenance, and installation of the Company's products, but was absorbed and merged into the Company on April 1, 2023. Meanwhile, NYC Solutions Corporation sells NTT products. Additionally, there are two affiliated companies, including NT System Corporation, which also engage in product sales including the Company's products.

In this way, the Nakayo Corporation group provides comprehensive services spanning from manufacturing to sales and support of telecommunications equipment, with particular strength in the broadband and wireless systems sectors. The Company and its group enterprises maintain competitiveness in the telecommunications equipment market by continuing to provide high-quality products and services that respond to technological advances.

Nakayo Corporation has formulated its Fifth Medium-Term Management Plan, with the fiscal year ending March 2022 as the initial year, and is actively working toward its realization. The company's management vision is to "create value through hardware, software, and services, aiming for customer business development and employee well-being." Under this vision, the company has established three core policies: developing products and services that contribute to solving social issues and advancing society, improving management quality through rigorous cost control, and building an environment where employees find joy and fulfillment in their work.

Particularly noteworthy is the company's focus on the "Smart X Business." This business integrates information transmission technology and manufacturing with IT, aiming to establish a new business foundation that leverages the strengths of the Nakayo Group. By allocating management resources strategically to this business, the company is accelerating early business establishment.

As part of its management strategy, Nakayo Corporation is also pursuing further expansion of its business phone-related operations while establishing new business foundations. Through these efforts, the company is positioning itself for sustainable growth and long-term enhancement of corporate value.

Regarding management targets, the company has set performance goals for the fiscal year ending March 2024 at net sales of 20,000 million yen and operating profit of 800 million yen. However, as of May 2023, the outlook projects net sales of 18,600 million yen and operating profit of 430 million yen, indicating challenges remain in achieving the targets.

Nakayo Corporation is earnestly addressing manufacturing that responds to social changes and needs, while advancing the establishment of new business foundations and strengthening management quality under a management philosophy that prioritizes compliance and social responsibility. How these initiatives will contribute to the company's sustainable growth and enhancement of corporate value will be a key point of focus going forward.