TOMITA ELECTRIC CO.,LTD.
6898・Standard Market・Electric Appliances
Business
Tomita Electric Co., Ltd., founded in 1960, is a specialized manufacturer of electronic components and materials, with its core business centered on the manufacture and sale of Ferrite Core (Magnetic Materials) and Coils & Transformers. In addition to its domestic manufacturing base (Tottori), the company operates a subsidiary, Zhuhai Fu Tian Electronics Co., Ltd., in Zhuhai City, Guangdong Province, China, and conducts production and sales globally. Its major customers span the EV, industrial equipment, semiconductor manufacturing equipment, medical devices, and telecommunications infrastructure fields. The company also holds a domestic Real Estate Leasing Business as a stable source of income. It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the Electronic Components & Materials Business, the company mass-produces in-house developed ferrite materials (the 2G5 and 2H4 series for EVs, the B2C series for semiconductor manufacturing equipment, etc.) at its China factory and sells them to electronic equipment manufacturers both domestically and overseas. Research and development is handled by the domestic General Technology Department, which provides integrated support from material development through design and prototyping. The Real Estate Leasing Business is a mature model requiring no additional investment; in FY2026 (ending March 2026) it recorded net sales of ¥67 million and segment profit of ¥51 million (a profit margin of approximately 76%), supplementing the loss in the core business.
Company Strengths
The company has already launched numerous proprietary materials to market, including the 2G5/2H4 series for EVs, the B2C series for semiconductor manufacturing equipment, the 2N series—among the world's top-class materials for automotive, medical, and communications applications—and the 6N series for RFID. R&D expenditure totaled ¥42 million in FY2026, and the company maintains an in-house integrated system covering everything from material development to design and prototyping.
At the end of FY2026, the equity ratio reached 85.4% (target: 80% or higher). Net assets stood at ¥3,981 million, while liabilities remained at just ¥678 million against total assets of ¥4,659 million. This near debt-free financial structure allows the company to maintain financial stability even amid economic fluctuations or capital investment phases.
The Real Estate Leasing Business recorded net sales of ¥67 million and segment profit of ¥51 million in FY2026, achieving a profit margin of approximately 76%. While the Electronic Components & Materials Business posted a segment loss of ¥112 million, this mature business—requiring no additional investment—serves as a stable source of cash generation that complements overall earnings.
ENVALITH's Perspective
Performance Trend
FY2022 and FY2023 were periods of stable earnings, with net sales of ¥1,829 million to ¥2,004 million and operating profit exceeding ¥100 million. However, in FY2024 and FY2025, due to external factors such as prolonged customer inventory adjustments and China's economic slowdown, net sales declined to ¥1,422 million–¥1,492 million and operating losses widened. In FY2026, net sales reached ¥1,603 million with an operating loss of ¥61 million, showing early signs of bottoming out. In Q1 of FY2027 (ending January 2027) (February–April 2026), net sales were ¥413 million (up 26.0% year on year) and the cost of sales ratio was 70.2% (an improvement of approximately 15 points year on year), confirming a rapid turnaround in the profit structure. The full-year forecast calls for net sales of ¥1,865 million (up 16.4% year on year) and operating profit of ¥66 million, indicating an expected return to profitability in the core business. Steady demand related to EVs in China and improvement in domestic inventory adjustments are the main external drivers.
Growth Strategy
New customer development in growth fields such as EVs, telecommunications, and medical devices, combined with cost reduction and automation at the China plant to transform the profit structure
Demand for ferrite cores for EV-related in-vehicle applications in the Chinese market has remained firm, and net sales in the Electronic Components & Materials Business for the first quarter of FY2027 (ending January 2027) reached ¥397 million (up 27.5% year on year), achieving a substantial increase in revenue. The company will continue to expand product supply to the Chinese EV market.
The prolonged inventory adjustment by domestic customers has improved, and orders have begun to recover. The recovery in net sales in the first quarter of FY2027 (ending January 2027) reflects this trend, and the company will establish a system to continuously capture the expansion of orders in the domestic market.
Through cost reduction and the promotion of automation at the China plant, the cost of sales ratio in the first quarter of FY2027 (ending January 2027) improved by approximately 15 percentage points, from 85.0% in the same period of the previous year to 70.2%. Establishing sustained improvement in the cost ratio is the most critical issue toward achieving full-year operating profit of ¥66 million (FY2027, ending January 2027).
The company is promoting new customer development for growth fields including electric vehicles, information and communications, medical devices, and energy-saving equipment. Leveraging its track record of developing multiple proprietary ferrite material series, it aims to improve profitability by expanding the supply of high-value-added products.
Last updated: July 17, 2026