SMK Corporation (6798) Stock Price

SMK is a manufacturer and distributor of components for telecommunications and electronic equipment, with 23 subsidiaries and 1 affiliated company both domestically and internationally. SMK's business is primarily divided into the following segments.

1. **CS (Connection Systems) Division**

This segment manufactures and sells coaxial connectors, board-to-board connectors, FPC connectors, and jacks. Key affiliated companies include SMK Electronics Corporation, U.S.A. and SMK Trading (H.K.) Ltd.

2. **SCI (Sensing, Communication & Interface) Division**

This segment handles the manufacture and sale of remote controls, switches, and camera modules. Major affiliated companies include SMK Electronics Corporation, U.S.A. and SMK Electronics (Dongguan) Co., Ltd.

3. **Innovation Center**

The Innovation Center manufactures and sells wireless modules and develops new business opportunities. This segment is primarily managed by SMK headquarters.

4. **Other**

This segment includes real estate rental operations and temporary staffing services. Showa Enterprise Co., Ltd. is noted as a key affiliated company.

Through these diverse business operations, SMK provides a wide range of products and services both domestically and internationally.

SMK's corporate philosophy is to "contribute to the development of the information society through comprehensive advanced technology pursued via the exploration of possibilities." Under its vision of "CREATIVE CONNECTIVITY," the company aims to provide solutions that address societal and customer challenges by maintaining creative and flexible thinking, embracing challenges without fear of failure. The company is also focused on promoting workforce diversity and development to build a sustainable foundation for business operations.

As SMK approaches its 100th anniversary in 2025, it has established a long-term vision for 2035: "to contribute to the next 100 years through manufacturing capabilities that realize all needs." The medium-term management plan "SMK Next100" positions 2025-2027 as a period to "accelerate structural reforms toward sustainable growth," targeting increases in sales and profit. Specific initiatives include resource allocation, cost structure reform, and strengthened integrated sales and manufacturing operations.

SMK implements risk management through business continuity management (BCM) to minimize the impact of natural disasters. The company is also advancing development and design process improvements, including updates to the latest 3D CAD systems and expanded use of 3D printers. Efforts to enhance production efficiency and realize smart factories are underway.

For environmental conservation, SMK has set a target to achieve carbon neutrality by 2045, advancing solar power installation and selection of low-emission electricity options. The company is also promoting the 3Rs (Reduce/Reuse/Recycle) and environmentally conscious product design focused on energy efficiency and improved performance.

As part of CSR activities, SMK has established a corporate philosophy and corporate conduct charter to become a company that contributes to society. The company has revised employee conduct standards to strengthen CSR and compliance. SMK views the enhancement and reinforcement of corporate governance as a critical mechanism for achieving sound and efficient management.

SMK targets sales of 6 billion yen, an operating profit margin of 3.5%, and return on equity (ROE) of 5.0% by 2027. To achieve these goals, the company is strengthening global production efficiency, new product launches, and fixed cost reduction to maximize corporate value.