ENVALITH
コーセル株式会社 logo

COSEL CO.,LTD.

6905・Prime Market・Electric Appliances

Official website
コーセル株式会社 logo
COSEL CO.,LTD.6905

Business

Cosel Co., Ltd. was founded in 1969 and is headquartered in Toyama City as a specialized manufacturer of DC stabilized power supplies. The company offers four product categories—Unit Power Supplies, On-board Power Supplies, Noise Filters, and PRBX Products—supplying a wide range of industries including semiconductor manufacturing equipment, factory automation (FA) equipment, medical devices, communication equipment, railways, and aviation. The Group consists of 21 subsidiaries including the company itself, and operates a global manufacturing and sales structure across five segments: Japan, North America, Europe, Asia, and China. In April 2024, the company entered into a capital and business alliance with LITE-ON TECHNOLOGY CORPORATION, which became its largest shareholder. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company manufactures at three sites in Japan, Europe, and China, and supplies DC stabilized power supplies through a sales network spanning five regions including North America and Asia. By focusing on highly versatile catalog products, it achieves both development efficiency and inventory control, while realizing premium pricing in markets demanding high reliability, such as semiconductor manufacturing equipment and medical devices. The target consolidated operating margin is 15% or higher, and the company has previously achieved 16.7% (FY2024, ended May 2024).

Company Strengths

The equity ratio at the end of FY2025 (ended May 2025) was 93.1% (86.6% at the end of the previous fiscal year), and cash and cash equivalents stood at ¥26,552 million (up ¥11,158 million from the previous fiscal year-end). The financial base was further strengthened through a third-party allotment of new shares (¥7,940 million) and disposal of treasury stock (¥3,608 million) in connection with the capital and business alliance with LITE-ON. The company maintains a no-debt management policy and aims to fund capital expenditures and R&D with its own funds.

The company operates three manufacturing bases in Japan, Europe (Sweden and Germany), and China, along with a five-region sales network including North America and Asia. In FY2025 (ended May 2025), sales by region were ¥16,523 million in Japan, ¥6,263 million in Europe, ¥2,667 million in Asia, and ¥1,600 million in North America, reflecting a diversified regional balance that avoids excessive dependence on any single region.

Under a quality management system based on ISO9001 (obtained in 1993) and ISO14001 (obtained in 1999), the company supplies products to fields requiring high reliability, such as semiconductor manufacturing equipment, medical devices, railways, and aviation. Through the continuous launch of standard-compliant products, including the UMCS Series, UMPS Series, and UMA Series that comply with medical electrical equipment standards, the company maintains its position in markets with high barriers to entry.

ENVALITH's Perspective

The majority of the ¥3,406 million net loss attributable to owners of the parent for FY2026 (ending May 2026) stems from a ¥3,644 million loss on liquidation of an affiliate (extraordinary loss) associated with the execution of the share transfer agreement for Powerbox International AB. The underlying business performance—operating loss of ¥695 million and ordinary income of ¥267 million—reflects the heavy burden of fixed costs resulting from a 7.4% decline in revenue, and represents a phase where improvement is expected alongside a recovery in sales, rather than a structural problem. That said, the improvement in profitability of the European business (Europe segment loss of ¥723 million) will be a key point to monitor in the next fiscal period.

Order intake for FY2026 (ending May 2026) rebounded sharply to ¥27,841 million (up 59.8% year on year), with the fiscal year-end order backlog rising to ¥12,810 million (up 39.7% year on year), confirming an actual recovery in demand centered on semiconductor manufacturing equipment-related products. The company forecasts full-year FY2027 (ending May 2027) net sales of ¥28,875 million (up 15.3% year on year), operating income of ¥1,335 million, ordinary income of ¥1,539 million, and net income of ¥1,604 million; given the accumulated order backlog, the probability of achieving this forecast is relatively high. However, external factors such as the materialization of US tariff impacts and the situation in the Middle East remain sources of uncertainty regarding demand that warrant continued attention.

Under the 11th Medium-Term Management Plan, the company raised the floor level of the dividend on equity (DOE) ratio from 3.5% to 4.5%, and set the annual dividend for FY2027 (ending May 2027) at ¥60 (up ¥5 year on year). Even in the period in which a net loss was recorded, the company maintained an annual dividend of ¥55, and the continuity of its progressive dividend policy is underpinned by the strength of its financial base. On the other hand, the decline in profit contribution from the European business following Powerbox's deconsolidation, and the timing of the realization of fixed cost reduction effects, are variables to watch that will influence the sustainability of dividends going forward.

Growth Strategy

While converting the sharp recovery in orders into revenue, the company is improving its earnings structure through the LITE-ON partnership, expanded new product sales, and restructuring of the European business

Through collaboration with LITE-ON TECHNOLOGY CORPORATION, the company is promoting expanded sales of COSELSYNC. brand products and LITE-ON Products across all bases in Japan, North America, Europe, and Asia. By expanding the product lineup, the company strengthens its ability to respond to customer needs, aiming to expand sales through both deepening relationships with existing customers and acquiring new customers.

The PDA Series, MU Series, DCS1400B, UMHA120F, and other products will be launched in FY2026 (ending May 2026). By expanding the product lineup for a wide range of applications including FA control equipment, semiconductor manufacturing equipment, and medical devices, and by strengthening sales proposal activities to key customers, the company aims to accelerate the conversion of its order backlog (¥12,810 million) into sales.

On May 20, 2026, the company entered into a share transfer agreement for Powerbox International AB, and deconsolidation is expected to be completed during the next fiscal year. The Europe segment recorded a loss of ¥723 million in FY2026 (ending May 2026), and the separation of Powerbox is expected to improve the profitability structure of the European business. The company will continue its European sales structure centered on COSEL EUROPE GmbH.

Under the 11th Medium-Term Management Plan, the DOE floor level has been raised from 3.5% to 4.5%, and the annual dividend for FY2027 (ending May 2027) has been set at ¥60 (an increase of ¥5 year on year). Even during the earnings recovery phase, the company will implement stable and continuous shareholder returns, aiming to improve capital efficiency and secure investor confidence.

Last updated: July 17, 2026