SAXA, Inc.
6675・Standard Market・Electric Appliances
SAXA, Inc. (Single Segment)
A single business entity centered on the development, manufacturing, and sale of information and communication systems equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating Revenue (Consolidated) | ¥44,099 million | ¥44,064 million | — |
| Operating Profit (Consolidated) | ¥2,089 million | ¥3,333 million | ↓ |
| Ordinary Profit (Consolidated) | ¥2,131 million | ¥3,404 million | ↓ |
| Profit Attributable to Owners of Parent (Consolidated) | ¥1,375 million | ¥3,502 million | ↓ |
| Operating Profit Margin on Operating Revenue | 4.7% | 7.6% | ↓ |
| Equity Ratio | 61.2% | 68.1% | ↓ |
| ROE (Return on Equity) | 4.3% | 11.8% | ↓ |
| Total Assets | ¥53,492 million | ¥45,203 million | ↑ |
| Net Assets | ¥32,727 million | ¥30,764 million | ↑ |
| Cash Flow from Operating Activities | ¥2,393 million | ¥3,267 million | ↓ |
| Cash and Cash Equivalents at End of Period | ¥10,394 million | ¥10,291 million | — |
| Earnings per Share (Split-adjusted) | ¥79.00 | ¥201.15 | ↓ |
| Annual Dividend per Share (Split-adjusted) | ¥305.00 (ordinary dividend ¥135 + special dividend ¥170) | ¥165.00 | ↑ |
Business Details
The corporate group is a single-segment company providing development, manufacturing, and sale of information and communication systems equipment and components, as well as related services. It comprises four priority areas: SAXA Brand Business (network / crime and disaster prevention), OEM Business, Systems Business (Video Solutions), Organic EL Device Business (Soar Corporation), and EMS Business. In February 2026, a Business Structure Transformation Committee was established, and a review of the medium-term management plan was initiated. In March 2026, Newtech Co., Ltd. was made a wholly owned subsidiary, incorporating the storage field into the group.
Recent Overview
Operating profit fell 37% due to accelerated growth investment; full subsidiarization of Newtech and Sagamihara real estate transfer are subsequent events
In FY2026 (ending March 2026), operating revenue was ¥44,099 million (up 0.1% year on year), essentially flat, but operating profit fell sharply to ¥2,089 million (down 37.3% year on year) due to increased growth investment (SG&A expenses of ¥11,063 million, up ¥886 million year on year). Newtech Co., Ltd. was acquired for ¥5,135 million and made a wholly owned subsidiary, resulting in recorded goodwill of ¥2,530 million. Short-term borrowings increased by ¥4,691 million due to financing for the Newtech acquisition (total contract amount ¥5,500 million), raising financial leverage. As a subsequent event, land in Sagamihara City (53,720 sq. m) was transferred on April 1, 2026, and a gain on transfer of ¥23,244 million is expected to be recorded in FY2027 (ending March 2027). The earnings forecast for FY2027 (ending March 2027) remains undetermined as the medium-term management plan is under review. A 1-for-3 stock split was implemented effective April 1, 2026.
Key Products
Growth Drivers
- Expanded orders in the network and crime/disaster prevention fields driven by rising security demand (SAXA Brand Business up ¥736 million in FY2026, ending March 2026)
- Sales contribution from the Organic EL Device Business through the full-year consolidation of Soar Corporation (up ¥2,749 million in FY2026, ending March 2026)
- Incorporation of storage technology and deployment of integrated video, AI, and storage solutions through the full subsidiarization of Newtech Co., Ltd.
- Strengthened financial base through the recording of the Sagamihara City land transfer gain (approximately ¥23,244 million) in FY2027 (ending March 2027)
- Development of a co-creation-based manufacturing hub and production innovation based on the "Yonezawa Advanced Factory Concept"
- Concentration on four priority business areas (products, systems, EMS, and devices) and promotion of a growth strategy led by business owners
- Fundamental review of cost structure and business structure transformation through the new medium-term management plan scheduled to be announced on June 5, 2026
Risks
- Increase in selling, general and administrative expenses and profit pressure due to accelerated growth investment (DX investment, facility restructuring, M&A, etc.), with the operating profit margin declining to 4.7% in FY2026 (ending March 2026)
- Decline in orders (down ¥3,092 million in FY2026, ending March 2026) and shrinking revenue scale due to the review of low-profitability businesses within the OEM Business
- Increased financial leverage and financial constraint risk due to borrowings with financial covenants related to the Newtech acquisition (total contract amount ¥5,500 million, outstanding balance at period-end ¥4,900 million)
- Risk of breaching financial covenants (EBITDA multiple of 7x or less, prohibition on two consecutive fiscal years of ordinary loss) associated with borrowings related to the acquisition of Soar shares (total contract amount ¥2,000 million, outstanding balance at period-end ¥1,167 million)
- Customer concentration risk due to sales dependence on the NTT Group
- Increased manufacturing costs and expenses due to rising material and labor costs, requiring a fundamental review of the cost structure
- Uncertainty in disclosure to investors, as the earnings forecast for FY2027 (ending March 2027) remains undetermined amid the medium-term management plan review
- Risk of lost sales opportunities due to difficulty in procuring components, particularly semiconductors
- Risk of rising raw material costs and transportation costs due to geopolitical risks (U.S. trade policy, Middle East situation)
Last updated: June 24, 2026