SENSHU ELECTRIC CO.,LTD.

Business Details

The Senshu Electric Group is a specialized wholesale trading company for electric wires and cables. It sells wires and cables such as equipment wires, communication wires, power cables, and general-purpose insulated wires, as well as electrical installation materials and information-related equipment. Customers are centered on the construction and electrical retail sectors, but also extend to the industrial machinery field, including semiconductor manufacturing equipment, machine tools, and automotive applications. Over 90% of net sales are domestic, and over 90% of tangible fixed assets are located in Japan.

Recent Overview

Higher sales and profit in H1 driven by 39% rise in copper prices and recovering demand for industrial machinery

In H1 of FY2026 (ending March 2026) (November 2025 to April 2026), the average copper price during the period rose 39.2% to ¥2,009 thousand/ton from ¥1,443 thousand/ton in the same period of the previous year. While shipment volumes for the construction and electrical retail sectors trended downward due to construction delays caused by rising material costs and labor shortages, demand for semiconductor manufacturing equipment and machine tools recovered, resulting in net sales of ¥76,779 million (up 11.3% year on year), operating income of ¥5,594 million (up 16.6%), and net income attributable to owners of parent of ¥4,199 million (up 23.3%). The company also recorded a gain of ¥555 million on the sale of investment securities as extraordinary income, while recognizing an impairment loss of ¥88 million on business assets in Michigan, U.S. The full-year earnings forecast was revised upward to net sales of ¥154,000 million (up 13.6% year on year) and ordinary income of ¥11,700 million (up 26.2%).

Key Products

Growth Drivers

• Strengthening sales capability through proposal-based sales, development of new customers, and deepening relationships with existing customers
• Expansion of sales in the industrial machinery field driven by continued recovery in demand for semiconductor manufacturing equipment and machine tools
• Improved profit margins through an increased share of high-value-added products such as FA cables for industrial machinery
• Strengthening sales in the Kanto/Tokyo area and expanding market share in other regions
• Strengthening the control panel and agriculture businesses through the opening of the Nagoya FA Center
• Expanded global operations through strengthened collaboration with overseas consolidated subsidiaries
• Reducing exposure to copper price volatility by expanding sales of non-wire products and private-brand products
• Promoting structural reform based on the medium-term management plan (targets for FY2027 (ending March 2027): net sales of ¥160,000 million, ordinary income of ¥13,000 million)
• Improved capital efficiency and enhanced shareholder returns through share buybacks (up to 100,000 shares / ¥600 million)

Risks

• Risk of fluctuations in copper prices, the main raw material for electric wires (average of ¥2,009 thousand/ton during H1 of FY2026 (ending March 2026), up 39.2% year on year)
• Continued construction delays and downward trend in shipment volumes due to rising material costs and labor shortages in the construction and electrical retail sectors
• Uncertainty regarding the sustainability of the recovery in demand for semiconductor manufacturing equipment and machine tools
• Risk of economic downturn due to the impact of U.S. trade policy (tariffs, etc.) and continued price increases
• Uncertain business environment due to volatility in financial and capital markets
• Pressure on profit margins from increases in selling, general and administrative expenses (personnel costs, freight, etc.)
• Risk of declining profitability at overseas locations (such as Michigan, U.S.), with an impairment loss of ¥88 million recorded in H1
• Impact on financial soundness from the decline in the equity ratio (from 52.7% at the end of FY2025 (ended March 2025) to 49.6% at the end of H1 of FY2026 (ending March 2026))