AICHI CORPORATION (6345) Stock Price

Aichi Corporation is a consolidated subsidiary of Toyota Industries Corporation that sells specialized vehicles and parts, as well as purchases parts. The company manufactures and sells pole-hole digging and setting vehicles and aerial work platforms for electric power, electrical, and telecommunications construction work, as well as aerial work platforms for construction and cargo handling operations. It also manufactures and sells skid steer loaders and provides training for aerial work platforms.

Aichi Corporation supplies certain aerial work platforms to its parent company on an OEM basis. Group companies each manufacture and sell aerial work platforms and provide after-sales services, with reporting segments divided by sales category. Due to the difficulty in linking each company's business to reporting segments, the positioning of each company within the consolidated group's overall business is documented.

In manufacturing, Aichi Corporation produces pole-hole digging and setting vehicles, aerial work platforms, skid steer loaders, and other specialized vehicles. Zhejiang Aichi Engineering Machinery Co., Ltd. and Hangzhou Aichi Engineering Vehicles Co., Ltd. manufacture aerial work machinery and specialized vehicles in China. In sales, Aichi Corporation sells specialized vehicles domestically and internationally, while affiliated companies conduct sales activities in their respective regions.

Regarding parts and repairs, Aichi Corporation provides after-sales services including parts sales and repair work domestically and internationally. Affiliated companies similarly provide these services in their respective regions. As other business operations, Aichi Corporation provides training related to aerial work platforms.

Aichi Corporation is strengthening its partnership with Itochu Corporation as a growth strategy, aiming to expand sales by leveraging synergy effects. Specifically, the company is advancing into the maintenance lease business, expanding its used vehicle operations, and pursuing overseas market entry by utilizing Itochu Group's network.

The company targets sales of 76.5 billion yen and operating profit of 12.5 billion yen with a 10% ROE by fiscal year 2027, and plans to achieve sales of 83.0 billion yen, operating profit of 14.0 billion yen, and ROE of 10% or higher by fiscal year 2029. Through these targets, the company aims to improve long-term shareholder returns while maintaining a dividend payout ratio of 60% or higher.

The company will expand sales through increased promotion of environmentally and safety-conscious products and service activities targeting zero downtime. Additionally, it aims to improve productivity through the establishment of new factories and reorganization of existing facilities targeting zero CO2 emissions.

As a contribution to the global environment, the company is working to reduce CO2 emissions and minimize environmental impact. The company also prioritizes contributions to local communities by supporting disaster recovery efforts and promoting community-based activities. The company is actively investing in human resources through quality control training and skill development initiatives.

Through these strategies, Aichi Corporation aims to enhance corporate value and recognizes the simultaneous achievement of shareholder returns and management resource allocation as a key financial priority.