DAIKO TSUSAN CO.,LTD. (7673) Stock Price

Daiko Tsussan is a specialized trading company that procures and sells cables, materials, and telecommunications equipment for CATV and information communications, while providing technical information and proposals related to network construction. The company sources high-quality, competitively priced products from domestic and international manufacturers and delivers solutions tailored to customers' implementation needs.

Its primary customers include telecommunications contractors, telecommunications carriers, electric power companies, and government agencies. The company handles a wide range of orders, from routine maintenance and parts replacement to large-scale projects such as network capacity expansion. Daiko Tsussan maintains approximately 450 suppliers and 2,700 customers, with revenue generated from both steady recurring orders and special project work.

The company's product portfolio spans three main categories—cables, materials, and equipment—used across diverse applications including subscriber premises equipment, data centers, outdoor trunk lines, base stations, and power facilities. With approximately 43,000 products in inventory, Daiko Tsussan relies heavily on direct shipments from suppliers while leveraging its logistics centers and 13 nationwide locations organized into four regional blocks to ensure rapid supply and cost management.

The company aims for stable growth and maximization of corporate value. Specifically, it expands sales through two channels—routine orders and special projects—leveraging a foundation of approximately 450 suppliers, approximately 2,700 customers, and approximately 43,000 products. In performance management, gross profit margin is the most critical metric. The company has identified increasing "mid-market" customers with sales between 100 million and 10 billion yen as a key growth priority, and plans to expand its customer base by opening sales offices in regions with low market share, such as the eastern Japan block, and strengthening locally-focused sales activities.

The company aims to differentiate itself in priority investment sectors. It focuses on areas with growing market demand, including FTTH (fiber-to-the-home broadband infrastructure), large-capacity video transmission infrastructure, and digitalization of disaster prevention radio systems. The company is securing stable product supply routes from domestic and international sources and strengthening relationships with suppliers. By leveraging its extensive product range, the company plans to differentiate itself through proprietary products designed in-house and manufactured by third parties, as well as bulk purchasing at concentrated volumes, thereby securing cost advantages over competitors.

The company aims to develop new markets and expand its business scope. Beyond its traditional CATV and information communications sectors, it is entering new areas including construction, civil engineering, and medical equipment, with plans to enhance its ability to provide comprehensive one-stop proposals. For logistics, the company operates four distribution centers—three near its headquarters in Ehime and one within its Tokyo office—and manages 13 nationwide locations across four regional blocks. It positions the Tokyo Distribution Center as the hub for eastern Japan to accelerate supply speed and expand its sales base. The company will maintain a stable transaction foundation through rigorous credit and receivables management, and personnel development centered on on-the-job training.

The company aims to strengthen its commitment to technological innovation. To provide advanced technical information on network construction and field-responsive proposals, it enhances information gathering through suppliers and employee training. Furthermore, to respond to industry changes such as the convergence of television and telecommunications, the company plans to strengthen proposal-based sales capabilities and planning expertise, advancing comprehensive solution provision that considers customers' design, construction, and maintenance needs, thereby maintaining and improving technological advantages.