SANYO DENKI CO., LTD.
6516・Prime Market・Electric Appliances
Business
San-ei Electric (Sanyo Denki) is a precision electric equipment manufacturer founded in 1927, developing its business around three core brands: cooling fans "San Ace," power supplies and UPS "SANUPS," and servo motors/stepping motors "SANMOTION." Its main customers are manufacturers of communication devices, data centers, semiconductor manufacturing equipment, robots, and FA equipment, and it maintains a global sales network across Japan, North America, Europe, East Asia, and Southeast Asia. The company is composed of the parent company and 20 subsidiaries, with consolidated revenue of ¥107,346 million for FY2026 (ending March 2026). In April 2024, the company introduced an in-house company system, under which the San Ace Company, Electronics Company, and Motion Company each operate their businesses on an independent accounting basis.
Business Model
The company's main production bases are multiple factories in Ueda City, Nagano Prefecture, and its fourth plant in the Philippines, from which it supplies self-designed and manufactured high-reliability products to markets worldwide via sales subsidiaries and distributors. While operating primarily on a made-to-order basis, it also develops business geared toward distributors. Through continuous new product development backed by R&D expenditure of ¥3,368 million and locally tailored support at global sites, the company's products become deeply embedded in customers' equipment designs, enabling stable, ongoing order intake.
Company Strengths
San Ace Company achieved revenue of ¥40,826 million and operating profit of ¥8,195 million (operating margin of 20.1%) in FY2026 (ending March 2026). Demand for generative AI-related equipment and network equipment remained solid, with order intake reaching ¥41,822 million, up 29.6% year on year. The company continues to develop new products such as counter-rotating fans for GPU servers, responding to market needs with a product lineup featuring high cooling performance, long service life, and low noise.
Starting with the establishment of a European subsidiary in 1988, the company has built a network of 20 subsidiaries, including 10 companies in East Asia and 4 companies in Southeast Asia, in addition to North America. The fourth plant in the Philippines began full-scale operation in April 2024, strengthening the supply system for products used in communication equipment and semiconductor manufacturing equipment. In Europe, a stepping motor assembly plant is in operation, enhancing lead time reduction and customization capabilities.
Under the in-house company system introduced in April 2024, San Ace Company, Electronics Company, and Motion Company each operate on an independent accounting basis to secure profits. By holding different product groups—cooling fans, power supply units, and motion control—the company diversifies the risk of demand fluctuations in specific markets. In FY2026 (ending March 2026), the three companies combined recorded revenue of ¥101,618 million.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), revenue was ¥107,346 million (up 9.7% year on year), operating profit was ¥10,885 million (up 37.2%), and profit attributable to owners of parent was ¥8,661 million (up 53.6%), marking a clear turnaround from two consecutive years of profit decline. External factors—the acceleration of generative AI-related investment, the recovery of capital investment in China, and the recovery in demand in the FA market—drove performance. The gross profit margin improved to 27.9% (from 25.7% in the previous period), and the operating margin also recovered to 10.1% (from 8.1%). The company's forecast for FY2027 (ending March 2027) is revenue of ¥128,850 million and operating profit of ¥16,290 million, a level substantially exceeding the previous record-high profit (¥13,421 million in FY2023 (ending March 2023)). Five-period revenue trend: ¥101,123 million → ¥120,803 million → ¥112,904 million → ¥97,847 million → ¥107,346 million.
Growth Strategy
Capturing AI, semiconductor, and renewable energy demand, the company aims to raise profitability to record-high levels under its company-based organizational structure
San Ace Company's "San Ace (Cooling Fans)" continues to see expanding demand for network equipment and generative AI-related equipment. Order intake for the segment in FY2026 (ending March 2026) was ¥41,822 million (up 29.6% year on year), a strong leading indicator, and sales growth is expected to continue from the next fiscal period onward.
Against the backdrop of a full-scale increase in AI-related capital investment, demand for semiconductor manufacturing equipment and wafer transfer robots has increased significantly at Motion Company and Electronics Company. Motion Company's order backlog has grown to ¥18,411 million (up 57.5% year on year), and this is expected to contribute to sales in the next fiscal period.
A new dividend policy was announced on March 19, 2026. The annual dividend per share for FY2027 (ending March 2027) is planned at ¥170 (on a post-stock-split basis), with a dividend payout ratio of 50.3% expected. Together with the 1-for-3 stock split implemented in October 2025, this aims to enhance shareholder returns and improve share liquidity.
The company maintains and strengthens its supply system to respond to growing global demand by utilizing production bases in Southeast Asia (the Philippines, Vietnam, India, and Thailand) and East Asia sales bases, including inland China (Chengdu). Sales revenue in East Asia for FY2026 (ending March 2026) expanded to ¥10,629 million (up 22.5% year on year).
Last updated: July 19, 2026