ENVALITH
株式会社正興電機製作所 logo

SEIKO ELECTRIC CO., LTD.

6653・Prime Market・Electric Appliances

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株式会社正興電機製作所 logo
SEIKO ELECTRIC CO., LTD.6653

Business

Seiko Electric Co., Ltd., founded in 1921 and headquartered in Fukuoka, is a systems integrator for electric power and social infrastructure. The company offers a wide range of products and services, including centralized monitoring and control systems for power plants and substations, distribution line automatic control systems, power receiving/transforming and monitoring control systems for water/sewage and expressway facilities, power receiving/transforming systems for AI data centers and grid-connected storage facilities, and SaaS/AI-IoT systems for ports and healthcare. Its main customers include electric power companies such as Kyushu Electric Power, public infrastructure operators, renewable energy operators, and data center operators. In addition to domestic group companies, it also has overseas bases in China, Malaysia, the Philippines, and other locations. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company operates an order-based business model spanning five segments—Power Systems Division, Environment & Energy Division, Information Systems Division, Service Division, and Other—providing an integrated offering from product development and manufacturing to construction, engineering, and maintenance. The order backlog (¥37,374 million at the end of FY2025 (ending December 2025)) serves as a leading indicator, giving high visibility into revenue. While leveraging a technology licensing agreement with Hitachi, Ltd. (royalty of 2-3% of sales), the company provides total solutions that combine its own OT and IT technologies.

Company Strengths

In FY2025 (ending December 2025), consolidated orders received reached ¥39,183 million (up 30.8% year on year), and the order backlog reached ¥37,374 million (up 26.4% year on year). In particular, the order backlog of the Environment & Energy Division stood out at ¥24,874 million (up 38.2% year on year), reflecting a structure in which the accumulation of large-scale projects for AI data centers and grid-connected storage facilities underpins future sales.

Sales grew for five consecutive periods, from ¥24,596 million in FY2021 (ending December 2021) to ¥31,380 million in FY2025 (ending December 2025). Over the same period, operating profit expanded approximately 1.9-fold, from ¥1,406 million to ¥2,615 million, achieving an operating margin of 8.3% (up 1.4pt year on year). This was driven by cost reduction activities in the Power Systems Division (margin of 15.0%, up 2.4pt year on year) and margin improvement in the Environment & Energy Division (5.7%, up 2.9pt year on year).

With monitoring and control systems for power infrastructure (Power Systems Division) and power receiving/transforming systems for renewable energy, storage facilities, and data centers (Environment & Energy Division) as its two pillars, the company has a business structure capable of capturing both demand for renewal of aging social infrastructure and expanding decarbonization investment. In FY2025 (ending December 2025), sales of the Environment & Energy Division reached ¥12,994 million, making it the company's largest segment.

ENVALITH's Perspective

For the first quarter of FY2026 (ending December 2026), net sales came in at ¥9,574 million (up 12.6% year on year), operating profit at ¥1,280 million (up 16.3%), and profit attributable to owners of parent at ¥1,057 million (up 41.6%) — all strong results. Against the full-year forecast (net sales of ¥36,000 million, operating profit of ¥3,000 million), the company had already achieved 42.7% of the full-year operating profit target by the end of the first quarter, a high level of progress. While the full-year guidance remains unchanged, there is room for an upward revision if the profitability improvement in the Environment & Energy Division continues.

Segment profit at the Environment & Energy Division rose 110.8% year on year to ¥652 million, with the profit margin improving substantially to 16.6%. This was mainly driven by smooth progress on on-site construction work in the public sector, but since this depends on the timing of construction project progress, there is a risk of profit margin volatility from quarter to quarter. On the other hand, an increase in orders for large-scale projects for AI data centers and grid-connected storage facilities (supported by the external tailwind of expanding power demand) could also push up the medium- to long-term profit margin level, making the assessment of sustainability an important point to watch.

At the Information Systems Division, net sales grew 13.7% year on year to ¥439 million, while segment profit plunged 78.5% year on year to ¥11 million due to higher development costs. The Power Systems Division also saw net sales decline 2.7% year on year and segment profit fall 14.6%, reflecting weakness in the distribution equipment field. The upfront investment burden associated with the construction of the Hibikino R&D Center (construction in progress increased by ¥1,777 million) also continues, and it should be noted that these factors are weighing on earnings in the near term.

Growth Strategy

Capturing AI data center and renewable energy demand through three key initiatives: digital-first, decarbonization, and One Seiko

Expanding systems for centralized control centers (OT), Smart Security Systems, and AI/IoT solutions for ports and healthcare. In Q1 FY2026 (ending March 2026)*, Information Systems Division sales grew 13.7% year-on-year, but profit was squeezed by rising development costs. Technology infrastructure reinforcement is progressing through the construction of the Hibikino R&D Center (construction in progress increased by ¥1,777 million).

Expanding orders centered on solutions for solar power plants, grid-connected storage facilities, and AI data centers. In Q1 FY2026 (ending March 2026), Service Division sales grew 53.4% year-on-year, and Environment & Energy Division segment profit grew a notable 110.8% year-on-year. Order intake of ¥12,288 million (up 6.7% year-on-year) is a favorable leading indicator.

Strengthening collaboration with domestic and overseas group companies (Seiko Electric Construction Co., Ltd., and subsidiaries in China and Malaysia, among others) to reduce dependence on Kyushu Electric Power and diversify the customer base. The Power Systems, Environment & Energy, Information Systems, and Service Divisions function complementarily, with total sales across all segments reaching ¥9,574 million in Q1 FY2026 (ending March 2026).

Last updated: July 17, 2026