SANSO ELECTRIC CO.,LTD. (6518) Stock Price

Market cap
¥5.9B
P/E ratio
12.2x
Sanso Electric manufactures and sells motors, pumps, and related components through a group of five companies including subsidiaries in Japan and Shanghai.

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Business Overview

Sanso Electric Co., Ltd. is primarily engaged in the manufacturing and sales of motors, pumps, and their application products and components. The company also provides maintenance, research and development, and other related services. The Sanso Electric Group consists of Sanso Electric Co., Ltd. and four subsidiaries.

Okayama Sanso Electric Co., Ltd. primarily performs assembly processing and component machining of Sanso Electric products, with some products also sold to other companies. Shanghai Sanso Electric Co., Ltd. procures components and production equipment from Sanso Electric and manufactures and sells motors and pumps. A portion of these products is purchased by Sanso Electric and sold to customers in Japan and overseas.

Sansho Seiko Co., Ltd. performs precision machining of components used in Sanso Electric products, with the majority sold to Sanso Electric and some sold to other companies. Shingu Sanso Electric Co., Ltd. performs press and cutting operations on components used in motors and pumps, and also manufactures motor stators. The majority of these products are sold to Sanso Electric, with some sold to other companies.

Management Policy

Sanso Electric Co., Ltd. operates under the management philosophy of "Love, Gratitude, and Proactivity," aiming to contribute to social prosperity and environmental conservation. The company leverages its strengths in "technology-driven proposals" and "customer-oriented" approaches to build a trusted enterprise. This commitment to earning trust from shareholders, business partners, and local communities forms the foundation of its basic policy.

The company's growth strategy focuses on long-term development through expanded sales of environmentally compatible products. It is strengthening product development to address low power consumption needs for motors and pumps, while expanding business through their applied products. The company is also transitioning toward a higher-margin business structure.

Sanso Electric prioritizes operating profit margin on sales and promotes the development and sales of high-value-added products. This approach aims to improve operating profit margin on sales, a key indicator of corporate profitability. This metric serves as an important indicator for assessing the achievement of the company's management objectives.

Even in a challenging business environment, the company advances product development responsive to customer needs and strengthens its supply systems. Specifically, it develops new products incorporating added functions for motors and pumps, while enhancing marketing efforts in global markets to expand market share.

Furthermore, Sanso Electric pursues total cost reduction and improved customer satisfaction through production facility optimization and implementation of new production management systems. The company also establishes manufacturing technology standards and secures stable raw material procurement to advance quality improvement and environmental conservation.

The company prepares production systems to address raw material price pressures and geopolitical risks, while positioning itself for semiconductor market recovery. It focuses on expanding the unit product market, working to develop new customers and deliver high levels of customer satisfaction.

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