ENVALITH
株式会社東名 logo

TOUMEI CO.,LTD.

4439・Standard Market・Information & Communication

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株式会社東名 logo
TOUMEI CO.,LTD.4439

Business

Tomei Co., Ltd. was established in 1997 and is headquartered in Yokkaichi City, Mie Prefecture, listed on the Tokyo Stock Exchange Standard Market. The company operates three segments: Office Hikari 119, a fiber-optic collaboration service utilizing NTT East and West's fiber-optic lines; Office Denki 119, an electricity retail service; and the Office Solutions Business, which bundles IT equipment, environmental products, insurance, and Web solutions. Its main customers are small and medium-sized enterprises and sole proprietors nationwide, and the company leverages a customer database of over 130,000 companies accumulated since 2015 as the foundation for a multifaceted sales strategy combining telemarketing and digital marketing. The company operates as a group with 15 locations nationwide (head office, 3 branches, 9 sales offices, and 2 training facilities) and 5 subsidiaries.

Business Model

The company's core revenue is generated by two businesses: fiber-optic collaboration (Office Hikari 119), in which it purchases fiber-optic lines from NTT East and NTT West and adds its own services before offering them to customers, and retail electricity (Office Denki 119), in which it procures electricity from JEPX and sells it. Both are stock-type businesses based on monthly recurring billing, meaning that the accumulation of contracts held directly translates into net sales. The company manages customer retention costs by internalizing its call center, customer support center, and billing/collection functions, thereby standardizing the entire workflow from sales through cancellation. Improving ARPU through cross-selling and upselling to existing customers is also an important pillar of revenue growth.

Company Strengths

In FY2025 (ending August 2025), net sales were ¥29,070 million (up 21.5% year on year), operating income was ¥3,293 million (up 42.3%), and net income was ¥2,433 million (up 56.6%). The two businesses of Office Hikari 119 (net sales of ¥12,580 million) and Office Denki 119 (¥13,194 million) accounted for approximately 89% of the total, with the accumulation of recurring revenue driving a high rate of profit growth.

The company holds a customer database of over 130,000 companies accumulated since the service launch in 2015. As of the end of FY2025 (ending August 2025), the number of contracted lines held by Office Hikari 119 was 134,896 lines (up 7,094 lines from the previous fiscal year-end), maintaining a low average monthly churn rate of 0.67%. The number of contracts held by Office Denki 119 steadily expanded to 56,546 contracts (up 11,050 contracts).

The company has built a system combining Web advertising operations by Digital Creators Corporation (established September 2024) and a dedicated telemarketing structure by ProAgent Corporation (established June 2025). By strengthening customer acquisition through both digital and telephone channels, the Web-based acquisition ratio reached 44.1% in FY2025 (ending August 2025). Expansion of the agency network is also being promoted in parallel.

ENVALITH's Perspective

Cumulative net sales for the nine months ended Q3 of FY2026 (ending August 2026) of ¥22,732 million represented 65.3% of the full-year forecast of ¥34,800 million, while operating profit of ¥2,482 million represented 67.8% of the full-year forecast of ¥3,662 million, with the progress rate broadly in line with the typical pattern of past years. On the other hand, segment profit for the Office Hikari 119 Business declined 1.2% year on year to ¥1,250 million, and close attention is warranted given that a significant increase in personnel expenses associated with job rotation and other factors is putting pressure on profitability. While high growth in the electricity business is driving overall performance, a recovery in profit at Office Hikari 119 will be key to achieving the full-year targets.

As an external factor, electricity trading prices on the Japan Electric Power Exchange (JEPX) trended at elevated levels compared to the same quarter of the previous year, increasing the cost of sales burden for the Office Denki 119 Business. Although electricity usage per customer declined due to the mild spring weather, overall usage expanded due to an increase in the number of contracts held, resulting in growth in net sales. Since fluctuations in electricity procurement costs directly affect the profit margin of this business, trends in JEPX prices will continue to be closely monitored as a key factor in future performance volatility.

The share supply-demand buffer trust established in October 2025 (aimed at improving the ratio of tradable shares) completed the full sale of its shares on May 19, 2026, bringing the corporate governance enhancement initiative to a conclusion. Meanwhile, non-operating expenses for the cumulative nine months of the third quarter under review included treasury stock acquisition costs of ¥33,627 thousand and treasury stock disposal costs of ¥25,006 thousand, which was a factor in the growth rate of ordinary profit (+5.9%) falling below that of operating profit (+8.1%). As these one-time costs will disappear following the completion of the trust, an improvement in the ordinary profit margin is expected from the next fiscal year onward.

Growth Strategy

Under the medium-term management plan "NEXT GROWTH 2027," the company aims for net sales of ¥40.2 billion and operating profit of ¥4.63 billion.

The company is significantly increasing new acquisitions and the number of contracts held through continuous expansion of its agency network and strengthened in-house telemarketing. Cumulative segment sales for the third quarter reached ¥10,858 million (up 16.3% year on year), maintaining high growth, with the accumulation of recurring revenue driving overall company performance.

The company aims to improve profitability through ARPU improvement measures and stable operation of digital marketing. Progress toward the target of maintaining a web-based customer acquisition ratio of 50% or higher is proceeding as planned. However, the company has disclosed that the target of 148,000 contracts held by the end of FY2026 (ending August 2026) faces considerable challenges at present, and achieving it is expected to take some time.

Effective January 1, 2027, the Nagoya Branch will be renamed the "Nagoya Head Office," transitioning to a dual-headquarters system. The purpose is to strengthen the sales structure, accelerate decision-making, and enhance recruiting capabilities. In April 2026, more than 50 new employees joined the company, strengthening the human resource base. There is no change to the existing head office functions.

Under the medium-term management plan with FY2027 (ending August 2027) as its final year, the company targets net sales of ¥40.2 billion, operating profit of ¥4.63 billion, EPS of ¥108.67, and ROE of 26.1%. The basic policy is to be "a professional corporate group that solves the challenges of small and medium-sized enterprises through the active utilization of young talent and organizational strength."

Last updated: July 17, 2026