MATSUO ELECTRIC CO.,LTD.
6969・Standard Market・Electric Appliances
Business
Matsuo Electric, founded in 1949, is an electronic components specialist operating three businesses: Tantalum Capacitor Business (approximately 62% of net sales), Micro Fuse (Current Fuse) and other Circuit Protection Device Business (approximately 35%), and Film Capacitor (approximately 4%). Its principal customer is Denso (including group companies), accounting for 37.0% of net sales, and it supplies products mainly for automotive electronics, medical devices, and lithium-ion batteries. Production is concentrated at the Fukuchiyama Plant in Kyoto Prefecture, with sales offices in Tokyo and Nagoya. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company enforces thorough quality control through integrated in-house manufacturing at its own plant (Fukuchiyama Plant), adopting a manufacture-direct-sales model that sells directly to automotive and industrial customers including Denso. The Circuit Protection Device Business accounts for 34.5% of sales but boasts a high segment profit margin of 47.1%, contributing the majority of company-wide profit. The Tantalum Capacitor Business serves as the main pillar in terms of scale, supporting sales, and the company is also promoting overseas sales channel expansion through a capital alliance with Kamaya Electric.
Company Strengths
In FY2026 (ending March 2026), the Circuit Protection Device Business achieved segment sales of ¥1,776 million against segment profit of ¥837 million (profit margin of 47.1%). Sales grew +25.5% and profit grew +43.5% year on year, expanding rapidly as the company captures increasing demand from automotive electronics and lithium-ion battery applications through its own product capabilities.
Sales to Denso (including its group companies) amounted to ¥1,904,907 thousand (37.0% of total sales), maintaining Denso's position as the largest customer with a continuing business relationship. Reflecting the progress of automotive electrification, sales to this customer increased from ¥1,719,540 thousand in the previous fiscal year, and this customer base, underpinned by years of proven quality performance, serves as a source of stable earnings.
Of the ¥138 million in R&D expenses, ¥101 million was invested in the development of ultra-low ESR Conductive Polymer Tantalum Capacitors. Building on a long track record of Tantalum Capacitor manufacturing dating back to 1959, the company continues to develop new products for automotive and overseas consumer applications. Through a capital alliance with Kamaya Electric (a third-party allotment capital increase of ¥508 million), the company also secured funds for capacity expansion investment.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥4,210 million in FY2024 (ended March 2024) and increased for two consecutive fiscal years, reaching ¥5,141 million (up 13.1% year on year) in FY2026 (ending March 2026), the highest level in the past five fiscal years. Operating profit also recovered to ¥581 million (up 18.4% year on year), approaching the ¥642 million level recorded in FY2022 (ended March 2022). The Circuit Protection Device Business led the recovery with a 25.5% increase in revenue and a 43.5% increase in profit, driven by growing demand for automotive electronics and batteries. On the other hand, due to the recording of ¥157 million in extraordinary losses related to business structure reform expenses, net income for the period was limited to ¥372 million (down 17.2% year on year). While uncertainty over US tariff policy remains as an external factor, geographic diversification is progressing through the expansion of direct overseas transactions (overseas sales ratio of 17.7%). Operating cash flow improved significantly to income of ¥782 million (compared to an outflow of ¥85 million in the previous period), and cash and cash equivalents increased to ¥807 million.
Growth Strategy
Aiming for sales of ¥10 billion in 10 years through increased production of Conductive Polymer Tantalum Capacitors and expanded sales in the automotive and overseas markets
Using funds raised through a third-party allotment of shares to Kamaya Electric (¥508 million) as a source, the company will invest ¥500 million in production equipment for Conductive Polymer Tantalum Capacitors (March 2026 to March 2027). Construction in progress increased sharply from ¥7 million in the previous period to ¥194 million, indicating that the investment is already underway.
The company is promoting expansion of its sales network for current fuses for car electronics and products for lithium-ion batteries. The sales target for this business in FY2027 (ending March 2027) is ¥2,146 million (up 20.8% year on year). Development and mass production of new automotive products are also being pursued in parallel.
In November 2025, the company decided to discontinue production of certain products, recording business structure reform expenses of ¥157 million in FY2026 (ending March 2026). By reliably executing EOL (end-of-life) measures for unprofitable product lines, the company aims to improve its manufacturing cost structure and enhance profitability. A business structure reform provision of ¥36 million remains as the period-end balance.
The final targets are sales of ¥6,000 million, operating profit of ¥800 million, operating profit margin of 13%, and ROE of 12%. Results for FY2026 (ending March 2026) were sales of ¥5,141 million, operating profit of ¥581 million, and ROE of 12.6%; sales and operating profit remain in progress toward the targets, while ROE has already achieved the target level.
The company went without dividends for two consecutive fiscal years, FY2025 (ended March 2025) and FY2026 (ending March 2026), but plans to resume dividends in FY2027 (ending March 2027) with an annual dividend of ¥15 per share (payout ratio of 12.2%). Under the basic policy of the Medium-Term Management Plan, the company has set forth a goal of "resuming dividends during the plan period," and aims to realize this in FY2027 (ending March 2027).
Last updated: July 19, 2026