ENVALITH
泉州電業株式会社 logo

SENSHU ELECTRIC CO.,LTD.

9824・Prime Market・Wholesale Trade

Official website
泉州電業株式会社 logo
SENSHU ELECTRIC CO.,LTD.9824

Business

Senshu Electric Co., Ltd. is a wholesale trading company specializing in electric wires and cables, founded in 1949. The company handles equipment wires, communication wires, power cables, general-purpose covered wires, and other electric wire products as well as electrical construction materials, and forms a group comprising 14 consolidated subsidiaries—7 domestic and 7 overseas. Its main customers span the FA (factory automation) field for industrial machinery such as semiconductor manufacturing equipment, machine tools, and automobile manufacturers, as well as the construction/electrical retail sector and the information-related equipment field. Domestically, the company operates sales offices and distribution centers in major cities across the country, and it also has overseas bases in Thailand, the Philippines, Vietnam, China, Taiwan, the United States, and other locations. In 2022, the company transitioned to the Prime Market, and its management policy sets forth sustainable growth aimed at becoming a 100-year company.

Business Model

A wholesale model that procures electric wires and cables from manufacturers and supplies them to end users on a just-in-time basis through nationwide sales offices and distribution centers. The company differentiates itself from simple price competition by offering value-added services such as proposal-based sales and processing services including wire terminal treatment. Sales fluctuations linked to copper prices are a structural characteristic, and the company aims to reduce price volatility risk by expanding sales of non-wire products and its own private-brand products.

Company Strengths

Founded in 1949, the company has a business history spanning over 75 years, and operates sales offices and distribution centers in major cities across Japan from Sapporo to Okinawa. Overseas, it holds seven consolidated subsidiaries in Thailand, the Philippines, Vietnam, China, Taiwan, and the United States, building a global supply framework. It has also continued to expand its footprint through M&A, including making Hokuetsu Denken Co., Ltd. a subsidiary in 2022.

Revenue grew for four consecutive fiscal years, from ¥92,463 million in FY2021 to ¥136,153 million in FY2024. Although FY2025 saw a slight decline to ¥135,591 million, the company achieved approximately 46.6% revenue growth over the five-year period. Operating profit also more than doubled, from ¥4,743 million in FY2021 to ¥10,349 million in FY2024, demonstrating a track record of achieving both scale expansion and improved profitability simultaneously.

As of the end of the fiscal year ended October 2025, the company held total net assets of ¥58,923 million and cash and cash equivalents of ¥31,357 million. Total net assets exceeded total liabilities of ¥52,079 million, maintaining a sound financial structure. Operating cash flow secured ¥9,436 million, and despite dividend payments of ¥2,432 million and share buybacks of ¥1,337 million, cash balances increased by ¥1,850 million.

ENVALITH's Perspective

Net sales for the interim period of FY2026 (ending October 2026) were ¥76,779 million (up 11.3% year on year), with the primary external driver being a 39.2% rise in the average copper price during the period to ¥2,009 thousand per ton, up from ¥1,443 thousand in the same period a year earlier. The interim progress rate against the full-year forecast of ¥154,000 million stood at 49.9%, broadly in line with plan and on a recovery trend from the sluggish first-year start of the medium-term plan in the prior period (progress rate of 84.7%). However, the forecast assumes continued elevated copper prices, and downside risk remains if prices were to pull back.

Operating profit for the interim period of FY2026 (ending October 2026) was ¥5,594 million (up 16.6% year on year), with the operating margin improving to 7.3% from 7.0% in the same period a year earlier. On the other hand, shipment volumes for construction and electrical retail applications have trended lower year on year due to construction delays stemming from rising material costs and labor shortages, and there is a risk that the profit-boosting effect in the second half will be limited if demand recovery in this segment is delayed. Demand recovery for semiconductor manufacturing equipment and machine tool applications is driving the profit improvement, but the sustainability of this segment depends heavily on the external environment.

On June 4, 2026, the company revised its full-year consolidated earnings forecast (net sales of ¥154,000 million, operating profit of ¥11,200 million, ordinary profit of ¥11,700 million, and net profit attributable to owners of the parent of ¥8,500 million), and raised its annual dividend forecast from ¥150 to ¥160 (interim ¥80, year-end ¥80). The company is also in the process of a share buyback (upper limit of 100,000 shares/¥600 million, with 15,900 shares acquired as of the end of May 2026), and its efforts to enhance shareholder returns and improve capital efficiency are commendable. That said, the equity ratio declined to 49.6% from 52.7% at the end of the prior fiscal year, and working capital management will be a key focus going forward amid expansion of both trade receivables and payables.

Growth Strategy

Multi-pronged growth strategy aimed at achieving the FY2027 medium-term plan targets (net sales of ¥160,000 million and ordinary income of ¥13,000 million)

Aims to increase the sales composition ratio of high-value-added products such as FA cables for semiconductor manufacturing equipment and machine tools. Demand recovery in this sector has been confirmed in the interim period of FY2026 (ending October 2026), and the company will promote margin improvement in conjunction with strengthening the control panel business and agricultural business through the opening of the Nagoya FA Center.

Continuing to strengthen sales in the Kanto/Tokyo area and expand market share in other regions. Through proposal-based sales combining new customer development with deepening of existing customer relationships, the company aims to expand its customer base while offsetting the declining trend in shipment volumes for construction and electrical distribution applications.

Aims to improve earnings stability by increasing the sales composition ratio of non-wire products and proprietary brand products that are not dependent on copper price fluctuations. Even as copper prices rise to ¥2,230 thousand per ton (as of April 2026), the company aims to lift margins through improvements in product mix.

Based on the resolution of the Board of Directors on April 24, 2026, the company is conducting a share buyback with an upper limit of 100,000 shares and ¥600 million (15,900 shares acquired as of the end of May 2026). The annual dividend forecast has been raised to ¥160 (up from ¥150 in the previous fiscal year), simultaneously promoting enhanced shareholder returns and improved capital efficiency.

Leveraging a network of 14 consolidated subsidiaries in Japan and overseas to increase the earnings contribution from overseas operations. At the Michigan, U.S. base, an impairment loss of ¥88 million was recorded in the current interim period, making profitability improvement a key challenge.

Last updated: July 17, 2026