Kyoritsu Electric

Basic Information

Stock Code
6874
Industry
Electrical Equipment
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Shizuoka Prefecture
Establishment Year
February 1959
Listing Year
June 1998
Official Website
http://www.kdwan.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sanhigyo Co., CMCI, Eftee Group, ZOA, Ascentech, TechMatrix, Nishiritsu Electric, Shinpakoku Material, GDEP Advance, Asaka Kogyo, OKM, Hoshikawa Electric Machine, Kyowa Electric, INEST, SHINKO, Nishikawa Keisoku, Fuso Dentsu, Daiko Tsusho, Rikei

Overview

Kyoritsu Electric is an electrical equipment manufacturer based in Shizuoka Prefecture, founded in 1959. It operates as a major domestic player in FA-related equipment and semiconductor inspection devices, diversifying its business across multiple fields.

Current Situation

Kyoritsu Electric has maintained stable earnings in the latest period, with net profit showing an upward trend. It holds a high domestic market share in its mainstay FA control systems and semiconductor substrate inspection equipment, differentiating itself from competitors through technological strength. In 2023, it invested approximately 2 billion yen in factory expansions and new facilities to enhance production capacity. Through aggressive acquisition strategies, it is expanding its product lineup and customer base, while also engaging in industrial network equipment and software contract development. On the sustainability front, it is developing energy-saving devices and strengthening ties with local communities. Moving forward, it positions IoT-compatible products and overseas market development as growth drivers, focusing on technological innovation and global expansion.

Trivia

Interesting Facts

  • Holds top-class domestic market share in semiconductor substrate inspection equipment.
  • Based in Shizuoka Prefecture, has long supported local companies.
  • Diversified management extending beyond semiconductors to industrial machinery wholesale.
  • Growth-oriented company expanding business areas through aggressive M&A.
  • Resilient to risks in specific markets due to diverse product offerings.
  • FA equipment widely adopted at manufacturing sites nationwide.
  • Recently focusing on integration with cloud technology.
  • Strong trust from the region due to community-rooted CSR activities.
  • Promoting technology development through industry-academia collaboration with local universities.
  • Established company with over 60 years of history since founding.
  • Provider of cutting-edge technology contributing to revival of domestic manufacturing.
  • Rich track record in developing industrial image inspection devices.
  • Early focus on IoT transformation in manufacturing.
  • In-house training system for engineers.
  • Strong trading relationships with domestic and international equipment manufacturers.

Hidden Connections

  • Closely collaborates with small and medium manufacturers in Shizuoka Prefecture, serving as a pillar of the local economy.
  • Jointly promoting standardization of inspection technology with multiple semiconductor-related companies.
  • Collaborating with local university research institutions to advance AI inspection technology development.
  • Building foundation for Southeast Asian market entry in collaboration with related companies.
  • Supplying automation technology to address labor shortages in manufacturing.
  • Holds a unique position even in Nikkei Group's industry classifications.
  • Significantly enhanced FA field expertise through past corporate acquisitions.
  • Many clients are major manufacturers, earning high trust.

Future Outlook

Growth Drivers

  • Expansion of automation needs in manufacturing
  • Increasing adoption of IoT and AI technologies in production equipment
  • Domestic return and growth of semiconductor industry
  • Growing demand for energy-saving and environmentally friendly products
  • Expansion of network equipment demand in overseas markets
  • Increasing equipment renewal needs among SMEs
  • Market expansion in smart factory construction support
  • Technological innovations in inspection equipment domestically and internationally
  • Support from regional industrial promotion policies
  • Increasing system demand accompanying digital transformation
  • Superiority enhancement through IoT compatibility in FA equipment
  • Trend toward DX promotion in industrial sectors

Strategic Goals

  • Maintain and expand domestic top share in FA equipment
  • Promote smart factories utilizing IoT and AI
  • Achieve over 30% overseas market sales ratio
  • Expand sustainability-compliant products
  • Achieve environmental impact reduction and energy-saving targets
  • 20% improvement in production efficiency through factory automation
  • Enhance corporate value through strengthened coexistence with local communities
  • Business expansion through M&A domestically and internationally
  • Promote improvement in employee technological skills and capabilities
  • Strengthen revenue from new software businesses

Business Segments

FA Equipment Sales and Services

Overview
Provides sales of automation equipment for manufacturing lines and maintenance after introduction.
Competitiveness
Domestic top-level semiconductor inspection equipment technology
Customers
  • Manufacturing Companies
  • Semiconductor Manufacturers
  • Assembly Factories
  • Inspection Equipment Users
  • Automotive-Related Companies
Products
  • Industrial Controllers
  • Motor Control Devices
  • Inspection Equipment
  • Automatic Transport Devices
  • Management Software

Information and Communications Equipment Wholesale

Overview
Wholesales diverse IT hardware to support corporate IT infrastructure development.
Competitiveness
Procurement network from multiple manufacturers
Customers
  • IT Companies
  • System Integrators
  • Small and Medium Enterprises
  • Government and Public Offices
  • Educational Institutions
Products
  • Server Equipment
  • Network Equipment
  • Storage
  • Software Licenses

Industrial Machinery Wholesale

Overview
Supports manufacturing process efficiency through wholesale of various industrial machinery and equipment.
Competitiveness
Supply network for machinery across multiple fields and technical support
Customers
  • Manufacturing Companies
  • Inspection Factories
  • Logistics Companies
  • Food Processing Factories
Products
  • Production Line Machinery
  • Inspection Systems
  • Transport Equipment

Software Contract Development

Overview
Contributes to improved manufacturing efficiency through contract development of control and management systems.
Competitiveness
Custom development capabilities tailored to FA field needs
Customers
  • FA Equipment Manufacturers
  • Manufacturing Companies
  • System Integrators
Products
  • Control Software
  • Production Management Systems
  • Image Analysis Software for Inspection

Competitive Advantage

Strengths

  • Domestic top-class semiconductor inspection technology
  • Diverse FA equipment lineup
  • Long-term customer trust and stable earnings base
  • Growth strategy through aggressive M&A
  • Regionally rooted management and high technological capabilities
  • Rapid customer support system
  • Strong trading partner network
  • Continuous investment in technology development
  • Wholesale of equipment across a wide range of industries
  • High quality control capabilities
  • High domestic manufacturing ratio
  • Proprietary technology holdings
  • Specialized software development capabilities
  • Initiatives to reduce environmental impact
  • Reliability from ISO certifications

Competitive Advantages

  • Domestic top-class market share in semiconductor substrate inspection equipment
  • Integrated provision of FA control equipment and inspection devices
  • Customization capabilities tailored to customer needs
  • Technological responsiveness to growing factory automation needs
  • Rapid technology and product expansion through strategic acquisitions
  • Strength of domestic production base centered in Shizuoka Prefecture
  • Synergistic effects with network equipment wholesale
  • Total support from manufacturing to services
  • Accumulated know-how in production management system development
  • Technology succession through high-quality engineer training
  • Rapid troubleshooting and maintenance network
  • Promotion of energy-saving and environmentally friendly product development
  • Broad customer base from SMEs to major manufacturers
  • Establishment of flexible production system
  • Numerous long-term contracts with existing customers

Threats

  • Market contraction due to overseas relocation of domestic manufacturing
  • Economic fluctuation risks in the semiconductor industry
  • Technology innovation competition from overseas competitors
  • Cost instability due to exchange rate fluctuations
  • Decline in productivity due to labor shortages
  • Increased compliance costs for global regulations
  • Risk of delays in rapid response to new technologies
  • Volatility in raw material prices
  • Growth slowdown due to maturation of domestic market
  • Rising cybersecurity risks
  • Increasing product repair and maintenance costs

Innovations

2023: 2 Billion Yen Investment in Factory Equipment Expansion

Overview
Significantly improved production efficiency through enhanced manufacturing capacity and introduction of new equipment.
Impact
20% increase in production capacity and shortened delivery times

2022: Development of Next-Generation Semiconductor Substrate Inspection Equipment

Overview
Developed high-precision inspection equipment equipped with AI technology, contributing to quality improvement.
Impact
15% improvement in inspection accuracy and reduction in defects

2021: Launch of Energy-Saving FA Control Devices

Overview
Introduced new products that reduce power consumption by 30%, contributing to reduced environmental impact.
Impact
Enhanced product competitiveness and improved customer satisfaction

2024: Start of Cloud-Compatible Production Management System Development

Overview
Supports productivity improvement in customer factories with real-time production monitoring systems linked to IoT.
Impact
Expected efficiency improvements after customer adoption

2020: Product Enhancement through Acquisition of Foreign Company's Technology

Overview
Expanded inspection equipment lineup and improved product competitiveness through acquisition of overseas company.
Impact
Foundation for acquiring overseas market share

Sustainability

  • Development and promotion of energy-saving products
  • Promotion of waste recycling in factories
  • Production rationalization to reduce environmental impact
  • Collaboration with local communities on environmental protection activities
  • Expansion of resource-saving component adoption
  • Implementation of employee environmental education programs
  • Strengthening of green procurement
  • Regular management of CO2 emissions and setting reduction targets
  • Environmental impact assessment of supply chain
  • Enhanced proper handling of electronic waste
  • Expansion of energy management system introductions
  • Regular issuance of environmental reports