TOKYO KOKI CO. LTD. (7719) Stock Price

Market cap
¥3.6B
P/E ratio
19.4x
Manufactures testing and measurement instruments, provides contract testing services, and develops fastening components like lock nuts through three specialized subsidiaries.

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Business Overview

Tokyo Koki operates three business segments: testing equipment, engineering, and other businesses. These operations are conducted through Tokyo Koki and two subsidiaries.

In the testing equipment business, Tokyo Koki Testing Equipment Co., Ltd. serves as the core company, manufacturing and selling testing and measurement instruments. The company also handles imports and sales of products from overseas sales partners and provides contract testing services. A related company, ZR Tokyo Koki Service Co., Ltd., provides maintenance and servicing for testing equipment.

The engineering business is operated by Tokyo Koki Engineering Co., Ltd. As a fabless manufacturer, the company develops, designs, and sells fastening components such as lock nuts and springs. Manufacturing is outsourced to external partners, while the company retains intellectual property rights.

Management Policy

Tokyo Koki is pursuing a growth strategy centered on its testing equipment business and engineering business. In the testing equipment business, the company is focusing on expanding market share and strengthening its revenue base through product improvements, leveraging its distributor network, and expanding orders for customized products. The company is also expanding its repair, calibration, and maintenance services.

In the engineering business, Tokyo Koki is deepening relationships with existing customers and acquiring new customers while pursuing greater penetration into the infrastructure market. In particular, the company aims to expand sales steadily through joint product development with customers and productivity improvements. Through these efforts, Tokyo Koki is pursuing steady growth.

The medium-term management plan identifies three priority areas: promoting digitalization, investing for sustainable growth, and investing in human capital development. In digitalization, the company aims to integrate hardware and software to evolve its business operations. In investing for sustainable growth, the company is transforming into a high-profit enterprise by providing high-value-added products through advance investments. In human capital development, the company is focusing on cultivating talent that generates high value-added output.

Through these initiatives, Tokyo Koki is working to enhance corporate value and pursue sustainable growth. Additionally, to strengthen its digital business, the company is advancing partnerships with CAE software development companies to create new revenue opportunities.

Tokyo Koki is also strengthening its governance and internal control systems. To achieve delisting from the special attention securities category, the company is improving its internal control systems and working to restore stakeholder confidence. Through these efforts, Tokyo Koki is pursuing sound corporate operations and further growth.

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