TOCALO Co.,Ltd. (3433) Stock Price

Tocalo is a company specializing in thermal spray coating and surface modification processing. Through thermal spray coating, the company applies metal and ceramic materials at high temperatures to industrial machinery components—including parts for semiconductor and flat panel display manufacturing equipment, gas turbines for power generation, energy storage batteries, and various types of bearings—to enhance wear resistance and heat resistance.

Tocalo's domestic subsidiaries include Japan Coating Center Co., Ltd. and Terada Works Co., Ltd. Japan Coating Center performs PVD coating to provide wear resistance to cutting tools and dies. Terada Works manufactures machine tools and precision machinery components.

The company's overseas subsidiaries include Donghua Long (Guangzhou) Surface Modification Technology Co., Ltd. and TOCALO USA, Inc. These subsidiaries conduct surface modification processing centered on thermal spray coating and weld overlay in China and the United States, and operate maintenance services for semiconductor manufacturing equipment components.

In addition, Tocalo provides TD coating, ZAC coating, and PTA coating services. These technologies are used to impart wear resistance and corrosion resistance to automotive dies and pump components. Non-consolidated subsidiaries in Indonesia and Thailand also handle surface modification processing in their respective markets.

Tokaaro is a company specializing in surface treatment processing, centered on thermal spray coating, with a strong emphasis on technological innovation and environmental responsibility. The company aims for "all-weather management" that is resilient to economic cycles, strengthening its financial position through cash flow and balance sheet-focused management. It is also establishing itself as a "problem-solving company" that responds quickly to customer needs and pursuing its vision as a "research and development-driven company" that delivers high-quality coatings.

In its medium-term management plan (fiscal year ending March 2022 through March 2026), Tokaaro has set a vision toward 2030 of "contributing to a prosperous future for people and nature." The company aims to enhance corporate value through ESG-focused growth and deliver high-quality, high-value-added products as its mission. In particular, to address megatrends including environmental challenges, ICT advancement, and resource scarcity, the company is promoting new product development and market expansion.

The company has identified two priority areas for growth strategy: "people" and "environment (nature)." In its "people" initiatives, it targets the semiconductor, medical, and agricultural sectors. In its "environment (nature)" initiatives, it focuses on energy, materials, and transportation. Through these efforts, the company is expanding existing businesses and developing new business areas to achieve sustainable growth.

Tokaaro is working to reduce environmental impact toward achieving carbon neutrality by 2050. It has set a target to reduce greenhouse gas emissions by 46% compared to fiscal year 2013 levels by fiscal year 2030, promoting energy efficiency and recycling. The company is also advancing smart factory transformation through digital transformation to enhance manufacturing sophistication and quality.

The company aims to maintain a strong financial position, targeting a shareholders' equity ratio of approximately 70% and a return on equity of 15%. It also pursues a dividend payout ratio of 50%, maintaining a stable dividend policy. The company continues to invest in capital expenditures and research and development to maintain and strengthen technological advantages. Through these measures, it seeks to enhance corporate value and achieve sustainable growth.