DENKI KOGYO CO.,LTD.
6706・Prime Market・Electric Appliances
Business
Denki Kogyo Co., Ltd. is a Tokyo Stock Exchange Prime Market-listed company founded in 1950, built on two core business pillars: Telecommunications-Related Business and High-Frequency-Related Business. In the Telecommunications-Related Business, the company handles the manufacturing, construction, and sale of various antennas, steel towers, Disaster Prevention Administrative Radio Systems, defense equipment, and AI Solution Systems, with major customers including telecommunications carriers such as NTT DOCOMO and government agencies such as the Ministry of Defense and local governments. In the High-Frequency-Related Business, the company manufactures and sells High-Frequency Induction Heating Equipment and provides High-Frequency Heat Treatment Contract Processing, with major customers being automobile manufacturers and parts manufacturers. The company has 13 consolidated subsidiaries in Japan and overseas, and is a global group with production and sales bases in the United States, Thailand, South Korea, China, Mexico, and Vietnam. Consolidated net sales for FY2026 (ending March 2026) were ¥35,446 million.
Business Model
In the Telecommunications-Related Business, the company combines manufacturing and sales of equipment and materials (net sales of ¥11,167 million) with construction work (¥14,220 million), adopting a continuous order-taking model that has built up an order backlog of ¥17,257 million. In the High-Frequency-Related Business, in addition to equipment sales, stable revenue is secured through High-Frequency Heat Treatment Contract Processing. The Equipment Leasing Business & Electricity Sales Business functions as a stable, high-margin (approximately 53%) revenue source through utilization of the FIT system and in-house leasing. Orders received increased 11.8% year on year to ¥38,873 million, with this leading indicator performing well, and contribution to next period's sales is expected.
Company Strengths
In defense-related operations, the company has secured multi-year orders for reinforcement work on the guy wires of the Ebino Transmitting Station steel tower for the Kumamoto Defense Bureau, including a project scheduled for completion in September 2029, securing a long-term backlog. The order backlog for the Telecommunications-Related Business reached ¥17,257 million (up 18.6% year on year), reflecting the continuing upward trend in demand for equipment and defense facilities amid increased defense spending. The backlog for government and public agencies stood at ¥4,763 million (construction: ¥4,051 million; equipment: ¥711 million).
The company has a track record of implementing its proprietary technologies in society, including completing development and beginning commercial delivery of 700MHz-band 5G wireless devices, developing and commercializing O-RAN-compliant wireless devices, and obtaining Japan's first commercial license for 5.7GHz-band spatial transmission-type wireless power transmission. R&D expenses totaled ¥987 million (FY2026 (ending March 2026)), with industry-academia collaboration promoted centered on the Wireless Research Institute and the Future Research Institute. The company has also been accumulating a track record of solutions combining Cyber Core Co., Ltd.'s image AI technology with wireless communication technology.
The company has established production, sales, and maintenance bases in the United States, Thailand, South Korea, China, and Mexico, building an international service system for High-Frequency Induction Heating Equipment. In June 2024, the company newly established the Tokai Heat Treatment Research Center in Okazaki City, Aichi Prefecture, launching a prototyping base to address EV adoption. Leading indicators for the High-Frequency-Related Business have improved, with order intake of ¥10,781 million (up 12.1% year on year) and an order backlog of ¥3,926 million (up 26.7% year on year).
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥28,864 million in FY2024 (ending March 2024) and recovered to ¥35,446 million in FY2026 (ending March 2026), up 8.8% year on year, approaching the FY2022 (ending March 2022) level for the first time in five periods. Operating profit continued to improve, reaching ¥1,219 million (up 30.4% year on year) with an operating margin of 3.4%. Profit attributable to owners of parent came to ¥1,903 million (up 144.9% year on year), though it should be noted that this was supported by extraordinary income of ¥1,890 million, including ¥879 million in gains from investment partnership operations and ¥862 million in gains on sale of investment securities. As for external factors, increased defense spending, demand for the Disaster Prevention Administrative Radio System, and a recovery in 5G capital investment drove the Telecommunications-Related Business, while a slowdown in automotive-related capital investment stemming from U.S. tariff policy weighed on the High-Frequency-Related Business. For FY2027 (ending March 2027), the company forecasts revenue of ¥36,500 million (up 3.0% year on year) and operating profit of ¥1,650 million (up 35.3% year on year).
Growth Strategy
Under DKK-Plan2028, establishing a revenue-generating framework in the defense/disaster prevention, AI solutions, and high-frequency new fields businesses
Against the backdrop of increased defense budget spending, the company is promoting stable supply of equipment and proactively proposing maintenance and inspection services for existing facilities. Following the five-year extension of emergency disaster prevention and mitigation bonds, it continues to develop demand for the Disaster Prevention Administrative Radio System among local governments. Orders received in the Telecommunications-Related Business for FY2026 (ending March 2026) expanded steadily, up 11.7% year on year to ¥28,092 million.
In the AI Solution business developed in collaboration with Cybercore Co., Ltd., organizational restructuring has already been implemented to strengthen proposal and development capabilities. The company will continue to build a track record in solutions addressing social issues, including people-flow and traffic analysis, and cultivate this as a new source of revenue.
The company is advancing the sophistication of superheated steam technology and raising brand awareness through exhibitions. In FY2026 (ending March 2026), it secured its first order for superheated steam equipment equipped with powder sterilization technology in the food-related field. This is a key initiative to diversify revenue sources away from dependence on the automotive sector.
In FY2026 (ending March 2026), the company acquired ¥1,001 million of treasury stock and cancelled shares equivalent to ¥2,234 million, reducing the number of shares issued. The lower limit of DOE was raised from 2.0% to 2.5%, and an annual dividend of ¥100 (up ¥20 year on year) was implemented. For FY2027 (ending March 2027), a dividend of ¥105 is planned, clearly indicating continued strengthening of shareholder returns.
On April 1, 2026, the company transitioned part of its defined benefit corporate pension plan to a defined contribution pension plan. Due to the partial termination of the retirement benefit plan, an extraordinary gain is expected to be recorded in the following consolidated fiscal year (the amount is currently being calculated). This aims to improve the financial condition and reduce future retirement benefit obligation risk.
Last updated: July 19, 2026