Company Overview

4. Long-term Performance Trend Looking back at the long-term performance trend of Elecma Tech <2715>, we can say that it has achieved stable growth while working in the volatile electronics industry and overcoming the waves of economic cycles and product cycles. In the early 2000s, it grew in the mobile phone market, but its main products were components such as FPC (printed circuit boards), substrate mounting, and optical films. These products led to its first revenue exceeding 100 billion yen in March 2008. Since then, the shift to digital terrestrial broadcasting of televisions has led to a significant business in LCD television-related components. In addition, since 2010, smartphones and tablets have experienced rapid growth, and the company has achieved speedy recovery from the Lehman Shock by selling various types of films and glasses for these products, achieving consecutive record highs, and for the first time in March 2016, its revenue exceeded 200 billion yen. In recent years, as the smartphone market has matured, its business has reached a plateau, but it has maintained its growth by enhancing its planning and proposal capabilities, such as selling drive recorders as ODM products. It has achieved its highest revenue ever (239.7 billion yen) in the fiscal year ending March 2023. Furthermore, its next growth markets are shifting towards automobiles and overseas. It is expected that the company's business opportunities will expand further, as it has numerous trading partners with various products and has both proposal capabilities and manufacturing abilities.

Looking back at the long-term performance trend of Elecma Tech <2715>, we can say that it has achieved stable growth while working in the volatile electronics industry and overcoming the waves of economic cycles and product cycles. In the early 2000s, it grew in the mobile phone market, but its main products were components such as FPC (printed circuit boards), substrate mounting, and optical films. These products led to its first revenue exceeding 100 billion yen in March 2008. Since then, the shift to digital terrestrial broadcasting of televisions has led to a significant business in LCD television-related components. In addition, since 2010, smartphones and tablets have experienced rapid growth, and the company has achieved speedy recovery from the Lehman Shock by selling various types of films and glasses for these products, achieving consecutive record highs, and for the first time in March 2016, its revenue exceeded 200 billion yen. In recent years, as the smartphone market has matured, its business has reached a plateau, but it has maintained its growth by enhancing its planning and proposal capabilities, such as selling drive recorders as ODM products. It has achieved its highest revenue ever (239.7 billion yen) in the fiscal year ending March 2023. Furthermore, its next growth markets are shifting towards automobiles and overseas. It is expected that the company's business opportunities will expand further, as it has numerous trading partners with various products and has both proposal capabilities and manufacturing abilities.

The company has maintained its growth by offering appropriate components and products according to market conditions. This can be called a "strategy of being quick to see the opportunity," but we believe it is actually the company's strength and uniqueness to be able to ride on the winning horse. It is not something that any company can achieve, but the company's ability to take advantage of its wide customer base, various products, and development capabilities makes it possible to sustainably grow with a "winning horse riding" mentality.

(Written by FISCO guest analyst Noboru Terashima)