In an IR interview, SEIKA CORPORATION presented its long-term vision and growth strategy through 2030. The company has leveraged its position as Mitsubishi Heavy Industries' authorized distributor to operate across 3 areas—energy, industrial machinery and products—and has expanded its overseas locations and network.
SEIKA CORPORATION was founded in 1947 and has expanded its business from Kitakyushu following the postwar dissolution of the zaibatsu. The company was listed on the First Section of the Tokyo Stock Exchange in 1961, but faced a crisis in 1964 when Mitsubishi Heavy Industries consolidated its sales agency network. Through the efforts of SEIKA CORPORATION's management and Mitsubishi Heavy Industries' understanding, it secured its position as a sub-distributor. Building on this foundation, the company expanded overseas, establishing locations in Europe, the Americas and Southeast Asia, among other regions.
In terms of its business overview, the company combines its core energy business with its industrial machinery and product businesses, functioning as a comprehensive machinery trading company that meets customer needs by leveraging long-standing relationships of trust. As Mitsubishi Heavy Industries' authorized distributor, it has established an extensive sales network across western Japan, including locations in Okayama, Hiroshima and Kitakyushu. It also handles a wide range of products in niche-leading fields operated by its subsidiaries. Leveraging its trading network with approximately 3,000 companies and its information assets, the company is also developing products that address environmental and social issues.
As part of its growth strategy, the company has formulated a long-term management vision through 2030. Its purpose is to support the creation of sustainable energy and industrial activity in harmony with the global environment, in response to future shifts in the fuel landscape. It targets net income of ¥4.5 billion and operating income in the ¥6 billion-plus range in 2030. The First Medium-Term Management Plan covers 2023-2026 and the Second Medium-Term Management Plan covers 2027-2030. The company is expanding products related to environmentally focused green innovation and promoting energy conservation, decarbonization, digital transformation and the circular economy.
In terms of investment and execution, the company is advancing approximately ¥10 billion in business investment and strengthening investment in human capital. To reinforce its financial base, it is reducing cross-held shares and selling idle assets, and has disclosed a policy of making growth investments against a backdrop of stable earnings. It is also working to invigorate its IR activities, stepping up information disclosure to shareholders and explicitly stating its intention to increase its shareholder return ratio from fiscal 2024 onward.
Regarding progress and points of focus, performance has remained strong, including at affiliated companies, and the company is expected to approach the final-year targets of the First Medium-Term Management Plan in fiscal 2025. It is considering bringing forward revisions to the targets for the fiscal year ending March 2027 and resetting the targets for 2030.