MITACHI CO., LTD.
3321・Standard Market・Wholesale Trade
Business
Mitachi Sangyo Co., Ltd. is an independent electronics trading company founded in 1976. Domestically, it conducts Semiconductor & Electronic Components Procurement and Sales as well as Unit Assembly (Assembly Processing) sales, while overseas it operates EMS (Electronics Manufacturing Services) and Electronic Components Sales through seven bases in Asia (Hong Kong, Taiwan, China, Thailand, Indonesia, Malaysia, and the Philippines) and a base in the United States. Its product lineup spans semiconductors such as general-purpose ICs and memory, electronic components such as resistors and connectors, Unit Assembly (Assembly Processing) (EMS), industrial equipment in general, and IoT-related Devices & Software. Its major customers include the Denso Group (59.9% of net sales for FY2025 (ended May 2025)) and a broad range of manufacturers in the automotive, industrial equipment, consumer, and amusement fields. The company has 9 consolidated subsidiaries and operates its business globally.
Business Model
The company's core revenue comes from procurement and sales, sourcing semiconductors and electronic components from suppliers such as Toshiba Device & Storage and selling them to manufacturers across the automotive, industrial equipment, and consumer electronics sectors. In addition, it generates value-added revenue through EMS (Electronics Manufacturing Services), centered on its Philippine subsidiary M.A.TECHNOLOGY, INC. In FY2025 (ending May 2025), gross margin was 5.4% and operating margin was 2.2%, reflecting the low-margin structure typical of trading companies, though revenue scale expanded sharply due to the transfer of large-scale business flow from the Denso Group. The company has established overdraft and commitment line agreements totaling ¥29,102 million with six partner banks, ensuring a framework for flexible working capital procurement.
Company Strengths
Following the transfer of sales distribution channels from Toshiba Device & Storage Corporation to the Denso Group, the company recorded sales of ¥58,849 million to the Denso Group (59.9% of total sales) in FY2025 (ended May 2025). Domestic Business Division sales surged 236.0% year-on-year to ¥82,273 million, and consolidated sales expanded rapidly by 152.4% year-on-year to ¥98,176 million.
In addition to seven locations across Asia in Hong Kong, Taiwan, China, Thailand, Indonesia, Malaysia, and the Philippines, the company has a US subsidiary, MITACHI AMERICA, INC., established in June 2023. Production at the Philippine subsidiary M.A.TECHNOLOGY, INC. reached ¥4,645 million (raw figures in thousands of yen) in FY2025 (ended May 2025), up 153.6% year-on-year, driving growth in the overseas EMS (Electronics Manufacturing Services) business.
ROE for FY2025 (ended May 2025) reached 11.3%, achieving in its first year the target of 10% or higher set for the final year (FY2027, ending May 2027) of the Medium-Term Management Plan 2026. Sales also reached ¥98,176 million against the final target of ¥100,000 million, confirming that the plan's progress is ahead of schedule.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending May 2026), the company achieved increases across all key metrics: net sales of ¥120,327 million (up 22.6% year on year), operating profit of ¥2,763 million (up 28.6% year on year), ordinary profit of ¥3,054 million (up 28.5% year on year), and profit attributable to owners of parent of ¥2,130 million (up 25.5% year on year). External factors contributing to this included expanding demand for semiconductors used in automotive parts and steady performance in the amusement segment. However, for FY2027 (ending May 2027), the company forecasts net sales of ¥110,000 million (down 8.6% year on year) and operating profit of ¥1,800 million (down 34.9% year on year), representing a substantial decline in both revenue and profit, and growth momentum is clearly entering a decelerating phase. The operating profit margin showed only a slight improvement to 2.3% (from 2.2% in the previous period), and the low-margin structure remains unchanged.
Growth Strategy
Pursuing three initiatives under the Medium-Term Management Plan 2026: strengthening the core business, generating revenue in new fields, and reinforcing the management foundation
Maintain and expand steady sales in the amusement field (pachinko/pachislot-related), centered on Semiconductor Sales to automotive parts manufacturers. In FY2026 (ending May 2026), the Domestic Business Division achieved net sales of ¥102,391 million (up 24.5% year on year), but for FY2027 (ending May 2027), a decline in revenue is forecast due to an expected decrease in some semiconductor sales in the automotive field.
Amid the expansion of the AI-related market and progress in DX, an increase in orders is expected in the industrial equipment field. In the forecast for FY2027 (ending May 2027), the industrial equipment field is expected to see increased orders driven by expansion of the AI-related market, which is expected to help offset the decline in revenue in the automotive field. In the Overseas Business Division, steady performance in the automotive and other fields is also expected to continue.
Actively promote DX initiatives such as the use of AI and enhanced security, along with investment in human capital that contributes to employee growth. In FY2026 (ending May 2026), the equity ratio improved to 43.7% (from 39.2% in the previous fiscal year) and ROE improved to 12.7% (from 11.3% in the previous fiscal year), reflecting progress in strengthening the financial base. Shareholder returns continue to target a consolidated payout ratio of around 30% (annual dividend of ¥80 per share and a payout ratio of 29.9% for FY2026, ending May 2026).
Last updated: July 17, 2026