ENVALITH
西菱電機株式会社 logo

SEIRYO ELECTRIC CORPORATION

4341・Standard Market・Services

Official website
西菱電機株式会社 logo
SEIRYO ELECTRIC CORPORATION4341

Business

Seiryo Electric Co., Ltd. was founded in 1966 and is a TSE Standard-listed company that develops businesses specialized in the information and communications field as an affiliate of Mitsubishi Electric Corporation (which holds a 20.7% equity stake). The group consists of four consolidated subsidiaries (Comtech Service, Seiryo Electric Fielding, Seiryo Electric Engineering, and Tottori Seiryo Electric). The business is composed of two segments: the Information & Communications Terminal Equipment Business (sales, repair, and refurbishment of mobile handsets at 12 directly operated stores for docomo, au, SoftBank, and UQ Mobile) and the Information & Communications System Business (sales, maintenance, and manufacturing of systems such as disaster prevention administrative radio, video, and IP radio for government agencies and private-sector clients). Major customers include municipalities and government agencies nationwide, as well as private companies. Consolidated net sales for FY2026 (ending March 2026) were ¥20,675 million.

Business Model

In the Information & Communications Terminal Equipment Business, the company earns handset sales commission income at directly-operated stores as an agent for telecom carriers, as well as outsourcing income from mobile handset repair and refurbishment. In the Information & Communications System Business, the company sells systems such as those from Mitsubishi Electric to government agencies and private-sector clients, while also handling technical services such as installation, maintenance, and operation, as well as the in-house development, manufacturing, and sale of wireless communication equipment. The business structure benefits from stock-type businesses such as maintenance, which contribute to earnings stability.

Company Strengths

Deepened its relationship with Mitsubishi Electric in stages: designated as a Mitsubishi Electric electronic equipment service depot in 1968, became a franchised dealer in 1973, and signed an agency agreement in 1995. It is currently an affiliated company in which Mitsubishi Electric holds a 20.7% stake, and is contracted to provide sales support services for information and communications equipment for government and public offices. Sales to Mitsubishi Electric in FY2026 (ending March 2026) reached ¥3,504 million (16.9% of total sales).

The Information & Communications System Business maintained a high order backlog of ¥9,141 million (120.0% year-on-year) in FY2026 (ending March 2026). Orders received also expanded to ¥13,304 million (up 111.8% year-on-year), with an accumulation of projects for government and public offices, centered on Disaster Prevention Administrative Radio Systems & Comprehensive Disaster Prevention Solutions, enhancing visibility of future sales.

The company has obtained ISO9001 certification for its development, manufacturing, sales, and repair divisions, and has also obtained ISO/IEC27001 and ISO/IEC27017 certification for its development division. It also holds Privacy Mark certification. In a business whose main customers are government agencies and local governments, the establishment of quality and information security management systems forms the foundation of its competitiveness in winning orders.

ENVALITH's Perspective

For FY2026 (ending March 2026), revenue came to ¥20,675 million (up 7.1% year on year), operating profit was ¥380 million (up 36.2% year on year), and profit attributable to owners of parent was ¥244 million (up 200.5% year on year), representing the strongest recovery since the company fell into a loss in FY2023 (ended March 2023). In addition to the disappearance of the ¥55 million in special retirement benefits recorded in the previous period, the recording of ¥66 million in compensation received as extraordinary income also contributed to the boost in net income. The main drivers of revenue growth were an increase in large-scale orders from government agencies and higher orders at subsidiaries, and an improvement in profitability was also confirmed.

The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥21,000 million (up 1.6% year on year), operating profit of ¥380 million (down 0.2% year on year), and profit attributable to owners of parent of ¥210 million (down 14.0% year on year), anticipating higher revenue but lower profit. Continued investment in measures to improve employee treatment, sales promotion, and new market development is expected to push up fixed costs, and the disappearance of the extraordinary income (¥66 million in compensation received) recorded in FY2026 (ending March 2026) will also be a factor behind the year-on-year decline in net income. The sustainability of profit growth continues to warrant close attention.

In FY2026 (ending March 2026), the company acquired ¥176 million worth of treasury shares (with 116,432 treasury shares outstanding at period-end) and increased the per-share dividend by ¥10, from ¥23 in the previous period to ¥33. The dividend payout ratio normalized from 99.1% in the previous period to 44.9%, and DOE also reached 2.1%, a level in line with the dividend policy (the higher of approximately 1.5% DOE or a payout ratio in the 40% range). For FY2027 (ending March 2027), the company plans an annual dividend of ¥45, including a commemorative dividend of ¥15, confirming its increasingly proactive stance on shareholder returns. Meanwhile, the share buyback reduced the average number of shares outstanding during the period (from 3,498,168 shares to 3,321,531 shares), which also had the effect of boosting earnings per share.

Growth Strategy

The company aims to achieve net sales of ¥21,000 million and ordinary income of ¥400 million through three pillars: capturing disaster prevention demand, expanding stock-type businesses, and expanding sales of new products.

The company is promoting new market development targeting municipalities nationwide, centered on Disaster Prevention Administrative Radio Systems & Comprehensive Disaster Prevention Solutions, the disaster prevention app "Bousai Concier," and Water Management (Monitoring & Control) Solutions. In FY2026 (ending March 2026), the increase in large-scale orders from government agencies has directly contributed to the increase in sales and improved profitability of the Information & Communications System Business, confirming the effectiveness of these initiatives.

The company is expanding stock-type businesses such as maintenance contracts and operational services within the system business, building a stable earnings base less susceptible to fluctuations in order intake. Increased orders at subsidiaries (such as Seiryo Electric Engineering) are also contributing, and expansion of the overall group business scale is progressing.

The company is expanding sales of IP Radio Products & Video Solutions, including the "SoftBank A501SJ" launched for sale in March 2026, to private-sector customers, aiming to enhance added value and expand sales. In mobile terminal after-sales services, the company is also working to develop new market areas by leveraging its accumulated technical capabilities.

The company continues to implement measures to improve employee treatment in line with recent market conditions, strengthen internal systems for new business development and scale expansion, and invest actively in sales promotion. While these measures will increase fixed costs in the short term, they are positioned as strategic investments aimed at maintaining and strengthening competitiveness over the medium to long term.

Last updated: July 19, 2026