TAKAOKA TOKO CO., LTD.
6617・Prime Market・Electric Appliances
Power Equipment Business
The core segment of the Toko Takaoka Group, responsible for the manufacturing, sale, and installation of substation & distribution equipment.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (Full Year) | ¥63,864 million | ¥59,878 million | ↑ |
| Segment Profit (Full Year) | ¥9,595 million | ¥6,210 million | ↑ |
| Segment Profit Margin (Full Year) | 15.0% | 10.4% | ↑ |
| YoY Sales Change | +6.7% | － | ↑ |
| YoY Profit Change | +54.5% | － | ↑ |
Business Details
This segment is centered on the manufacture, sale, and installation of substation & distribution equipment, monitoring & control systems / control equipment, and related products. It handles transformers, switchgear, switches, distribution control equipment, security monitoring/control devices, transmission system equipment, and also undertakes electrical & air-conditioning facility construction contracts. Its main customer is Tokyo Electric Power Grid Co., which accounts for approximately 57% of the Group's total sales, making this the largest segment. An increase in extra-high-voltage substation equipment plant projects has been driving performance.
Recent Overview
Both sales and profit increased significantly due to a rise in extra-high-voltage substation equipment plant projects.
In FY2026 (ending March 2026), an increase in extra-high-voltage substation equipment plant projects drove segment sales to ¥63,864 million (up 6.7% year on year) and segment profit to ¥9,595 million (up 54.5% year on year), achieving a substantial profit increase. The profit margin improved from 10.4% to 15.0%. Under the SQC First reform, the company has begun fundamental improvements to technology, quality, and business structure, and has formulated a plan for reorganizing the Oyama Plant. For FY2027 (ending March 2027), the company expects continued increases in both sales and profit, supported by demand for power network renewal and substation equipment for storage battery stations.
Key Products
Growth Drivers
- Increased power demand and expanding demand for extra-high-voltage substation equipment driven by the construction of new data centers and accelerated semiconductor plant construction amid the spread of generative AI
- Expanding renewal demand due to the aging of transmission and distribution equipment built during the period of rapid economic growth
- Increasing demand for grid interconnection equipment and substation equipment for storage battery stations amid the expansion of renewable energy adoption toward achieving carbon neutrality
- Continuation of power companies' capital investment plans against the backdrop of the introduction of the revenue cap system
- Strengthening of the supply framework through capacity expansion via factory DX and automation (Oyama Plant reorganization)
Risks
- Risk of sales concentration in Tokyo Electric Power Grid Co. (transaction amount of ¥30,653 million in the current period, approximately 27% of consolidated sales)
- Risk of suppressed capital investment in the power industry due to geopolitical risk and surging fuel prices
- Risk of profitability deterioration due to fluctuations in raw material prices and foreign exchange rates
- Risk of recurrence of quality and compliance issues while the SQC First reform is underway
- Cash flow burden risk associated with large-scale investments such as the Oyama Plant reorganization (total investment plan of ¥47.0 billion)
Last updated: June 25, 2026