OPTEX GROUP Company,Limited (6914) Stock Price

Market cap
¥104.9B
P/E ratio
15x
Optex Group develops and manufactures infrared sensors, security systems, automatic door products, and industrial equipment through 42 subsidiaries worldwide.

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Business Overview

Optex Group consists of a holding company, 42 consolidated subsidiaries, and one affiliated company. The group's primary business involves the development, manufacturing, and sales of infrared sensing sensors, security products, automatic door products, industrial equipment products, LED lighting-related products, industrial computer systems, and automated machinery.

Optex Group's business segments are divided into four categories: SS Business, IA Business, EMS Business, and Other. The SS Business develops, manufactures, and sells sensors and systems for security, automatic doors, and social and environmental applications. Key domestic companies include Optex Corporation and Giken Trustem Corporation.

The IA Business develops, manufactures, and sells photoelectric sensor-related equipment for factory automation, image processing LED lighting devices, industrial computer systems, and automated machinery. Major domestic companies include Optex FA Corporation and CCS Corporation.

The EMS Business provides manufacturing services for Optex Group products and contract manufacturing services for electronic equipment. Optex MFG Corporation is the primary domestic company. Overseas, companies such as OPTEX (DONGGUAN) CO., LTD. operate in this segment.

Other business activities include software development and the operation of outdoor activities and environmental learning experiences. Key domestic companies include Three Ace Corporation and Opal Optex Corporation.

Management Policy

Optex Group operates under the corporate philosophy of "becoming an enterprise group filled with venture spirit." The company is committed to innovation and new business creation, aiming to realize a safe, secure, comfortable, and highly efficient society while contributing to the creation of a sustainable future. The company promotes employee self-realization and positions mutual growth between people and the organization as its fundamental policy.

The company has set targets of "ROE of 10% or higher" and "consolidated revenue growth of 10%" to pursue sustainable growth. It is strengthening core business performance and optimizing management resources while nurturing new businesses and expanding business domains. Through continuous innovation, the company aims to expand profits and improve productivity, with a focus on enhancing operating profit margins.

Optex Group faces an uncertain business environment marked by rising raw material costs and global inflation. However, growing demand for products and technologies that support energy efficiency and automation aligns with the global shift toward sustainable society. In response, the company is leveraging sensing and optical technologies to address social challenges.

The company is advancing the expansion of its "solution business" and transitioning from hardware sales to solution-based offerings. This represents a medium- to long-term strategy to address social challenges while maximizing corporate value. The company is strengthening its business model to meet customers' true needs and enhance added value.

The company is reinforcing headquarters functions and strengthening collaboration among group companies to improve profitability and achieve sustainable growth. It is pursuing synergies, expanding business domains, and intensifying efforts in new ventures. Through strategic partnerships and M&A, the company is concentrating investments in growth sectors while improving financial health.

As part of environmental initiatives, the company is implementing greenhouse gas reduction measures and has set a target to reduce CO₂ emissions by 30% by 2030. Based on TCFD recommendations, the company analyzes and discloses climate-related risks and opportunities, fulfilling its social responsibilities.

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