AICHI ELECTRIC CO.,LTD. (6623) Stock Price

Aichi Denki is a company that manufactures and sells electrical power equipment, rotating machinery, and printed circuit boards, while also providing electrical power facility construction services as its core business. Its main products include transformers, control equipment, motors for buildings and vehicles, mechanical components for electric beds, and various types of printed circuit boards. The company handles everything from design and manufacturing to sales and on-site construction work.

The company's revenue comes primarily from product sales as well as electrical power facility construction and related services. Its main customers are domestic power company groups and manufacturers in the air conditioning and automotive sectors. In particular, sales to the Chubu Electric Power Group represent an important part of the electrical power equipment division, while rotating machinery and circuit boards are supplied to manufacturers through domestic and overseas facilities.

The company's business is divided into three segments: electrical power equipment, rotating machinery, and printed circuit boards. Each division handles manufacturing, sales, and production allocation within the group. The electrical power equipment division supplies and constructs transformers and control devices; the rotating machinery division handles applied equipment such as air conditioning and automotive motors; and the printed circuit board division deals with a wide range of board types, including double-sided and multi-layer boards as well as high heat-dissipation boards.

Under its Medium-Term Management Plan 2028, the company aims for sustainable growth and enhanced corporate value by embracing decarbonization and digitalization trends. Guided by its core management principles of "aggressive management," "technical excellence," and "respect for people," the company focuses on three business pillars—electrical equipment, rotating machinery, and printed circuit boards—with priority given to capturing demand in renewable energy, electrification, and energy efficiency. Specifically, during the medium-term plan period through 2028, the company will launch new products and businesses while strengthening manufacturing capabilities to ensure stable supply and reinforce its earnings foundation.

Priority investment areas are concentrated in three domains: transformers and control devices for renewable energy, high-efficiency motors for buildings and vehicles, and printed circuit boards designed for heat dissipation and multilayer structures. The company's differentiation strategy leverages its strength in providing integrated services from design through manufacturing to on-site installation and maintenance. Concrete initiatives include improving reliability for major customers in power utility groups, obtaining quality certifications for the automotive market, and enhancing yield through production line improvements and inspection equipment upgrades.

For new market development and business expansion, the company plans to introduce products and expand services in growth sectors such as electric vehicles, heat pump air conditioning systems, and renewable energy equipment. The company is establishing local sales and service bases and optimizing its supply chain to expand supply to automotive and air conditioning manufacturers alongside existing domestic customers. Additionally, by strengthening power equipment installation and maintenance services, the company aims to secure stable revenue streams less dependent on product sales alone.

In technological innovation, the company prioritizes research and development investments to enhance efficiency and durability through prototype evaluation and materials technology advancement. Specifically, it focuses on developing loss-reduction technology for high-efficiency motors, heat-resistant and long-life technology for transformers, and heat dissipation design technology for circuit boards. On the production floor, the company is introducing automation and digitalization (DX) to improve productivity and quality control. Through these efforts, the company seeks to differentiate itself through technological strength and aims to cultivate multiple new products and businesses by 2028.