Precision System Science Co., Ltd. (7707) Stock Price

Precision System Science Co., Ltd. develops, manufactures, and sells laboratory automation equipment for the life sciences field, genetic testing instruments for clinical diagnostics, and consumables such as reagents and reaction vessels used with these devices. The company supports customers' testing operations through solutions that combine its core nucleic acid automatic extraction equipment with reagents and consumables.

Key customers include universities, research institutions, clinical testing centers, pharmaceutical companies, and chemical manufacturers, with the company operating on a global basis. The company secures revenue primarily through ODM (original design manufacturing) partnerships with industry leaders, direct sales through domestic and European offices, and sales of consumables and maintenance parts.

The business is divided into four segments: equipment, reagents and consumables, maintenance-related services, and contract manufacturing and testing. The company combines a production system through manufacturing subsidiaries with sales and service support through its European subsidiary, conducting integrated operations from product supply and after-sales service to contract manufacturing and testing for external customers.

The company aims to return to profitability in the near to medium term and achieve steady growth. After peaking at 770 million yen in operating profit in the 36th fiscal period, performance deteriorated, and the company posted a net loss in the 39th fiscal period. To address this, the company has set a target to increase annual sales by 250 to 600 million yen each year over the three-year period from 2025 to 2027, with a plan to achieve consolidated operating profit of approximately 400 million yen by the end of June 2027. For its core businesses—automated equipment and reagents/consumables—the company targets year-over-year growth of 8% or more (CAGR) based on the June 2024 fiscal period as a baseline, while simultaneously improving profitability through a gross profit margin of 35% and an operating profit margin of 5% or higher.

The company positions "integrated inspection solutions" combining equipment and consumables as its key differentiator. Beyond its flagship nucleic acid automated extraction equipment, the company is prioritizing quality improvements and stable supply of consumables, reaction vessels, and various reagents. It is reducing costs through refined planning from order to production to shipment and by improving the utilization rate of the Odate Reagent Center. The company also aims to expand its customer base and generate ongoing revenue from maintenance and consumables through original design manufacturing (ODM) for partner brands and by leveraging its existing sales networks in Europe and North America.

The company is also pursuing new market development and business expansion. Beyond existing customers such as universities, research institutions, clinical testing centers, and pharmaceutical companies, it is increasing the proportion of overseas revenue by strengthening direct sales through European and North American operations and through partnerships with major corporations. The company positions reagents and maintenance services—which generate continuous revenue after equipment installation—as a growth pillar. Additionally, the company plans to increase factory utilization rates through expanded contract manufacturing and testing services, thereby stabilizing sales and improving cash flow.

The company views technological innovation as the source of growth and aims to accelerate research, development, and product commercialization. It concentrates management resources on clearly defined development objectives aligned with customer needs and executes rapid market entry of high-value-added products by ensuring design quality and on-time delivery. Furthermore, the company is improving production efficiency at the reagent center through quality assurance and production process improvements. It is also advancing problem-solving in both technology and management through advice from external experts and the appointment of outside directors, thereby strengthening sustained competitive advantage.