| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2971.84 | 76 |
| Graham Formula | 3266.85 | 93 |
TECHNO ASSOCIE Co., Ltd. (8249.T) is a leading Japanese industrial distributor specializing in fasteners, processed components, metal materials, and industrial machinery. Founded in 1804 and headquartered in Osaka, the company operates as a subsidiary of Sumitomo Electric Industries, Ltd. TECHNO ASSOCIE serves diverse industries, including automotive, electronics, construction, and medical equipment, providing critical components such as structural parts for smartphones, automotive metal products, and housing materials. The company’s extensive product portfolio includes high-performance fasteners, industrial adhesives, noise-damage-prevention products, and factory automation solutions. With a strong presence in Japan and global markets, TECHNO ASSOCIE leverages its long-standing expertise and Sumitomo’s backing to deliver high-quality, specialized industrial solutions. Its focus on innovation and energy-efficient products, such as solar power generation systems, positions it as a key player in Japan’s industrial distribution sector.
TECHNO ASSOCIE offers stability with a low beta (0.34), indicating lower volatility compared to the broader market. The company reported JPY 86 billion in revenue and JPY 2.4 billion in net income for FY 2022, with a diluted EPS of JPY 129.9. However, negative operating cash flow (-JPY 785 million) and capital expenditures (-JPY 1.76 billion) raise concerns about short-term liquidity. Its strong cash position (JPY 14.8 billion) and manageable debt (JPY 1.33 billion) provide financial flexibility. The dividend yield is modest (JPY 38 per share). Investors may value its niche market positioning and Sumitomo’s backing, but operational inefficiencies and reliance on industrial demand cycles pose risks.
TECHNO ASSOCIE’s competitive advantage lies in its diversified product portfolio and long-standing industry relationships, supported by Sumitomo Electric’s resources. The company specializes in high-precision industrial components, catering to automotive and electronics manufacturers—a segment requiring stringent quality standards. Its expertise in fasteners and functional materials differentiates it from generalist distributors. However, TECHNO ASSOCIE faces challenges from larger global distributors with broader supply chains and economies of scale. Its negative operating cash flow suggests inefficiencies in working capital management, potentially limiting growth. The company’s focus on Japan (where it benefits from domestic manufacturing networks) may restrict international expansion compared to multinational peers. Strengths include Sumitomo’s R&D support and a reputation for reliability, but competition from cheaper Asian suppliers and digital B2B platforms could pressure margins.