Shinwa (7607) Corporate presentation summary

Company overview and philosophy

• Founded in 1951, with roots dating back to 1907, emphasizing a pioneering spirit and the “Three Expansion Spirit” for innovation and new market creation.

• Operates as an engineering trading company integrating trading, manufacturing, and engineering functions to provide one-stop solutions, especially in metal joining.

• Serves a broad range of industries including automotive, semiconductors, electronics, HVAC, aerospace, and materials.

Business segments and strengths

• Offers solutions in metal joining, industrial machinery, smart factories, maintenance, measurement/inspection, and advanced electronics.

• Maintains a global presence with 19 locations in 11 countries, recently expanding into Vietnam.

• Competitive advantages include integrated trading and engineering, strong project management, deep manufacturing expertise, and flexible response to niche needs.

• Supports customers throughout the manufacturing process, from development to after-sales maintenance, capturing revenue at every stage.

Review of previous mid-term plan (2023–2026)

• Revenue growth driven by automotive and smart factory businesses, but profit growth was limited by semiconductor project delays and rising costs.

• ROE declined due to lower profit margins, missing initial targets.

• Strategic investments made in logistics automation, semiconductor, AI, and aerospace, with new bases established in Vietnam and planned for India.

• Continued focus on sustainability, capital efficiency, and shareholder returns, with annual dividends increasing to ¥124 per share.