ELECOM CO., LTD.
6750・Prime Market・Electric Appliances
Business
ELECOM CO., LTD., founded in 1986, is a major domestic digital peripheral device manufacturer, centered on the "ELECOM" brand and encompassing multiple brands under its umbrella, including "Logitec," "HAGIWARA Solutions," "DXAntenna," and "TESCOM." Its business domains consist of four product categories: Power & I/O Devices (keyboards, mice, mobile batteries, etc.), Home Appliances (beauty and grooming appliances, etc.), BtoB Solutions (rugged tablets, NAS, reception-related equipment, etc.), and Peripherals & Accessories (network equipment, storage, etc.). In addition to BtoC sales channels such as consumer electronics retailers and e-commerce (net sales to Amazon Japan of ¥15,119 million, 11.4% of net sales), the company also focuses on the BtoB market for education, corporations, and government agencies. The group, comprising 17 consolidated subsidiaries, conducts business both domestically and internationally.
Business Model
The company primarily procures products in US dollars from manufacturing contractors overseas (China, etc.) and sells them domestically and internationally in combination with its own developed products, adopting a fabless-type business model. It conducts high-speed product development through a dual-hub development system in Yokohama and Shenzhen, generating revenue through home appliance retailers, e-commerce, and corporate sales channels. In the BtoB domain, the company is promoting higher value-added offerings through maintenance services and integrated solution proposals, aiming to improve profit margins.
Company Strengths
The company operates multiple brands including "ELECOM," "Logitec," "HAGIWARA Solutions," "DXAntenna," and "TESCOM," recording net sales of ¥132,132 million across four product categories: Power & I/O Devices, Home Appliances, BtoB Solutions, and Peripherals & Accessories. This diversifies reliance on specific products and achieves a product mix resilient to demand fluctuations.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 74.4%, with cash and cash equivalents of ¥58,497 million. While maintaining a financial structure close to debt-free, the company possesses the cash-generating capacity and financial foundation to execute initiatives such as making Nippon Antena (Communication & Broadcasting Antennas) Co., Ltd. a subsidiary through a share exchange and investing in a logistics center (total capital expenditure of ¥4,773 million).
The company has established the Yokohama Technology Development Center as its core development hub, and newly opened the Shenzhen Technology Development Center in March 2024. Local engineers conduct frequent vendor visits to gather trend information, enabling rapid product development. R&D expenses for FY2026 (ending March 2026) totaled ¥4,888 million. The company has a track record of winning nine series awards at the iF Design Award 2026 and twelve series at the Good Design Award (including one Good Design Gold Award).
ENVALITH's Perspective
Performance Trend
Net sales bottomed out at ¥103,727 million in FY2023 (ended March 2023) and have grown for three consecutive fiscal periods, reaching a record ¥132,132 million in FY2026 (ending March 2026), up 12.0% year on year, marking the highest level in the past five fiscal periods. Operating income also reached a record ¥15,524 million, up 14.7% year on year. External tailwinds included policy-driven demand such as the next-generation GIGA School Program and PC replacement demand associated with the end of Windows 10 support. Net income surged to ¥20,191 million, up 117.1% year on year, due to the recording of a ¥7,648 million gain on negative goodwill arising from the acquisition of Nippon Antena (Communication & Broadcasting Antennas), but the underlying profit growth trend, excluding this one-time factor, has also continued. For FY2027 (ending March 2027), the company forecasts net sales of ¥144,800 million (up 9.6% year on year) and operating income of ¥16,500 million (up 6.3% year on year).
Growth Strategy
Toward the final year of the FY2024–FY2027 (ending March 2027) mid-term management plan aiming to create "a unique global brand originating from Japan"
Strengthening the comprehensive corporate solutions platform through expanded orders for rugged tablets bundled with maintenance services, growing NAS demand, and synergies created by the business integration with Nippon Antena (Communication & Broadcasting Antennas) and DX Antenna. The plan for FY2027 (ending March 2027) targets net sales of ¥49,412 million (up 15.2% year on year) in BtoB Solutions.
Accelerating sales promotion through EC channels by expanding customer touchpoints, including strengthened SNS and DtoC initiatives, and enhancing product-specific marketing functions. Net sales to Amazon Japan are on an expanding trend, reaching ¥15,119 million in FY2026 (ending March 2026), up from ¥12,882 million in the previous fiscal year.
The mid-term management plan for the period from April 2024 to March 2027 sets numerical targets of average annual operating profit growth of 10% or more and ROE of 13% or more. In FY2026 (ending March 2026), operating profit growth reached 14.7% (12.0% on a two-year average basis) and ROE reached 21.2% (including gain on negative goodwill), significantly exceeding the targets.
The policy calls for progressive dividends (maintaining or increasing dividends) and maintaining a dividend payout ratio of 30% or more. In FY2026 (ending March 2026), the annual dividend was ¥57 (including a ¥5 commemorative dividend for the 40th anniversary), and the forecast for FY2027 (ending March 2027) is an annual dividend of ¥58 (an increase of ¥1). The company also plans to conduct share buybacks totaling ¥7.0 billion during the mid-term plan period.
In response to rising costs due to yen depreciation, the company continues to pursue profit improvement through the launch of new high-value-added products, cost reduction, and price revisions and discount control. In FY2026 (ending March 2026), the gross profit margin improved, and the operating profit margin also rose to 11.7% (from 11.5% in the previous fiscal year).
Last updated: July 19, 2026