MEIJI ELECTRIC INDUSTRIES CO.,LTD.

Business Details

The Group is an FA engineering trading company whose core business is the sale of Control Equipment, Industrial Equipment, Measuring Equipment, Power Supply Equipment, Mounting Equipment, and other products. Its main customers include automotive-related companies (Denso is its largest customer), as well as companies in the electrical/electronics, semiconductor, and machine tool/industrial machinery sectors. Rather than merely acting as a trading company, it leverages FA engineering capabilities to propose systems, operating through five domestic sales headquarters and a Solutions Business Headquarters, in addition to overseas bases in the United States, the United Kingdom, China, Thailand, and India. The Engineering Business Headquarters also designs and manufactures in-house developed products such as inspection equipment and production support systems.

Recent Overview

In FY2026 (ending March 2026), net sales declined, but both gross profit and operating profit improved; a portion of the figures in the financial results summary was corrected

For the full year of FY2026 (ending March 2026), net sales decreased to ¥76,360 million (down ¥2,312 million year on year), while gross profit rose to ¥12,388 million (up ¥593 million year on year) and operating profit rose to ¥3,670 million (up ¥375 million year on year), reflecting improved profitability. Separately, on June 15, 2026, a correction to the financial results summary was announced: within non-operating expenses for the prior consolidated fiscal year, aggregation errors were corrected for "loss on extinguishment of stock-based compensation expense" (from ¥1,803 thousand to ¥380 thousand) and "other" (from ¥1,051 thousand to ¥2,474 thousand). Total non-operating expenses (¥12,295 thousand) remain unchanged, and there is no impact on net income.

Key Products

Growth Drivers

• Continued expansion of investment by automotive-related companies in next-generation mobility (electrification, autonomous driving) development
• Acquisition of large-scale automotive-related facility projects, exemplified by the significant increase in Power Supply Equipment sales (up 33.0% year on year)
• Steady trends in demand related to semiconductors and logistics
• Effects of profitability improvement activities through productivity gains (improved operating margin despite declining net sales)
• Expansion of support for Japanese companies expanding overseas through overseas bases (US, UK, China, Thailand, India)
• Human capital investment in growth areas and strengthening of the core business under the 11th Medium-Term Management Plan (FY2024–FY2026)

Risks

• High dependence on capital investment trends among major automotive-related customers (Denso is the largest customer)
• Deterioration of the automotive industry's export environment and increased caution in investment due to US tariff policy under the Trump administration
• Global economic uncertainty due to China's economic slowdown and prolonged geopolitical risks
• Structural upward pressure on selling, general and administrative expenses, including base pay increases, rising overseas labor costs, and increased employee benefit expenses
• Uncertainty regarding the pace of recovery in investment by electrical, electronics, and semiconductor-related companies
• Risk that deteriorating consumer sentiment due to price increases will restrain the domestic economic recovery