Trace on Product

Basic Information

Stock Code
6696
Industry
Electric Machinery
Category Detail
Information & Communication Equipment
Prefecture
Tokyo
Establishment Year
January 1995
Listing Year
August 2017
Official Website
http://www.pthree.co.jp/
TSE Information
TSE Information
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Other Companies
Nisshinbo Holdings, Yukes, POPER, Saxsa, OKI, Nakayo, Aiphone, Sanei Electronics, Yokowo, Icom, Allied Telesis Holdings, Nippon Avionics, Media Research Institute

Overview

Trace on Product is an electric machinery manufacturer founded in 1995 and based in Tokyo. It specializes in STBs and communication equipment, holding high technological expertise in the information equipment industry.

Current Situation

Based on the latest public information, Trace on Product is expanding its performance centered on STBs (set-top boxes). It possesses competitiveness in the information and communication equipment industry, with manufacturing and sales of communication and network equipment as its main business. Headquartered in Tokyo, it has built a stable growth foundation since listing on the Tokyo Stock Exchange in 2017. It is also focusing on developing new markets such as wearable devices and has strengths in embedded software development. In a fiercely competitive environment with rivals, long-term customer relationships and technological sophistication serve as key differentiators. On the environmental front, it is promoting sustainable manufacturing processes and waste reduction, while advancing management mindful of the SDGs. Moving forward, product diversification and sales growth through IoT and 5G technology deployment are anticipated, with increasing communication demand domestically and internationally positioned as growth drivers. Furthermore, while addressing challenges in product quality improvement and cost efficiency, it plans to acquire new customers and invest in technology.

Trivia

Interesting Facts

  • One of the few independent specialist STB manufacturers in Japan
  • Company name derives from 'Trace on Product' (product tracking and management technology)
  • Compact communication modules for wearable devices hold domestic patents
  • Unique technical collective with many members experienced in IT industry software development
  • Advanced technology research lab established at Tokyo head office to drive innovation
  • Secures stable demand in the SME market
  • High evaluations for communication equipment customization capabilities
  • Management emphasizing trust-based relationships with long-term customers
  • Maintains consistent manufacturing system for communication-related products since founding
  • Superior transportation access in central Tokyo area boosts recruitment competitiveness
  • Realizes multi-product integration via proprietary platform
  • Strength in embedded software development since inception
  • Active participation in industry technical exchange events
  • Expanding share as a specialist in small to medium communication equipment
  • 'TraceNet' brand has strong reputation in the industry

Hidden Connections

  • Some major clients participate in Tokyo-led smart city projects
  • Strengthens collaboration through technical exchange meetings with related stock companies
  • Contributes to regional ICT technological innovation via Tokyo industrial associations
  • Former major electronics manufacturer executives involved as technical advisors
  • Multiple projects underway with adjacent industry software companies
  • Track record of OEM supply and joint development with some competitor manufacturers
  • Supplies equipment to Tokyo-related industry-academia collaboration programs
  • Indirect cooperation in developing teaching materials and equipment for STEM education in elementary and junior high schools

Future Outlook

Growth Drivers

  • Expansion of communication demand from 5G and 6G transition
  • Expansion of network equipment demand from IoT proliferation
  • Increasing health-conscious demand in the growing wearable market year by year
  • New business creation from diversification of embedded software development
  • Increased ICT investments led by government in smart cities, etc.
  • New product development from rising demands for SDGs and environmental considerations
  • Ongoing demand from promotion of IT adoption in SMEs
  • Expected growth in communication equipment demand in overseas markets
  • Increase in linked equipment from expansion of cloud service usage
  • Rising needs for communication security enhancements
  • Improved cost efficiency through technological innovation
  • Expansion of ICT introduction support to new industries

Strategic Goals

  • Achieve 20% STB market share domestically and internationally
  • Launch 5 new wearable device product lines
  • Reach 2.5 billion yen in embedded software business sales
  • Achieve carbon neutrality across entire product lineup
  • Establish technological leadership in IoT communication equipment
  • Secure long-term stable revenue through diverse customer base
  • Overseas market sales ratio of 15% or more
  • Maintain R&D expenses at 10% or more of annual sales
  • Improve CSR evaluations through strengthened regional community collaboration
  • Expand employee diversity promotion and engineer training systems

Business Segments

Equipment for Broadcasting Operators

Overview
Provides equipment necessary for video distribution to broadcasting operators.
Competitiveness
High reliability and customization capabilities
Customers
  • Cable TV stations
  • Satellite broadcasters
  • Internet providers
  • Telecom carriers
Products
  • STB (Set-Top Box)
  • Content delivery terminals
  • Broadcast receiving equipment

Communication Network Equipment

Overview
Provides network products for telecom operators and corporations.
Competitiveness
Robust security features and advanced control technology
Customers
  • ISPs
  • Corporate network operators
  • Telecom infrastructure operators
  • Government communication divisions
Products
  • Routers
  • Switching equipment
  • Network management software

Embedded Software Development

Overview
Undertakes custom embedded software development for various industries.
Competitiveness
High development expertise and rapid response capabilities
Customers
  • Electrical equipment manufacturers
  • Mobile device manufacturers
  • Industrial machinery manufacturers
  • Automotive-related companies
Products
  • Embedded firmware
  • Control software
  • Communication protocol development

Communication Components for Wearable Devices

Overview
Develops and provides communication-related components for wearable products.
Competitiveness
Compact low-power technology and high-precision sensor integration
Customers
  • Healthcare equipment manufacturers
  • Sports goods manufacturers
  • Communication equipment manufacturers
Products
  • Communication modules
  • Sensor integration software
  • Data transmission/reception mechanisms

Home Network Systems

Overview
Provides network equipment compatible with smart homes.
Competitiveness
Balance of usability and security
Customers
  • Home builders
  • Smart home device manufacturers
Products
  • Home Wi-Fi routers
  • Security equipment

Corporate Network Consulting

Overview
Provides network design and operational support services for businesses.
Competitiveness
Strong technical support and high customer satisfaction
Customers
  • Medium-sized enterprises
  • Large corporations
Products
  • Network design
  • Operational support

IoT Platform Provision

Overview
Deploys communication platforms specialized for IoT applications.
Competitiveness
Industry-specific solution provision
Customers
  • Manufacturing industry
  • Logistics industry
  • Energy-related companies
Products
  • IoT communication modules
  • Data collection software

Security Equipment Development

Overview
Provides advanced information security equipment.
Competitiveness
Incorporation of latest technologies and robust design
Customers
  • Government agencies
  • Financial institutions
  • Large enterprises
Products
  • Network monitoring devices
  • Access control systems

In-Vehicle Communication Equipment

Overview
Develops and provides equipment for vehicle information communication.
Competitiveness
High environmental resistance and reliability
Customers
  • Automobile manufacturers
  • Transportation-related companies
Products
  • In-vehicle communication modules
  • Vehicle control software

ICT Equipment for Educational Institutions

Overview
Supports the construction of ICT environments for education.
Competitiveness
Education-specialized support system
Customers
  • Universities
  • Vocational schools
  • Boards of education
Products
  • Classroom network equipment
  • Digital teaching material delivery terminals

Medical Communication Equipment

Overview
Provides communication solutions for the medical field.
Competitiveness
High reliability and security compliance
Customers
  • Hospitals
  • Medical equipment manufacturers
Products
  • Medical communication terminals
  • Equipment for telemedicine systems

Disaster Prevention and Emergency Communication Equipment

Overview
Provides communication equipment for disaster response.
Competitiveness
High durability and rapid communication
Customers
  • Local governments
  • Disaster prevention-related companies
Products
  • Emergency communication terminals
  • Disaster information transmission systems

Competitive Advantage

Strengths

  • High expertise in STB technology
  • Strong embedded software development capabilities
  • Diverse communication equipment lineup
  • Track record in wearable device development
  • Solid customer base
  • Suitability for SME solutions
  • High-reliability product design
  • Flexible response to multiple industries
  • Leadership in cutting-edge communication technology
  • Convenience of Tokyo base
  • Differentiated technology from numerous competitors
  • Customer customization capabilities
  • Long-term trading relationships
  • Consistent quality management system
  • Active entry into growth sectors

Competitive Advantages

  • Holds top-class technological strength in STB field domestically
  • Achieves product differentiation through proprietary embedded software development
  • Rich product lines across multiple communication equipment sectors
  • Advances multifunctionality in wearable devices to meet market needs
  • Gains high customer evaluations through high-reliability products
  • Flexible response to diverse customer needs
  • Possesses stable sales channels rooted in the domestic market
  • Continuously develops advanced products through proactive technology investments
  • Rapid adaptation to trend changes in communication and information equipment
  • Leads competitors through advanced embedded software
  • Product customization via close customer collaboration
  • Can leverage tailwinds from IoT and 5G expansion market growth
  • Implements proprietary technologies in information security
  • Strengthens environmental responsiveness with sustainable manufacturing processes
  • Stable revenue based on long-term partnerships

Threats

  • Intensifying price competition with major communication equipment manufacturers
  • Risk of obsolescence due to rapid technological innovation
  • Domestic market pressure from influx of overseas products
  • Delays in component procurement due to supply chain disruptions
  • Cost increases from exchange rate fluctuations
  • Legal risks related to copyrights and patents
  • Rising labor costs from talent shortages in the labor market
  • Market share dilution from new entrants
  • Response costs accompanying communication standard changes
  • Increased manufacturing burden from stricter environmental regulations
  • Production site risks from natural disasters
  • Potential dangers of information leaks and cyberattacks

Innovations

2024: Development of New 5G-Compatible STB Product

Overview
Launched a 5G-compatible set-top box supporting high-speed communication, improving video delivery quality.
Impact
Achieving new market acquisition and sales growth

2023: Development of Low-Power Consumption Communication Module for Wearable Devices

Overview
Developed low-power consumption communication technology enabling long-time use, enhancing product competitiveness.
Impact
Contributes to market share expansion

2022: Introduction of Automation Tools for Embedded Software Development

Overview
Succeeded in automating software development processes, achieving shorter development periods and cost reductions.
Impact
20% improvement in development efficiency

2021: Launch of New IoT-Compatible Network Equipment Lineup

Overview
Developed dedicated routers for the IoT market and advanced new customer development.
Impact
Contributes to increased new orders

2020: Market Launch of Energy-Saving STB Model

Overview
Launched an STB with significantly reduced power consumption, contributing to reduced environmental impact.
Impact
Improved evaluations of environmental responsiveness

Sustainability

  • Achieved 20% reduction in manufacturing waste (FY2023)
  • Promotion of energy-efficient product design
  • Procurement policy aimed at reducing environmental impact
  • Active use of recycled parts
  • Regular in-house environmental awareness education
  • Initiatives toward carbon neutrality
  • Improvement of working environment and promotion of diversity