KANEMATSU ELECTRONICS LTD. (E03126) Stock Price

Kanemitsu Electronics is a comprehensive provider of IT-based enterprise system solutions. The company supports all aspects of corporate information systems on a one-stop basis, from the design and construction of information systems to operational services and system consulting. It also handles the sales, leasing, and maintenance services of system products and software.

The company's revenue structure is built on a combination of system product sales to corporate customers and ongoing operational and maintenance services. In addition to product procurement from its parent company Kanemitsu Corporation, the company is expanding internationally through subsidiaries in China and Thailand, pursuing business growth in the Asia region. The company also operates a personnel dispatch business, building a diversified revenue base.

The company's business is divided into two segments: "Systems Business" and "Service and Support Business." The Systems Business handles information system design and construction, consulting, and product sales and leasing, while the Service and Support Business provides maintenance services and system-related education and consulting services. The company is characterized by its comprehensive support structure for customers through collaboration among group companies.

Kanematsu Electronics has established clear numerical targets in its three-year medium-term management plan, with the fiscal year ending March 2023 as the first year. The company aims to achieve operating profit of 13.5 billion yen and a return on equity of 12% or higher by the fiscal year ending March 2025. While prioritizing business expansion and profit improvement, the company pursues balanced management combining profitability and stability through investments in sustainable growth. Regarding shareholder returns, the company's basic policy is to maintain stable dividends consistently, with a target dividend payout ratio of 50% or higher.

In priority investment areas, the company focuses on developing industry and business-type specialized solutions as a strategic partner supporting customers' digital transformation. Through providing platforms with optimized services, the company is transitioning from one-time system provision to a continuous value creation model. The company actively promotes alliance strategies including capital and business partnerships to co-create added value and develop new business domains. The company anticipates approximately 10 billion yen in growth investments over the three-year period, emphasizing strengthening its management foundation through human capital investment and digital investment.

In new market development, the company advances Green Transformation (GX) initiatives using cutting-edge technology. The company has newly formulated a business portfolio strategy based on the principle of "deepening core businesses and developing new business domains," aiming to build a resilient business structure with high profitability, growth potential, and resilience to environmental changes. Through regular board discussions on strategy, the company continues efforts toward enhancing long-term corporate value and achieving further growth.

In technology innovation, the company positions the promotion of sustainability management as an important pillar. The company advances technology development contributing to social infrastructure, including ICT infrastructure provision to medical institutions, system development for educational institutions, and security enhancement for government agencies. Through technology innovation aligned with four priority themes—including cloud service deployment to reduce environmental impact, digital talent development, and promotion of work style reform—the company strengthens its efforts toward realizing a sustainable society.