ENVALITH
株式会社東光高岳 logo

TAKAOKA TOKO CO., LTD.

6617・Prime Market・Electric Appliances

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株式会社東光高岳 logo
TAKAOKA TOKO CO., LTD.6617

Business

Toko Kaatsu Denki was formed in 2012 through the business integration of Kodaka Corporation and Toko Electric. In its core Power Equipment Business, the company manufactures and sells Substation & Distribution Equipment such as transformers and switchgear, and performs installation work. In the Metering Business, it handles the manufacture and sale of smart meters and Instrument Transformers & Various Meters, as well as Meter Expiration Replacement Work. In the GX Solutions Business, the company promotes EV Quick Chargers (SERA Brand), the PPP/PFI Business, and smart grid operations, while the Optical Application Inspection Equipment Business manufactures and sells 3D Inspection Equipment for semiconductors. Its major customers are power companies including Tokyo Electric Power Grid, and sales to this customer accounted for ¥43,862 million (39.1% of total net sales) in FY2026 (ending March 2026). The company operates across a wide range of business areas, from the development and renewal of domestic power infrastructure to the construction of next-generation energy networks.

Business Model

The two core businesses, Power Equipment Business and Meter Business, account for approximately 86% of net sales, securing stable earnings by combining product manufacturing and sales with contracted installation work and Meter Expiration Replacement Work. In the Metering Business, the company is expanding into an integrated supply chain covering manufacturing through logistics, installation work, and data utilization, driven by the operation of the Smart Meter Assembly Center (SMAC). In the GX Solutions Business, the company aims to build stock-type earnings through one-stop services for EV charging infrastructure and the PPP/PFI Business. The structure also includes the Real Estate Leasing Business (profit margin of 63.5%), which underpins stable earnings.

Company Strengths

The company has continuously supplied extra-high-voltage substation plant equipment to power utilities, led by Tokyo Electric Power Grid. In FY2026 (ending March 2026), orders received in the Power Equipment Business reached ¥67,880 million (up 16.5% year on year), with an order backlog of ¥67,458 million. Long-standing transaction history and technical reliability form a barrier to entry.

Consolidated subsidiary Toko Toshiba Meter Systems has established a manufacturing line with a 100% automation rate, and in January 2026 began operating the Smart Meter Assembly Center (SMAC) at the Hasuda site. The company has built an industry-leading structure that is involved across the entire supply chain—manufacturing, logistics, installation work, and data utilization—giving it a vertically integrated business foundation that competitors would find difficult to replicate in a short period.

Revenue sources are diversified across multiple segments: Power Equipment (profit margin 15.0%), Metering (13.8%), GX Solutions (turned profitable), Optical Application Inspection Equipment (5.8%), and Real Estate Leasing (63.5%). In FY2026 (ending March 2026), the consolidated operating margin was 8.7% (up 3.0 percentage points year on year), and the gross profit margin was 25.5% (up 2.3 percentage points year on year), reflecting a steadily improving earnings structure.

ENVALITH's Perspective

For FY2026 (ending March 2026), operating profit was ¥9,763 million (up 60.2% year on year), ordinary profit was ¥10,084 million (up 60.0%), and profit attributable to owners of parent was ¥6,602 million (up 72.7%), achieving substantial profit growth across all profit items. Recovery from the impact of the inappropriate conduct issue in FY2025 (ended March 2025) is progressing at a faster pace than expected. As an external factor, increased electricity demand associated with data center and semiconductor plant construction, along with expanding demand for replacement of aging equipment, provided strong support to business performance.

The business forecast for FY2027 (ending March 2027) calls for net sales of ¥115,000 million (up 2.6% year on year), operating profit of ¥10,000 million (up 2.4%), and ordinary profit of ¥10,100 million (up 0.2%), indicating moderate growth in the core business. However, due to the recording of extraordinary income from a gain on sale of fixed assets (approximately ¥10.7 billion) associated with the transfer of a leased building in Shinagawa-ku, Tokyo, and a reversal gain on the repair provision (approximately ¥1.3 billion), profit attributable to owners of parent is expected to increase substantially to ¥10,000 million (up 51.5%). The dividend forecast is ¥134 per share (targeting a payout ratio of 40%), representing a significant dividend increase, and the company's stance of expanding shareholder returns can be positively evaluated.

In the Metering Business, although there was a temporary shortfall in shipments versus plan in FY2025, a recovery in sales from FY2026 onward and the establishment of a revenue base through the full-scale operation of the SMAC business are expected. The GX Solutions Business turned profitable in FY2026 (ending March 2026), posting ¥493 million, but its scale remains small, and progress in launching the next-generation ultra-rapid charger SERA-400 and expanding the customer base will serve as a litmus test for achieving the FY2027 medium-term management plan targets. The Optical Application Inspection Equipment Business saw declines in both revenue and profit due to continued restraint in capital investment in the semiconductor industry, and the timing of recovery needs to be carefully monitored.

Growth Strategy

Building on the SQC First reform as its foundation, the company aims to achieve sustainable growth by strengthening its core business resilience and concentrating investment in three focus businesses (smart meters, EVs, and semiconductor inspection).

Promoting the reconstruction of a corporate culture that prioritizes safety, quality, and compliance above all else. A new management philosophy (Purpose, Vision, Credo) has been established and disseminated to all employees. The company has established a system for monthly monitoring of 36 action plans and regular reporting to the Board of Directors, strengthening its governance and compliance framework.

Initiated fundamental improvements in technology, quality, and business structure for large transformers and gas-insulated switchgear, which make up extra-high-voltage substation equipment plants. Aiming to expand production capacity through factory DX and automation, the company has formulated a plan for the reorganization of the Oyama Plant, including the construction of a new building. Results are becoming evident, with segment profit for FY2026 (ending March 2026) reaching ¥9,595 million (up 54.5% year on year).

Completed the establishment of a manufacturing line with a 100% automation rate at Toko Toshiba Meter Systems. At the Hasuda SMAC (Smart Meter Assembly Center (SMAC) Contract Service), final assembly and pairing operations have begun for some power companies, building a system of involvement across the entire supply chain from manufacturing to logistics, installation work, and data utilization. The company aims to recover sales and expand its share across all power companies from fiscal 2026 onward.

Accelerating the rollout of the "SERA" brand and promoting development of the next-generation ultra-fast charger "SERA-400 (400kW)". Building a system to provide one-stop EV charging infrastructure services in cooperation with consolidated subsidiary Mintwave. The GX Solutions Business turned profitable in FY2026 (ending March 2026), posting ¥493 million, with growth in the PPP/PFI Business also contributing.

The company plans to sell a leased building in Shinagawa-ku, Tokyo (land: 2,339.53 sq.m; building: 20,250.03 sq.m) in stages, expecting to record a gain on sale of fixed assets of approximately ¥10.7 billion and a reversal gain on repair provisions of approximately ¥1.3 billion in FY2027 (ending March 2027) and FY2028 (ending March 2028). Proceeds from the sale will be allocated to SQC investments, growth investments, and share buybacks (up to 1,300,000 shares / ¥5.0 billion). The dividend payout ratio target has been raised from 30% to 40%, with the annual dividend forecast for FY2027 (ending March 2027) set at ¥134 per share.

Last updated: July 19, 2026