Meiji Electric Industries Co (3388) Investor update summary

Business model and market position

• Engineering-enabled trading business supports manufacturing, especially automotive, with solutions spanning product planning through production.

• Trading accounted for 63% and engineering for 37% of sales in H1 FY Mar 2025.

• Supplier base exceeds 3,000; more than 3,000 customers and ~10,000 shop-floor issues served annually.

• Automotive represented 53% of standalone H1 FY Mar 2025 sales; industrial/machine tools 15%, and electrical/electronics/semiconductors 12%.

Growth strategy

• Vision 2030 maps three stages: foundation in FY Mar 2022–2024, growth in FY Mar 2025–2027, and a leap forward toward FY Mar 2030.

• The FY Mar 2025–2027 plan targets area No. 1 partner status, prioritizing safety and quality, talent investment, productivity, core-business and overseas expansion, sustainability, and capital efficiency.

• Growth themes include automation, labor saving and robotics, plus lower manufacturing emissions and hydrogen utilization.

• Hydrogen infrastructure work has supplied equipment and served as prime contractor at 50 of Japan’s 163 hydrogen stations.

• Blue Clover is a 50kW pure-hydrogen stationary fuel-cell generator; participation also includes a feasibility study for a low-carbon hydrogen model town in Chita.

Financial targets

• FY Mar 2024 sales were ¥74.58bn.

• FY Mar 2027 targets: sales ¥90.0bn, operating profit ¥4.86bn, ordinary profit ¥5.07bn, and net profit attributable to owners of parent ¥3.63bn.

• FY Mar 2027 profitability targets: 5.4% operating margin and 10.0% ROE.

• Sales are concentrated in Q4.