ENVALITH
ダイコー通産株式会社 logo

DAIKO TSUSAN CO.,LTD.

7673・Standard Market・Wholesale Trade

Official website
ダイコー通産株式会社 logo
DAIKO TSUSAN CO.,LTD.7673

Business

DAIKO TSUSAN CO.,LTD. is a specialty trading company founded in 1975 that serves the CATV and information/communications network sectors. Its core products are Cables (optical fiber cables, coaxial cables, LAN cables, etc.), Materials (connection materials, overhead line fittings, etc.), and Equipment (trunk line equipment, communications equipment, etc.), which it sells through 13 sales offices nationwide organized into four blocks: Shikoku-Kyushu, Eastern Japan, Western Japan, and Tokai-Hokuriku. The company sources from approximately 450 suppliers and sells to approximately 2,700 customers, serving a broad customer base including telecommunications construction contractors, telecommunications carriers, electric power companies, and government agencies. The number of products handled reaches approximately 43,000 items, and the company is capturing demand from social infrastructure development, such as the shift to FTTH by CATV stations and the digitalization of disaster prevention administrative radio systems. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

A wholesale model in which products are purchased from approximately 450 manufacturers in Japan and overseas and sold to approximately 2,700 customers. Approximately 70% of transactions are handled via direct shipment from suppliers to customers, which suppresses inventory risk while a nationwide logistics network (3 sites in Matsuyama City and 1 site in Tokyo, totaling 4 distribution centers, plus 11 warehouses) accommodates large-volume orders. Price competitiveness is secured through overseas manufacturing outsourcing of general-purpose products (In-house Planned Products (Cost Leadership Products)) and large-lot purchasing from specific manufacturers, with maintaining and improving the gross profit margin managed as the most critical management indicator.

Company Strengths

The company deals with a wide range of business partners, comprising approximately 450 suppliers and approximately 2,700 customers, resulting in low dependence on any specific supplier or customer. The securities report discloses that no single customer accounts for more than 10% of sales, enabling stable business performance amid changes in the business environment and flexible business development.

The number of products handled reaches approximately 43,000 items, with about 70% of transactions handled through direct shipment from suppliers. The company has built a system that enables it to provide products optimally suited to customer needs in a timely manner without being constrained by the intentions of specific manufacturers, with product procurement capability and proposal capability serving as the source of competitive advantage.

The company owns four logistics centers in total—three locations in Matsuyama City, Ehime Prefecture and one in Tokyo—along with 11 warehouses nationwide. As of the end of the 50th fiscal period, against interest-bearing debt of ¥739,190 thousand, cash and deposits stood at ¥7,399,468 thousand, maintaining a virtually debt-free management structure, with total net assets reaching ¥8,411,982 thousand.

ENVALITH's Perspective

In FY2026 (ending May 2026), gross profit margin improved to 14.9% from 14.3% in the prior period, and operating profit margin also rose to 5.8% (from 5.4% in the prior period). This is mainly attributable to mix improvement resulting from a decrease in price-sensitive orders, and is largely dependent on external factors (changes in order composition). The forecast for FY2027 (ending May 2027) anticipates continued profitability improvement, with gross profit of ¥3,360 million (up 2.4% year on year) and operating profit of ¥1,373 million (up 8.5% year on year); however, the underlying structure whereby profit margins remain susceptible to fluctuation depending on the trend in large-scale order intake has not changed, and continuous monitoring is required.

The East Japan Block drove overall company growth in FY2026 (ending May 2026), with net sales of ¥8,454 million (up 9.5% year on year) and gross profit of ¥1,189 million (up 9.5% year on year). This result reflects the combination of large-scale order intake for fire and disaster communication equipment, disaster prevention administrative radio systems, and outdoor communication facilities, together with an increase in day-to-day transactions; however, large-scale projects inherently carry the risk of concluding within a single fiscal year. The fact that the forecast for cumulative net sales in the second quarter of FY2027 (ending May 2027) is set at a 9.2% year-on-year decrease suggests an emerging falloff in orders, and the feasibility of the full-year recovery scenario should be viewed with caution.

In terms of the market environment, demand for optical transmission line and FTTH development as well as replacement of disaster prevention administrative radio systems, based on the "Regional Future Strategy" (formerly the "Digital Garden City Nation Vision"), is expected to continue over the medium term, and the company's business environment is favorable. On the other hand, as an external factor, there is a risk that rising crude oil and naphtha prices due to worsening conditions in the Middle East could push up procurement costs, which could squeeze profit margins if price pass-through proves difficult. Additionally, in a phase of expanding infrastructure investment, entry by competing trading companies is also anticipated, making the maintenance of price competitiveness as an independent player a challenge.

Growth Strategy

Pursuing sustainable growth centered on expanding the customer base, broadening the product lineup, and strengthening logistics in the Eastern Japan region

Focus on winning orders for FTTH projects and optical transmission line projects in order to capture demand for telecommunications infrastructure development under the "Regional Future Strategy." In FY2026 (ending March 2026), outdoor telecommunications equipment projects progressed steadily in the Eastern Japan and Western Japan blocks, and Cables sales grew 2.8% year on year.

Following the conclusion of the digitization of local government disaster prevention systems, work to acquire replacement projects in anticipation of replacement demand due to aging of equipment at municipalities that completed initial digitization first, as well as the termination of certain radio frequency band services. In FY2026 (ending March 2026), disaster prevention administrative radio projects progressed favorably in the Eastern Japan block.

Promote the accumulation of routine small-lot transactions and the development of new customers in order to reduce dependence on large-scale projects. In FY2026 (ending March 2026), routine transactions increased in the Eastern Japan block, contributing to the stabilization of sales and profit. In parallel, the company is also expanding products capable of demonstrating cost leadership.

Improve SG&A expense efficiency by strengthening the in-house logistics network and developing and securing human resources, while suppressing the risk of non-performing receivables through thorough credit management and receivables management. SG&A expenses in FY2026 (ending March 2026) increased to ¥2,017 million (from ¥1,929 million in the previous fiscal year), but growth in gross profit (up 5.9%) absorbed this increase, and the operating profit margin improved.

Last updated: July 17, 2026