■Company Overview
2. Features and strengths
(1) Abundant products and a solid customer base
The first characteristic of Elematec ＜2715＞ is that it has a large number of business partners and products. The number of suppliers has risen to about 7,000 companies (manufacturers), while sales partners (users) of about 6,000 companies trade various commercial materials, mainly electronic materials and electronic components. Individual suppliers and sales destinations have not been disclosed, but the top 10 main sales companies account for approximately 40% of sales (fiscal year ending 2024/3). Stable growth that is less likely to be greatly influenced by specific customers or product trends is possible due to the dispersion of suppliers, sales destinations, and products handled.
(2) Proposal and manufacturing capabilities (locations)
Since it has a large number of customers, the company receives many requests from customers. Meanwhile, since we have handled many products over many years, we know the characteristics and characteristics of many products thoroughly, and by combining this knowledge with past know-how, we respond to customer requests. The fact that it has the ability to anticipate customer needs and make proposals on its own is an advantage of the company, which can carry out not only “passive” (passive) business development, but also “active” (active) business development.
Furthermore, in the case of the company, it has a manufacturing department (1 domestic factory, 2 overseas factories, many manufacturing contractors), so it is possible not only to simply sell parts, but also to provide modular products, customized products, and semi-finished products in response to customer requests. In a sense, it is a “convenient and convenient vendor” for customers, and due to this fact, it can be said that many customers have continued business with the company for many years, and this point is probably the company's strength.
(3) Three-dimensional profit structure
In the case of a general electronics trading company, customers (X axis) and products (Y axis) are important factors in order to expand profits, and the profit structure is flat. In the case of the company, in addition to this, it also has elements of the 3rd axis (Z axis) such as planning (proposal), manufacturing, quality control, etc., so it can be said that the profit structure is three-dimensional.
Especially in recent years, not only simple trading company functions but also planning and proposal capabilities have been strengthened, and the Z axis direction is getting higher (thicker). If compared to a general building, it is similar to the fact that taller buildings are stronger and less likely to collapse, and it can be said that the company's profit structure is strong and does not collapse easily. The fact that it has such a three-dimensional profit structure is also a characteristic and strength of the company.
3. Main services and functions
The company provides not only basic services and functions as an electronics trading company, such as optimal component supply, credit/finance, and delivery/inventory management, but also more advanced services and functions with high added value, such as planning, development, design, and manufacturing services. The company has listed the following 5 services and functions as features, and it can be said that it is precisely because there are such functions that various products are connected to business and incorporated into business results.
(1) Planning, development and design
The sales department, development department, and technical department cooperate to plan, develop, and design new parts and units.
(2) Procurement agency service
We procure parts that are optimal for the quality, cost, and delivery dates required by customers.
(3) Manufacturing Services
We provide customized products, module products, and finished products (ODM) by utilizing our own factories and excellent domestic and international outsourcing.
(4) Quality and Environmental Management
In order to deliver high quality products, we have established an advanced quality control system.
(5) Overseas Networks
Using a worldwide network, smooth global logistics is realized.
The company maintains a relatively high gross profit margin by adding high value-added services and functions to simple trading company functions. Going forward, the company's gross profit margin should further improve by utilizing the five services and functions.
(Written by FISCO Visiting Analyst Noboru Terashima)