ENVALITH
太洋テクノレックス株式会社 logo

TAIYO TECHNOLEX CO.,LTD.

6663・Standard Market・Electric Appliances

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太洋テクノレックス株式会社 logo
TAIYO TECHNOLEX CO.,LTD.6663

Business

Taiyo Techno-Lex Co., Ltd. is an electronic components and industrial machinery group based in Wakayama Prefecture. In its core Electronic Circuit Board Business, the company provides FPC (Flexible Printed Circuit) prototyping and small-to-medium lot volume production through an integrated in-house manufacturing system, serving a wide range of customers including medical equipment, industrial equipment, and smartphones. In the Test System Business, the company manufactures and sells Continuity Test Machines and Visual Inspection Machines, while in the Mirror Surface Polishing Machine Business, its consolidated subsidiary Mirac Co., Ltd. manufactures Cylindrical Mirror Surface Polishing Machines. The Industrial Machinery System Business offers Industrial Robot SI (System Integration) Service and Visual Inspection Equipment & Image Processing Equipment. In addition to four domestic locations, the company has overseas subsidiaries in Thailand and China. Consolidated net sales for FY2025 (ending March 2025) were ¥3,751 million.

Business Model

In the Electronic Circuit Board Business (64% of net sales), a fully integrated in-house system from pattern design to final inspection achieves delivery in as little as 3 days, capturing profits in the high value-added domain of prototyping and small-to-medium lot volume production. The three businesses—Test System, Mirror Surface Polishing Machine, and Industrial Machinery System—complementarily build up earnings. While investing ¥61 million in R&D expenses to maintain technological differentiation, the company also accumulates recurring revenue from repair, maintenance, and consumables sales.

Company Strengths

All processes except component mounting—from pattern design to drilling, plating, etching, and final inspection—are completed entirely in-house. This achieves delivery in as little as 3 days from order receipt, meeting customers' needs for short lead times and small-volume production. In FY2025, the Electronic Circuit Board Business posted sales of ¥2,409 million, maintaining a highly profitable structure with a segment profit margin of 20.8%.

In FY2025, sales reached ¥3,751 million (up 6.6% year on year), with operating profit of ¥142 million, marking a return to profitability for the first time in 4 fiscal periods. Due to personnel cost reductions from a voluntary early retirement program, the SG&A expense ratio declined by 4.0 percentage points year on year to ¥981 million. The equity ratio stood at 58.4% (up 3.4 percentage points year on year) and the current ratio was 332.2%, indicating high financial soundness.

In FY2025, orders received in the Electronic Circuit Board Business totaled ¥2,479 million (up 8.0% year on year), and the order backlog stood at ¥330 million (up 27.1% year on year), improving as a leading indicator for next period's sales. The order backlog in the Test System Business also increased significantly, up 182.0% year on year to ¥77 million, suggesting multiple segments are positioned to contribute to next period's performance.

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), the Electronic Circuit Board Business segment recorded a high segment profit margin of 24.4%, achieving a 63.3% year-on-year increase in profit. The margin improvement is being driven by increased orders for new mass-production projects for camera manufacturers and industrial equipment manufacturers, as well as a rise in the ratio of in-house manufactured products, confirming a structural improvement in profitability. As an external factor, steady demand for electronic circuit boards for data centers driven by expanding AI-related demand is also providing a tailwind, and it is judged that the likelihood of achieving the full-year operating profit forecast of ¥121 million (up 14.9% year on year) has increased.

In Q1, the Test System Business recorded a segment loss of ¥28 million (improved from a loss of ¥39 million in the same quarter of the previous year), and the Industrial Machinery System Business also recorded a segment loss of ¥6 million (improved from ¥12 million in the same period), with both segments remaining in the red. In addition, early retirement incentive payments of ¥8 million at a consolidated subsidiary were recorded as an extraordinary loss, and quarterly net profit attributable to owners of the parent was limited to ¥2 million. Against ordinary profit of ¥22 million, corporate and other taxes amounted to ¥10 million, reflecting a high effective tax rate, and the low level of net profit warrants continued close attention.

Q1 sales in the Mirror Surface Polishing Machine Business fell sharply to ¥65 million, down 45.1% year on year. The main cause is a decrease in sales of polishing machine units, which has not been fully offset by stock revenue from consumables and maintenance. Segment profit plunged to ¥5 million (down 76.8% year on year), and if the recovery in capital investment demand is delayed, this could exert downward pressure on full-year performance. On the other hand, the full-year earnings forecast remains unchanged from the figures announced on January 30, 2026, suggesting that the company anticipates a recovery in the second half.

Growth Strategy

Aiming for a medium-term ROE of 8% or higher, centered on medical devices, power devices, and EMS expansion

Promoting increased orders for new mass-production projects from camera manufacturers and industrial equipment manufacturers. In Q1 of FY2026 (ending December 2026), segment sales reached ¥649 million (up 13.2% year-on-year) and segment profit reached ¥158 million (up 63.3% year-on-year), with profit margin improvement becoming evident due to an increased proportion of in-house manufactured products.

Promoting sales of Visual Inspection Machines for ceramic substrates targeting the power device market, which is growing on the back of the spread of AI, EVs, and high-speed communications. In Q1 of FY2026 (ending December 2026), sales of Visual Inspection Machines for ceramic substrates were achieved. The loss narrowed to ¥28 million from ¥39 million in the same quarter of the previous year, reflecting progress in the shift toward a higher-margin product mix.

Implementing personnel cost reductions through measures such as voluntary early retirement programs. In Q1 of FY2026 (ending December 2026), selling, general and administrative expenses were ¥249 million, down ¥31 million year-on-year, contributing to a return to operating profit. A consolidated subsidiary also recorded ¥8 million in early retirement incentive payments as an extraordinary loss, and structural reforms continue.

Promoting the accumulation of stock-type revenue from Polishing Consumables (Grinding Wheels, etc.) and Machine Repair & Maintenance Service. While an increase in orders for consumables and maintenance was confirmed in Q1 of FY2026 (ending December 2026), sales declined sharply to ¥65 million (down 45.1% year-on-year) due to a decrease in polishing machine main unit sales. Recovery in capital expenditure demand will be key to a turnaround in main unit sales.

Last updated: July 17, 2026