SENSHU ELECTRIC CO.,LTD. (9824) Stock Price

Senzu Electric is a specialized trading company in the electrical wire and cable sector. The company's core business is the sales of various types of electrical wires, including equipment wires, communication wires, power cables, and general-purpose insulated wires. It also handles a wide range of electrical installation materials related to these products. Additionally, the company sells information-related equipment and provides comprehensive solutions for electrical and telecommunications infrastructure.

The Senzu Electric Group serves customers through a sales network spanning Japan and overseas. The group consists of the parent company and 14 consolidated subsidiaries (7 domestic and 7 overseas), enabling business operations across diverse regions. The electrical wire and cable business is the primary revenue driver, and the company operates as a single business segment.

The company specializes in the electrical wire and cable sector, leveraging its expertise in this field. Its product portfolio ranges from industrial applications to telecommunications infrastructure, offering diverse product lines to meet varied customer needs. A key characteristic is the company's ability to provide detailed, region-specific services through coordination with domestic and overseas group companies.

Izumi Dengyō has set ambitious targets in its medium-term management plan through October 2027, aiming for consolidated net sales of 160 billion yen and ordinary profit of 13 billion yen. The company is pursuing a 100-year vision and has established clear shareholder return metrics to ensure long-term revenue stability and sustainable growth: ROE of 15% or higher, dividend payout ratio of 35% or higher, and total shareholder return ratio of 50% or higher. These numerical targets reflect the company's strategy to solidify its position as a technology trading company and further strengthen its standing as a leading company in the wire and cable industry.

The company's priority investment strategy focuses on differentiation as a technology trading company. It is advancing joint development of original products with manufacturers and strengthening its processing division to build a system that responds precisely to customer needs. By increasing the sales composition ratio of FA cables for industrial machinery—where demand is expected to grow over the medium to long term—the company aims to improve profit margins. Through expanded sales and logistics capabilities at each business location, it is enhancing its just-in-time system to deliver products quickly and reliably.

For new market development, the company has prioritized strengthening sales in the Kanto and Tokyo regions, which account for one-third of national wire and cable demand, while actively pursuing market share expansion in other areas. In international expansion, it is working to expand distribution channels through strengthened coordination with 14 overseas consolidated subsidiaries and aims to increase revenue in global markets. The company is also actively developing new products in non-wire fields and exploring new business areas, expanding proprietary brand sales to build a stable revenue base less dependent on copper price fluctuations.

In technological innovation, the company is focusing on creating new businesses that address social challenges and improving corporate value through ESG management and SDGs contributions. It is advancing structural reforms in procurement and logistics, human resources, product development, and digital transformation, implementing continuous cost reduction to strengthen profit structure and competitiveness. The company is steadily progressing toward carbon neutrality through renewable energy utilization and active adoption of new technologies, actively addressing climate change issues for a decarbonized society.