TERASAKI ELECTRIC CO.,LTD. (6637) Stock Price

Market cap
¥50.8B
P/E ratio
12.2x
Manufactures power distribution control systems and low-voltage circuit breakers for ships, buildings, and factories worldwide, with over half of sales from international markets.

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Business Overview

Terasaki Electric Industries operates through 15 subsidiaries both domestically and internationally. Approximately 52% of sales come from overseas markets, with Asia and Europe being the primary regions. The business is organized into three geographic segments: Japan, Asia, and Europe.

Terasaki Electric Industries' main business involves manufacturing and selling power distribution control systems and engine monitoring control systems for ships, buildings, and factories. The company also manufactures and sells electrical equipment such as low-voltage circuit breakers. Related engineering services and lifecycle support services are also provided.

System products are divided into two categories: marine and industrial. Marine products include power distribution control systems and engine monitoring control systems that comply with regulations from various maritime classification societies. Industrial products consist of power distribution control systems used in buildings, factories, and railway facilities.

Low-voltage circuit breakers are the flagship equipment product. These are used in buildings, factories, and ships, and comply with standards such as JIS and IEC. Through these products, Terasaki Electric Industries provides electrical safety and efficiency.

Terasaki Electric Industries' product lineup includes marine power distribution control systems, engine monitoring control systems, combined starter panels, high-voltage distribution panels, shore power supply systems, and onboard data collection equipment. These products play a critical role in supporting ship operations and safety.

Industrial products include power distribution control systems and cogeneration systems. Cogeneration systems combine power generation with waste heat recovery for energy efficiency and can be interconnected with commercial power grids.

Electronic application products include process control systems used in plants for environmental, energy, chemical, and food applications, equipped with monitoring and control functions. The company also provides medical devices, including artificial dialysis equipment and clinical laboratory instruments.

Terasaki Electric Industries' equipment products include low-voltage circuit breakers and multi-conductor penetration systems. Low-voltage circuit breakers are designed for circuit protection and are used in factories, buildings, and ships. Multi-conductor penetration systems are comprehensive fire safety products with waterproof, airtight, and fire-resistant properties.

Management Policy

Terasaki Electric Industrial Co., Ltd. places customer satisfaction at the core of its management philosophy, prioritizing responsiveness to customer needs. The company leverages information and communications technology and computer applications to advance the evolution of electrical energy control, thereby contributing to society and technological progress.

The company targets medium-term expansion through consolidated operating profit margins of 8% or higher and a shareholders' equity ratio of 55% or above. These targets strengthen the company's financial position and enhance corporate value. The company pursues steady revenue growth based on stable management practices.

Terasaki Electric Industrial emphasizes customer satisfaction improvement through strengthened sales activities and enhanced design and production processes. The company promotes new product development reflecting market needs and participation in research and development projects with other organizations. These initiatives aim to maintain and expand market share.

The company seeks to optimize its global organization by improving quality, sales, technology development, and production locations. It strengthens internal control systems and ensures regulatory compliance to fulfill corporate social responsibility and enhance corporate governance.

To address rising raw material costs and currency fluctuations, Terasaki Electric Industrial promotes cost reduction activities and price optimization. The company also minimizes foreign exchange risk through optimized financial management and funding strategies, thereby ensuring management stability.

The company reinforces and restructures production facilities to prepare for geopolitical risks and natural disasters. It strengthens production systems with business continuity planning (BCP) in mind to minimize impacts on business operations and ensure business continuity.

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