ENVALITH
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SAXA, Inc.

6675・Standard Market・Electric Appliances

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サクサ株式会社 logo
SAXA, Inc.6675

Business

SAXA, Inc. traces its roots to Tamura Electric Works and Taikoh Electric Works, both founded in 1938, and transitioned from a holding company to an operating company in 2024. It is an information and communication systems equipment manufacturer operating four businesses: the Products Business (business phones, UTM, etc.), the Systems Business (Video Solutions), the EMS Business (electronic equipment contract manufacturing), and the Device Business (organic EL displays), with a customer base of approximately 250,000 companies nationwide. The company has six consolidated subsidiaries (Soar Corporation, System K Corporation, New Tech Corporation, etc.), and operating revenue for FY2026 (ending March 2026) was ¥44,099 million. Its main customers are the NTT Group (24.5% of sales) as well as mid-tier and small-to-medium enterprises and telecommunications carriers.

Business Model

The two core pillars of revenue are the SAXA Brand Business (¥14,845 million) and the OEM Business (¥17,677 million), supplemented by the Systems Business (Video Solutions) (¥6,269 million) and the Organic EL Device Business (¥5,306 million). Proprietary brand products generate continuous demand through cross-selling to a customer base of approximately 250,000 companies nationwide, while the OEM and EMS businesses build long-term trading relationships by handling clients' product development on an end-to-end contracted basis. The company invests ¥3,516 million in R&D expenses to continuously deliver products and services that integrate communications, video, AI, and security technologies.

Company Strengths

The company holds a nationwide customer base of approximately 250,000 companies built through product businesses such as business phones and UTM. Leveraging this base, it is promoting comprehensive IT solutions and cross-selling through "Office AGENT," and the expansion of sales to existing customers contributed to a ¥736 million year-on-year increase in SAXA Brand Business sales in FY2026 (ending March 2026).

Soar Inc. has 29 years of track record in organic EL (OLED) display production, having accumulated proprietary film encapsulation technology and manufacturing equipment. Its capability to mass-produce custom OLEDs, which is difficult for other companies to achieve, is highly regarded by customers, and orders received in the Organic EL Device Business increased significantly by 207.4% year on year in FY2026 (ending March 2026).

As of the end of FY2026 (ending March 2026), net assets stood at ¥32,727 million and the equity ratio was a high 61.2%, indicating strong financial soundness. Furthermore, the transfer of real estate in Sagamihara City to Mitsubishi Estate (completed in April 2026, with an estimated gain on transfer of ¥23,244 million) is expected to generate cash inflows of ¥26.0 billion from real estate sales and ¥7.0–9.0 billion from the utilization of interest-bearing debt during the medium-term management plan period, securing funds for growth investment and shareholder returns.

ENVALITH's Perspective

Operating profit for FY2026 (ending March 2026) was ¥2,089 million, down 37.3% year on year. Cost of sales rose to ¥30,946 million (from ¥30,553 million in the prior year) and SG&A expenses rose to ¥11,063 million (from ¥10,177 million), with both increasing, causing the operating margin to decline to 4.7%. This was the result of rising material and labor costs compounded by growth investments. Whether the new medium-term management plan, scheduled for announcement on June 5, 2026, presents a fundamental review of the cost structure will be the most critical event for judging the outlook for margin recovery.

Operating revenue of the OEM Business for FY2026 (ending March 2026) was ¥17,677 million, down ¥3,092 million year on year. This reflects an intentional reduction in orders due to the review of low-profitability projects, and is explained as a strategic decision aimed at improving profitability. However, this segment is the largest, accounting for approximately 40% of consolidated operating revenue, and if the growth rate of alternative revenue sources (the SAXA Brand Business and the Device Business) fails to keep pace, there is a risk that top-line stagnation could become prolonged.

Goodwill of ¥2,530 million, provisionally recognized in connection with the acquisition of Newtech, is scheduled to be amortized on a straight-line basis over 10 years. In addition, the financing for this acquisition (total contract amount of ¥5,500 million, with an outstanding loan balance of ¥4,900 million at fiscal year-end) is subject to financial covenants, including maintaining net assets at 75% or higher, a prohibition on two consecutive years of ordinary loss, and an EBITDA multiple of 7 times or less, which could become a financial constraint in a downturn in business performance. The sharp increase in short-term borrowings, from ¥1,205 million in the prior year to ¥5,896 million, is also a point warranting close attention from a liquidity management perspective.

Growth Strategy

Concentration on four priority business areas and fundamental review of the cost structure through the new medium-term management plan

The Business Structure Transformation Committee, established on February 27, 2026, is formulating the new plan around six pillars: review of the current plan, growth strategies for the four priority businesses, the Yonezawa Advanced Factory concept, capital allocation, shareholder returns, and business structure transformation. Scheduled for announcement on June 5, 2026.

Newtech Co., Ltd. became a wholly owned subsidiary effective March 25, 2026 (acquisition cost of ¥5,135 million, goodwill of ¥2,530 million). By incorporating its storage technology and customer base, the company aims to provide advanced solutions integrating video, AI, and storage. In the current consolidated fiscal year, only the balance sheet was consolidated; full profit and loss contribution is expected to begin in FY2027 (ending March 2027).

Leveraging existing facilities in the Yonezawa area, the company aims to evolve into a co-creation manufacturing hub covering everything from development to service. The concept was announced on May 21, 2025, and preparations are underway. Decisions have also been made to establish the Yokohama, Sapporo, and Hachinohe Innovation Centers (tentative names) and the Yonezawa Monozukuri Center (tentative name).

The company transferred land in Sagamihara City on April 1, 2026, and expects to record an estimated gain on transfer of ¥23,244 million in FY2027 (ending March 2027). The policy for special dividends (total of approximately ¥3.0 billion) has been changed to be front-loaded, moving from 10 installments over 5 years to 5 installments over 2.5 years. The annual dividend for FY2026 (ending March 2026) is ¥305 (pre-stock split), a substantial increase from ¥165 in the previous year.

Centered on the OLED manufacturing technology of Soar Inc., orders remain solid, driven mainly by mass production projects. The company is developing next-generation devices that apply its proprietary film encapsulation technology to barrier film formation on flexible substrates. Active capital investment is planned with the aim of improving production capacity and performance.

Last updated: July 19, 2026