ALINCO INCORPORATED (5933) Stock Price

Market cap
¥22.3B
P/E ratio
9.7x
Alinco manufactures and rents temporary construction equipment like scaffolding, while also producing housing equipment and electronic communication devices for markets across Japan, Asia, and beyond.

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Business Overview

Alinco's primary business is the manufacturing, sales, and rental of temporary construction equipment. Domestically, Oriental Kizai sells Alinco products, Sofuku Steel manufactures and sells logistics storage equipment, and Uekin designs and manufactures metal molds. Internationally, Suzhou Alinco Metal Products and ALINCO (THAILAND) manufacture products for sale in Japan, China, Thailand, Indonesia, and other markets.

In the rental business, Alinco rents out products it manufactures as company-owned assets. Oriental Kizai also provides rental services, while Tokyo Kasetsu Built handles scaffolding construction. In Thailand, ALINCO SCAFFOLDING (THAILAND) operates rental services, and in Indonesia, PT. ALINCO SCAFFOLDING INDONESIA does the same. PT. ALINCO RENTAL INDONESIA leases equipment centers, and SIAM ALINCO provides investment support.

In the housing equipment business, Alinco sells products manufactured by Suzhou Alinco Metal Products and Ningbo Teling Metal Products. Hikari Mall sells aluminum extrusions and plastic molding materials, Ship manufactures and sells lifting work platforms, S.T.S sells surveying equipment, and Showa Bridge Sales manufactures and sells aluminum bridges. Aluokang Health Technology provides quality inspection services for fitness equipment.

In the electronic equipment business, Alinco manufactures and sells domestically and internationally, as does Alinco Toyama. Alinco Toyama also provides processing and assembly services, while Todenshi Kogyo and Moriyama Ibaraki design and manufacture printed circuit boards. Shenyang Alinco Electronics and ALINCO ELECTRONICS VIETNAM provide development and design services for wireless communication equipment.

Management Policy

Alinco has established "Medium-Term Management Plan 2027" as its growth strategy. This plan covers the three-year period from fiscal year ending March 2025 through fiscal year ending March 2027, aiming to evolve core businesses and restructure the business portfolio. The company also prioritizes management that considers capital costs and stock price, targeting a consolidated dividend payout ratio of 40% while implementing progressive dividends.

The company expects construction investment to grow, supported by steady public investment, while addressing labor shortages and supply constraints in the construction and housing-related industries. Through this approach, Alinco aims to expand operations domestically and internationally, pursuing sustainable growth.

Alinco is committed to providing quality products and services and securing appropriate profits through compliance-based corporate activities. By prioritizing profit returns to shareholders and earning the trust of business partners, employees, and local communities, the company fulfills its social responsibilities and pursues perpetual development.

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