Osaki Electric Co., Ltd.

Basic Information

Stock Code: 6644
Industry: Electrical Equipment
Category Detail: Commercial & Industrial Machinery
Prefecture: Tokyo
Establishment Year: January 1937
Listing Year: January 1962
Official Website: https://www.osaki.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Nichi Ri-Tech, Rigaku Holdings, Nippon Fine Chemical, Nippon Kogyo, Anritsu Corporation, Yokogawa Electric Corporation, Azbil Corporation, Horiba, Ltd., Hioki E.E. Corporation, JEOL Ltd., Shimadzu Corporation, Topcon Corporation, Riken Keiki Co., Ltd.

Overview

Osaki Electric Co., Ltd. is an electrical equipment manufacturer founded in 1937, boasting the top industry share in the electricity meter field and a highly reliable company with the technological capabilities to supply smart meters to all electric power companies in Japan.

Current Situation

Osaki Electric Co., Ltd. recorded consolidated sales of approximately 75.6 billion yen in fiscal 2022, maintaining its No. 1 position in the domestic market for electricity meters and measurement control equipment. In addition to technological innovations in electricity meters including smart meters, it is diversifying into new businesses such as IoT and smart locks. The real estate rental business also supports a stable revenue base. It has multiple subsidiaries at home and abroad and is advancing global expansion. Challenges include fluctuations in raw material prices and an intense competitive environment, but it aims to strengthen its competitiveness through R&D investments and service improvements. Toward 2030, it has set strategic goals of expanding smart city-related businesses and promoting DX. It is also actively contributing to local communities through sports support activities such as handball.

Trivia

Interesting Facts

Veteran company with over 70 years in the instrument industry
No. 1 market share in Japan's domestic smart meter market
Operates the powerhouse handball team 'Osaki OSOL'
Originated from the individual firm Kogyo Seisakusho at founding
Company name changed through absorption merger with founder's personal shop
Exclusive supply of smart meters to power companies nationwide
Technology-oriented company always pursuing new business ventures
Selected as BEMS aggregator by METI
Established international business foundation through diverse overseas expansions
Stable management with Watanabe family succession in presidency

Hidden Connections

Kyuden Techno Systems, jointly invested with Kyushu Electric Power, is part of the group
Products for Tohoku and Chubu Electric Power are effectively Osaki Electric-made via ODM supply
Awarded commendation as economic development cooperation company by Indonesian Embassy in Japan
Handball club establishment influenced by advice from Prince Takamatsu no miya Norihito
Headquarters in Higashigotanda Square, securing building rental income
Traditionally hires many engineering talents strong in electronic measuring instruments
Promotes regional contributions through Osaki Corporate Sports Research Grant Foundation
Actively pursuing joint technology development with related companies for smart city initiatives

Future Outlook

Growth Drivers

Ongoing expansion of smart meter demand
Growth in smart city and smart grid-related businesses
Increasing demand for energy management solutions utilizing IoT and AI technologies
Demand expansion from social infrastructure renewal toward decarbonization society
New market development domestically and internationally, strengthening global business
Establishment of stable revenue base through real estate leasing business
New development and sales expansion of advanced technology products for B2B
Growing societal needs for energy-saving and resource-saving products
Business efficiency and service sophistication through DX promotion
Expansion of demand for home IoT devices corresponding to aging society
Popularization of AI-utilizing demand forecasting and control technologies
Sustainable management addressing environmental and social challenges

Strategic Goals

Continue complete smart meter supply to all domestic power companies
Expand smart city-related sales to over 30% of total
Improve productivity by 20% through DX promotion
Reduce CO2 emissions by 30% aiming for carbon neutrality
Strengthen overseas market entry for energy management systems
Expand new business sales to 20% of total
Expand market share for IoT products for elderly
Achieve sustainable product design and over 50% recycling rate
Continue and strengthen local community contribution activities
Increase number of overseas affiliated group companies to 15 or more

Business Segments

Measuring Instruments for Electric Utilities

Overview

Supplies measuring instruments such as smart meters to all domestic electric power companies.

Competitiveness

Comprehensive supply network to all domestic and international power companies

Customers

Hokkaido Electric Power
Tokyo Electric Power
Hokuriku Electric Power
Shikoku Electric Power
Kansai Electric Power
Chugoku Electric Power
Kyushu Electric Power
Okinawa Electric Power

Products

Smart Meters
Electronic Electricity Meters
Instrument Transformers
Centralized Automatic Meter Reading Systems

Industrial Power Management Systems

Overview

Provides systems to support optimization of power consumption.

Competitiveness

Advanced AI utilization and data analysis technology

Customers

Large Factories
Building Management Companies
Commercial Facilities
Public Facilities

Products

Demand Control Devices
Energy Management Systems
AI Power Management Tools

Communications and Network Equipment

Overview

Provides communication infrastructure linked to measuring instruments.

Competitiveness

In-house developed optical communications and control technology

Customers

Power-Related Companies
Telecommunications Companies
Meter Reading Service Companies

Products

Optical Communication Equipment
Communication Control Units
Meter Reading System Equipment

Real Estate Leasing Business

Overview

Conducts leasing business centered in Shinagawa Ward, Tokyo.

Competitiveness

Stable revenue base business

Customers

Corporate Tenants
Parking Users
Real Estate Investors

Products

Office Building Leasing
Parking Lot Operations
Rental Apartment Management

Instrument Services and Maintenance

Overview

Supports operation and improved reliability of measuring instruments.

Competitiveness

High-quality services by specialized technicians

Customers

Electric Utilities
Manufacturing Industry
Public Organizations

Products

Measuring Instrument Inspections
Maintenance Services
Data Analysis Support

Smart Home-Related Equipment

Overview

Provides innovative living environment equipment for smart cities.

Competitiveness

Advanced IoT technology application capabilities

Customers

Housing Manufacturers
Real Estate Developers
System Integrators

Products

Smart Lock OPELO
Wearable Terminals
Home IoT Integration Systems

Power Instruments for Overseas Markets

Overview

Products tailored to local markets in collaboration with overseas subsidiaries.

Competitiveness

Global expansion leveraging technological strengths

Customers

Southeast Asia Power Companies
European Power Operators

Products

Smart Meters
Instrument Transformers
Meter Reading Systems

Competitive Advantage

Strengths

Overwhelming share in the domestic electricity meter market
High-precision and reliable product development capabilities
Active adoption of IoT and smart technologies
Strong transaction relationships with power companies nationwide
Brand trust built on long history
Stable revenue base through diversification
Network of globally deployed subsidiaries
In-house completion from production to service provision
Advanced AI-utilizing power management solutions
Comprehensive maintenance and service system for measuring instruments
Entry into new technology fields such as smart locks
Strong ties and social contributions with local communities
Enhanced social recognition through handball team
Stable leadership from management team
Active technology partnerships and international collaborations

Competitive Advantages

Industry-leading position supplying smart meters to all domestic power companies
High customer satisfaction through advanced measurement technology and stable supply system
Provides next-generation energy management systems combining IoT and AI
Integrated deployment of diverse technologies and services via group subsidiaries
Solid foundation in the industry built on long-term transaction relationships
Competitive edge in peripheral equipment like high-precision transformers, offering total solutions
Aggressive business expansion targeting not only Japan but also overseas markets
Success in creating new markets with smart locks and wearable technologies
Highly evaluated for specific initiatives toward sustainability like global warming prevention
Established diverse sales channels and customer networks
Receiving policy support such as selection as BEMS aggregator by METI
Accelerating new product development through proprietary R&D and technology partnerships
High financial reliability as a Tokyo Stock Exchange Prime Market-listed company
Strong community ties enhancing corporate brand value
Improved corporate social credibility through handball club activities

Threats

Risk of demand fluctuations due to regulatory changes in the domestic power market
Market share pressure from intensifying competition with overseas companies
Potential impact on earnings from raw material price fluctuations
Risk of delays in responding to rapid technological innovations
Sales instability due to fluctuations in customers' smart meter adoption pace
Impact of natural disasters or social instability on production and supply
Information security risks leading to data leaks or service disruptions
Rising product development costs due to stricter environmental regulations
Intensifying price competition from new entrants
Potential impact of international political situations on overseas subsidiaries' performance
Decline in replacement investment demand due to obsolescence of smart meter technology
Increased development burden from diversifying customer needs

Innovations

2022: AI-Based Power Supply-Demand Optimization System Development

Overview: Introduced a system utilizing AI technology to reduce power costs and improve efficiency.
Impact: Improved power usage efficiency for customer companies by approx. 15%

2023: Market Launch of Smart Lock OPELO

Overview: Developed keyless smart lock products and expanded into the housing market.
Impact: Opened new customer segments, achieving 1.8 billion yen in sales

2021: Launch of IoT-Compatible Wearable Terminal Watch Series

Overview: Supports employee safety management with business IoT devices.
Impact: Contributes to improved safety in manufacturing sites

2020: Renewal of Smart Meter Communication Control Units

Overview: Developed control units with enhanced communication speed and reliability to promote replacements.
Impact: Reduced communication failure rate by 20%, cutting maintenance costs

2024: Launch of DX-Promoted Business Efficiency Program

Overview: Accelerated efficiency by introducing RPA and AI into internal operations.
Impact: Reduced administrative work time by 30%, improving productivity

2023: Enhanced Energy Management for Smart Cities

Overview: Contributes to power management for large-scale cities via IoT platform.
Impact: Expanded new orders in smart grid projects

2024: Development of New Demand Control Devices

Overview: Released new products with improved energy-saving performance and operability.
Impact: Received high evaluations from existing customers, increasing sales

2022: Advanced Optical Communication Technology

Overview: Introduced latest technology into optical communication devices for measuring instruments.
Impact: Significantly reduced communication delays, improving reliability

Sustainability

Promotion of energy-saving and resource-saving product designs
Establishment of internal systems for waste reduction and recycling promotion
Contribution to global warming prevention through smart meter supply
Strengthened R&D of renewable energy-related technologies
Promotion of user-friendly product designs for elderly and disabled people
Continuous participation in local environmental protection activities
Business operations aimed at achieving carbon neutrality