DENSO created the QR code, and the sharp rise in Opto Electronics' share price has brought renewed attention to the automatic identification theme. This article provides a roadmap of DENSO's business structure and future prospects.
The article introduces the history of the QR code, which was created in 1994 by DENSO, Toyota Group's largest automotive parts maker, and developed from efforts to address on-site challenges into a standardized format that was made freely available. DENSO is therefore positioned as a rare company capable of developing a broad range of components that connect the heart and nervous system of a vehicle.
The article discusses DENSO's business performance, noting that although revenue has reached a record high, its profit margin remains below target and the company plans lower operating profit in fiscal 2026 due to growth investment and higher material costs. It also notes that management has reversed course on a number of decisions this year, including withdrawing its takeover proposal for semiconductor major ROHM and cancelling the sale of its spark plug business.
The sharp rise in the share price of Opto Electronics, a maker of barcode-reading equipment, on 5 October is described as the trigger for renewed interest in the automatic identification theme. However, the article argues that the company's return to profitability does not directly indicate a sudden change in demand, and that the core of the theme lies in DENSO's structural value.