TOTECH CORPORATION (9960) Stock Price

Toh-Tek operates two primary business segments: product sales and construction services. In the product sales segment, the company sells air conditioning equipment, control equipment, facility equipment, generators, and related products. These products are provided through subsidiaries including Toh-Tek Hokkaido and Archback.

Toh-Tek also provides maintenance and servicing for the equipment it sells. Subsidiaries such as Nihon Buildcon and Toh-Tek Hokkaido handle inspection and maintenance operations for installed equipment, delivering long-term customer support.

In the construction services segment, the company designs and constructs instrumentation work, piping work, and electrical equipment installations. Subsidiaries including I.B. Technos, Kita Nihon Keisoku, and Quantum Automation manage these construction projects. The company also provides maintenance and inspection services for completed projects.

Additionally, Toh-Tek generates revenue by selling electricity to power companies using solar power generation facilities. This business contributes to achieving a sustainable society through renewable energy utilization, enabling Toh-Tek to pursue diversified business operations.

Toh-Tech is focusing on product sales and construction services as its growth strategy, while strengthening existing operations through contributions to a carbon-neutral society. The company is also building a stable revenue base by expanding its maintenance business and actively pursuing overseas expansion, particularly in Southeast Asia.

Under its medium-term management plan with a final fiscal year of March 2026, the company targets net sales of 160 billion yen and ordinary profit of 15.8 billion yen. Emphasizing operational efficiency and productivity improvements, it aims to achieve ROE of 12% or higher, PBR of 1.0 or higher, and a shareholders' equity ratio of around 50%.

For its long-term vision targeting 2030, Toh-Tech has adopted the theme "Comfort, and Beyond." The company seeks to create comfortable environments by capturing technological innovation and changes in social structures. In its first medium-term management plan, it is advancing four strategies under the theme "Comfort for People": human capital investment, ESG management, core business strengthening, and overseas business expansion.

Regarding profit distribution, the company prioritizes business growth and stable shareholder returns, with a consolidated dividend payout ratio target of 40%. Retained earnings are allocated to strengthening competitiveness and improving profitability, maintaining long-term sound management.

Toh-Tech places emphasis on human capital investment, enhancing education and training programs, and creating a more comfortable work environment. In ESG management, the company is advancing contributions to environmental challenges, building a more comfortable workplace, and strengthening governance structures.

In strengthening core operations, the company aims to expand sales and improve profit structure through sales and construction of equipment centered on air conditioning systems, as well as maintenance and renovation services. For overseas expansion, the company targets growth particularly in Southeast Asia, utilizing M&A to expand its business scale.