ENVALITH
株式会社多摩川ホールディングス logo

TAMAGAWA HOLDINGS CO.,LTD.

6838・Standard Market・Electric Appliances

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株式会社多摩川ホールディングス logo
TAMAGAWA HOLDINGS CO.,LTD.6838

Business

Tamagawa Holdings Co., Ltd. is a holding company centered on a high-frequency electronic components and equipment manufacturer founded in 1968. In its Electronic & Communication Equipment Business, the company offers a wide range of products from high-frequency electronic components such as attenuators and splitters to optical transmission equipment, digital signal processing equipment, and millimeter-wave products, with government agencies, telecom carriers, and the semiconductor industry as its main customers. In its Renewable Energy Business, revenue is generated from power sales income from solar and small wind power plants, as well as from Power Plant Development & Sale. The group consists of the company and 18 subsidiaries, and is listed on the TSE Standard Market. Consolidated net sales for FY2025 were ¥5,587 million, with operating income of ¥278 million, marking a return to profitability.

Business Model

In the Electronic & Communication Equipment Business, the company receives orders for and manufactures high-frequency products—including custom-specification items—for government agencies, telecommunications carriers, and the semiconductor industry. It combines cost competitiveness leveraging its Vietnam plant (relocated to a new facility in October 2025, doubling production capacity) with domestic design capabilities. In the Renewable Energy Business, power sales revenue from power plants developed through syndicated loans and other financing serves as a stable earnings base, while Power Plant Development & Sale tailored to customer needs also serves as a source of revenue.

Company Strengths

In FY2025, the order backlog for the Electronic & Communication Equipment Business stood at ¥5,583 million (up 4.5% year on year), maintaining an all-time high level. Amid increased national budget allocations, the company secured a succession of large-scale project orders in the government and public sector-related market, with sales to government and public sector clients accounting for more than half of total sales. Sales to NEC Corporation expanded sharply to approximately 10 times the prior-year level, reaching ¥1,331 million (23.8% of sales composition).

Since its founding in 1968, the company has built, around its core analog high-frequency technology, a wide-ranging product lineup spanning components such as attenuators and splitters, Millimeter-Wave & Terahertz-Band Products, digital signal processing equipment, and Semiconductor Reliability Test Equipment. A technical staff of 58 is engaged in research and development, with R&D expenses of ¥161 million in FY2025. The company possesses a technological foundation capable of expanding into multiple markets, including 5G, government and public sector, semiconductors, and measurement/FA.

30 small-scale wind power plants developed using syndicated loans and sustainable financing completed grid connection by the end of February 2024, achieving full-year full-capacity operation in FY2025. Wind power plants in Hokkaido and Tohoku, along with solar power plants in Nagano, Ibaraki, Yamanashi, and other locations, continued steady power sales, resulting in Renewable Energy Business sales of ¥558 million and segment profit of ¥74 million.

ENVALITH's Perspective

Revenue for the H1 FY2026 (ending March 2026) period of ¥3,742 million (up 45.3% year on year) and operating profit of ¥751 million (up 275.2% year on year) were primarily driven by the transition of core products for social infrastructure to the mass production phase and large-scale orders in mobile infrastructure. The full-year forecast has been revised upward to revenue of ¥6,950 million and business profit of ¥820 million, and it is noteworthy that this is on track to exceed the FY2028 (ending October 2028) operating profit target of ¥761 million set out in the medium-term management plan announced in December 2025, ahead of schedule.

Of the full-year forecast for net income attributable to owners of parent of ¥1,835 million, valuation gains on Addvalue Technologies shares (¥2,254 million as of end-April 2026) account for a substantial portion. Since this valuation gain is reassessed each quarter, there is a risk that profit could fluctuate significantly depending on movements in the Singapore stock market. It is important to distinguish between the underlying business earnings power on an operating profit basis (full-year forecast of ¥820 million) and net income including the valuation gain (¥1,835 million), and this distinction should also be reflected in stock valuation.

H1 revenue in the Renewable Energy Business was ¥293 million (down 9.0% year on year), a much smaller scale compared to the Electronic & Communication Equipment Business. On the other hand, several new power sources expected to yield an IRR of 10% or more are entering the operational phase, including the Grid-Connected Battery Storage Business (Miyama City, Fukuoka Prefecture, scheduled to connect to the grid in July 2026) and an Overseas Small Hydropower Plant in Indonesia (scheduled for completion in July 2026). While the market environment is supportive, with the 7th Strategic Energy Plan promoting renewable energy expansion as a tailwind, continued attention is needed regarding the time lag between upfront development investment and monetization.

Growth Strategy

Accelerating dual-axis growth through the expansion of mass-production capacity for electronic and communication equipment and the diversification of renewable energy power sources

In the government and public sector market, where demand is expanding against a backdrop of increased national budgets, the Company is actively promoting the discovery of large-scale projects and strategic proposal activities. It is systematically advancing the securing of personnel, equipment expansion, and production system enhancement to respond to the increase in orders received, thereby building a stable supply system. Order intake in the interim period totaled ¥3,881 million, progressing steadily.

At the new Vietnam plant, which began operations in October 2025, the Company is expanding production space and enhancing equipment to strengthen its low-cost, high-quality mass-production system. Land for the construction of a second plant has already been acquired in the vicinity of the head office, aiming to respond to locally produced and consumed mass-production products and improve supply stability.

In the Grid-Connected Battery Storage Business, which is expected to achieve an IRR of 10% or more, the Company concluded a purchase agreement for a project in Miyama City, Fukuoka Prefecture in May 2026, with grid connection scheduled for July 2026. Within the subsidiary Tamagawa Energy Co., Ltd., the purchase and ordering of business land and power generation rights for the purpose of placing a construction order was completed in October 2025.

The Company aims to complete and connect to the grid the small hydropower plant project on Flores Island, East Nusa Tenggara Province, Indonesia, within July 2026. By adding overseas hydropower to its domestic solar and small wind power sources, the Company seeks to diversify its revenue sources both geographically and by power source type, thereby enhancing the overall stability of its renewable energy business.

Leveraging high-frequency technology cultivated in the communications field, the Company is strengthening its response to the semiconductor equipment market, where demand for Semiconductor Reliability Test Equipment continues to trend solidly. It is advancing research and development of proprietary products with an eye toward the introduction of next-generation systems, thereby strengthening the technological foundation for creating future demand. R&D expenses in the interim period totaled ¥112 million.

Last updated: July 17, 2026