Revenue distribution by industry:

• Telecommunications: 40%
• Insurance: 30%
• Office supplies and IT services: 20%
• Other services: 10%

TOP 3 markets and their percentage shares:

• Japan: 60%
• China: 20%
• South Korea: 10%

Hikari Tsushin, Inc. generates the majority of its revenue from the telecommunications industry, followed by insurance services. The domestic market of Japan is the largest revenue contributor, attributed to its strong market presence and established customer relationships.

In recent years, the company has expanded its activities in China and South Korea, leading to a significant revenue share in these markets. This expansion is part of the strategy to promote growth in Asia and reduce dependence on the Japanese market.

Production Sites: Japan, China

Hikari Tsushin, Inc. is a Japanese company that is mainly active in the field of telecommunications and IT services. The production of the physical products offered by the company mainly takes place in Japan and China. These sites enable the company to efficiently serve both domestic and international markets.

Revenue Growth: 8.1% (2024) Profit Growth: 9.5% (2024)

Hikari Tsushin, Inc. pursues a diversified growth strategy based on several core elements. Firstly, the company is increasingly focusing on digitizing and automating its business processes to realize efficiency gains and reduce costs.

Secondly, Hikari Tsushin is expanding into new markets, particularly in Asia, to strengthen its international presence. This includes both organic growth and strategic acquisitions to gain access to new technologies and customer bases.

Furthermore, the company is investing in innovative technologies and services to expand its product portfolio and differentiate itself from competitors. This notably includes expanding IT services and cloud solutions, which are in high demand in today's digital economy.

This strategy aims to achieve sustainable growth and solidify Hikari Tsushin's market position in the long term.

Main Imported Raw Materials/Components: Electronic components, Telecommunications equipment
Countries of Origin: China, South Korea, Taiwan

Hikari Tsushin, Inc., a leading Japanese company in the field of telecommunications and information technology, mainly imports electronic components and telecommunications equipment. These materials are essential for the production and distribution of their products and services.

China, South Korea, and Taiwan are the primary countries of origin for these imports. These countries are known for their strong electronics industry and offer high-quality components at competitive prices. Strategic sourcing from these countries enables Hikari Tsushin to remain competitive and continuously expand their product range.

Market share: 10% (2024, estimated)
EBITDA margin: 18% (2024)
Return on equity (ROE): 12% (2024)

Hikari Tsushin, Inc. has a significant competitive advantage through its diversified business segments ranging from telecommunications services to insurance. This diversification allows the company to spread risks and benefit from various sources of income.

The EBITDA margin of 18% indicates that the company operates efficiently and is able to control its costs well. This is an indicator of strong operational performance compared to competitors.

Another advantage is the return on equity of 12%, which suggests effective use of equity. This indicates that the company is able to offer attractive returns to its shareholders, making it appealing to investors.

Overall, Hikari Tsushin, Inc.'s competitive advantage is well supported by its diversification, operational efficiency, and capital return.

Institutional Investor Share: 45% (estimated, 2025)
Insider Buys/Sells: No significant transactions reported (2025)

The institutional investor share in Hikari Tsushin, Inc. is estimated to be around 45%. This figure reflects the confidence of institutional investors in the company, indicating a stable financial performance and attractive growth prospects.

In 2025, no significant insider buys or sells were reported. This could suggest that the management is satisfied with the current company strategy and valuation, or that no significant changes in ownership structure are expected.

Market share of Hikari Tsushin, Inc.: 3.2% (2025, estimated)

Major competitors and their market shares:

1. NTT Corporation: 25.4%
2. KDDI Corporation: 20.1%
3. SoftBank Group Corp.: 18.7%
4. Rakuten Group, Inc.: 10.5%
5. Hikari Tsushin, Inc.: 3.2%
6. Fujitsu Limited: 2.8%
7. NEC Corporation: 2.5%
8. Toshiba Corporation: 2.1%
9. Mitsubishi Electric Corporation: 1.9%
10. Hitachi, Ltd.: 1.7%

Moat of Hikari Tsushin, Inc.:

Hikari Tsushin, Inc. has a moderate moat, mainly based on its diversified business model, which includes telecommunications services, insurance, and office supplies. This broad portfolio allows the company to diversify risks and leverage various revenue streams.

Compared to larger competitors like NTT Corporation and KDDI Corporation, which have extensive infrastructure and strong brand recognition, Hikari Tsushin's moat is less pronounced. These companies have significant advantages due to their size, network effects, and technological innovations.

However, Hikari Tsushin can score points through its flexibility and ability to quickly respond to market changes. Nevertheless, competition remains intense, and larger competitors tend to have stronger and more sustainable competitive advantages.

Revenue Growth: 8.5% (2024)
Profit Growth: 10.2% (2024)
Return on Equity (ROE): 14.8% (2024)

Hikari Tsushin, Inc. recorded a solid revenue growth of 8.5% in 2024, attributed to successful expansion of its business fields and strong demand for its services. The profit growth of 10.2% indicates that the company operates efficiently and manages its costs well.

The return on equity of 14.8% suggests that Hikari Tsushin effectively invests in its resources and generates good returns for its shareholders. This metric is an indicator of the company's profitability and management.

In summary, Hikari Tsushin demonstrates strong financial performance and solid growth potential. This could make the stock an attractive investment, especially for investors interested in a stable and growth-oriented company.

Dividend Yield: 2.1% (2025, estimated)

Dividend History: Continuous payout over the last 5 years

Hikari Tsushin, Inc. regularly pays dividends to its shareholders. The dividend yield is estimated to be around 2.1% for the year 2025. The company has been consistently distributing dividends over the past five years, indicating a reliable dividend policy.

The reliability of the payout is supported by the stable financial performance of the company and its strong market position. Analysts expect Hikari Tsushin to continue its dividend policy unless significant market changes occur.