7510.T

• Company Overview

  • たけびし is a Kyoto-based technical trading firm that carries products from ~1,600 partner companies, centered on Mitsubishi Electric products. Its core strength is providing total integrated solutions combining product sales with in-house software development and system integration.
  • The company will celebrate its 100th founding anniversary in 2027, and has created a commemorative logo reflecting its history and future growth ambitions.
  • It operates 7 branches and 1 sales office across Japan, with 5 domestic group companies and 4 overseas group companies, including Le Champ, which operates across 8 countries and 16 locations in Southeast Asia and South Asia.
  • Prior full year revenue was 101 billion yen, with 23% of revenue coming from overseas operations.

• 2026 First Half (Second Quarter) Actual Results

  • First half revenue hit 52.2 billion yen, operating profit hit 2 billion yen, ordinary profit hit 2.2 billion yen, and net profit hit 1.5 billion yen — all all-time record highs for the first half, driven by expansion of the company's prioritized medical business.
  • Operating profit increased 550 million yen year-over-year: 810 million yen in gains from sales volume growth (led by Le Champ's device business, asbestos analysis revenue from the acquired Urban Eco Consulting, and expanding medical sales) were partially offset by a 10 million yen negative forex impact, 30 million yen in higher inventory depreciation and valuation losses, and a 230 million yen increase in selling, general and administrative expenses including growth investments.

• Mid-Term Management Plan: T-Link1369

  • The 3-year plan launched in 2023 aims to hit 130 billion yen in revenue by the 100th anniversary in FY2027. The plan outlines four core growth strategies:
  1. Global: Expand device business centered on Southeast Asia and India, convert Le Champ's four existing Indian locations to local subsidiaries to enable local currency transactions for new business capture, and reorganize/consolidate directly operated Hong Kong, Shanghai and Thai locations to improve operational efficiency and speed up decision making. Le Champ will focus on expanding local customer business, while the consolidated direct locations will focus on strengthening support for Japanese clients.
  2. Medical: Grow the medical business centered on radiation cancer therapy and diagnostic devices, expand the traditional Kansai-region commercial area to the Chugoku and Shikoku regions, and capture demand for devices targeting neurosurgery and cardiovascular care to broaden the business.
  3. Automation: Capture growing factory automation demand driven by labor force decline, and capture capital investment growth in semiconductors and renewable energy. Leverage the company's strength in operational technology (OT) for manufacturing, partner with IT vendors with upper-level system strengths to advance smart factory initiatives, and prioritize expansion into the food industry.
  4. Original In-House Products: This unique business for a trading company includes two core products: the long-standing DeviceExplorer OPC Server software, which is adding generative AI connectivity and European standard compliance, with dedicated sales staff assigned to India and North America to expand overseas sales; and the compass subscription mobile shop application, which is being expanded to additional B2B use cases including emergency check-in and daily work report systems.

• Business Model Transformation Toward a General Trading Company

  • The company is developing four new transformation areas separate from core growth strategies, targeting 5 billion yen in revenue from these areas in FY2026: Mobility (develop AGV/AMR demand and expand office cleaning robot sales), Energy Solutions (expand existing solar PV systems and add new storage battery and related component sales), and DX Promotion (re-prioritize OT security solutions, as demand has grown significantly due to rising ransomware attacks after low initial demand years ago).

• Financial and Sustainability Practices

  • Growth Investment: The company has completed 3 M&As in the last 5 years, and will continue pursuing active domestic and cross-border M&A for expansion and synergy. It is also conducting 20-year first core system refresh (planned cutover next fiscal year) and building a new DX-enabled warehouse (completion next fiscal year) to strengthen logistics and demonstrate DX product capabilities for clients.
  • Shareholder Returns: The company follows a progressive dividend policy, targeting a payout ratio of at least 40% and a return on equity of at least 4% when the mid-term plan is completed. It increased the full year dividend from an initial 66 yen to 68 yen following upward earnings revision.
  • Sustainability: The company opened a solar power plant in Shiga Prefecture that covers 20-30% of headquarter power use, and installed solar carports at some branch offices. It will continue environmental investment and offer in-house developed expertise to clients for environmental business expansion. The company also conducts regional contribution activities and internal engagement initiatives that have reduced employee turnover.

• Full year 2026 revenue is upwardly revised from an initial 102 billion yen to 104 billion yen, with operating profit targeted at 3.7 billion yen and ordinary profit targeted at 4 billion yen. The second half forecast is moderately lower than the initial plan, to account for risks including delayed FA equipment demand recovery.
• The mid-term plan target of 130 billion yen in revenue by FY2027 remains in place, though current FY2026 planned revenue of 104 billion yen leaves a large gap to the final target, driven by weak performance in the core industrial equipment systems segment, with growth from new areas on track to continue.
• The new transformation business areas are targeting 5 billion yen in revenue for FY2026.

1. Industrial Equipment Systems: FA equipment performance was depressed due to prolonged inventory adjustment, while equipment systems grew on manufacturing capital investment and automation demand, bringing the overall segment performance flat year-over-year. For full year 2026, the segment expects a sales decline due to prolonged FA inventory adjustment and a pullback from last year's large equipment systems orders. This segment contributed 40% of total revenue in the prior full fiscal year.
2. Semiconductors & Devices: Sales grew significantly driven by Le Champ's demand development in India's smart meter component business. For full year 2026, the segment expects continued solid growth led by Le Champ, plus growing domestic ODM security camera business driven by rising security awareness. This segment contributed 33% of total revenue in the prior full fiscal year.
3. Social & Information Communications: Sales grew strongly, led by surging demand for radiation cancer therapy devices and rising non-destructive testing device demand tied to growing defense sector needs. For full year 2026, the segment expects a mild second half decline due to concentration of cancer therapy device orders in the first half, but overall performance will remain solid, driven by expanding diagnostic device sales and expected pull-in LED lighting demand ahead of 2027 fluorescent production/trade restrictions in Japan. This segment contributed 27% of total revenue in the prior full fiscal year.

• Prolonged inventory adjustment for FA equipment in the industrial equipment systems segment has led to sluggish sales performance, creating a large gap between current year results and the mid-term plan's final revenue target.
• Delayed recovery of FA equipment demand has forced a moderate downward revision to the second half 2026 forecast.
• Foreign exchange fluctuations created a 10 million yen negative impact on first half operating profit.
• Higher inventory depreciation and valuation losses pressured first half profits.

No Q&A section was included in the provided transcript.