AIPHONE CO.,LTD.
6718・Prime Market・Electric Appliances
Business
Aiphone Co., Ltd. is a specialist manufacturer of intercoms and telecommunications equipment founded in 1948, handling everything from development to production, sales, and after-sales service for systems designed for detached houses, multi-dwelling units, medical and welfare facilities, offices, and public facilities. Domestically, the Japan Segment serves as the core business, accounting for approximately 75% of sales, while the company operates globally through a total of 13 companies, including overseas production bases in Thailand and Vietnam and sales subsidiaries in North America, Europe, Oceania, and Southeast Asia. The company exports to approximately 70 countries worldwide and is also strengthening its development capabilities through three software development subsidiaries (Software Sapporo, Tessio Technology, and Nippon Micro Link).
Business Model
A vertically integrated model in which the company manufactures products at domestic (Japan and Aiphone Communications) and Thailand/Vietnam production bases under its own brand, and delivers them to end customers through regional sales subsidiaries. The main pillar of revenue is renewal demand for domestic multi-dwelling unit, care, and business markets, forming a structure that compensates for the impact of declining new housing starts. Capital expenditures and R&D expenses are funded entirely through internal resources, maintaining a debt-free management policy.
Company Strengths
External customer sales in the Japan Segment totaled ¥47,558 million (FY2026, ending March 2026), supported by a product portfolio covering all target markets including multi-dwelling units, care facilities, business use, and detached houses. In multi-dwelling unit renewals, the company differentiates itself by standard-equipping its mainstay Pabbit (Delivery Solution Service), and its proprietary product and service lineup is contributing to order expansion.
At the end of FY2026 (ending March 2026), net assets stood at ¥70,034 million against liabilities of ¥9,923 million, reflecting extremely low financial leverage. The company continues its debt-free management approach, funding capital expenditures, R&D expenses, and dividends entirely from internal resources. Cash and cash equivalents remained at ¥22,817 million, indicating strong financial resilience against external environmental changes.
Group products are manufactured at two overseas bases, Aiphone Communications (Thailand) in Thailand and Aiphone Communications (Vietnam) in Vietnam, with combined production output of ¥18,026 million (on a sales price basis) in FY2026 (ending March 2026). The company continues to invest in automation and labor-saving measures, building a stable supply system while diversifying risk associated with reliance on a single production site.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥62,983 million (down 0.5% year on year), marking the first revenue decline in five periods. Operating income fell sharply to ¥2,802 million (down 26.5% year on year), a second consecutive period of large profit decline, with the drop from ¥5,268 million in FY2024 (ended March 2024) being particularly notable. The factors behind the profit decline were: a decrease in sales in the North America Segment due to distributor inventory adjustments; increased costs from higher development expenses and persistently high parts prices; and delayed delivery of certain products in the Japan Segment. On the other hand, the care market (up 13.9% year on year), the business-use market (up 7.3% year on year), and multi-dwelling units (up 2.3% year on year) saw revenue increases. Comprehensive income rose to ¥5,396 million (up 35.8% year on year), with the foreign currency translation adjustment account (up ¥2,034 million) and valuation difference on available-for-sale securities (up ¥901 million) boosting net assets. For FY2027 (ending March 2027), operating income is forecast at ¥4,000 million (up 42.7% year on year), but this forecast does not yet factor in parts price risk.
Growth Strategy
Pursuing growth along four axes: deepening domestic renewal demand, expanding Pabbit, strengthening overseas operations, and enhancing development capabilities
Amid rising security needs, the company continues to strengthen its order-taking and installation capabilities for multi-dwelling unit renewals. In the care market, it is promoting solution proposals centered on nurse call systems, supported by tailwinds from subsidy-driven DX adoption support. In the business market, it is enhancing proposals for network-compatible products addressing needs for unmanned and labor-saving operation of public facilities. In FY2026 (ending March 2026), results became evident, with the care market up 13.9% and the business market up 7.3%.
Active promotion of the delivery solution service "Pabbit," which is standard-equipped in the mainstay products for multi-dwelling units, has contributed to increased sales in multi-dwelling unit renewals. Through strengthened collaboration with delivery service providers and others, the company aims to resolve the redelivery problem and expand its services, seeking differentiation and recurring revenue. In FY2026 (ending March 2026), the multi-dwelling unit segment achieved revenue growth of 2.3% year on year.
In North America, the company expects demand recovery following the completion of inventory adjustments at sales distributors, and is promoting expanded sales of IP Network Intercom Systems. In Europe, despite ongoing price competition with Chinese products, the segment turned to an operating profit (¥35 million) in FY2026 (ending March 2026). The company aims to expand sales of IP Network Intercom Systems for the care and business markets by strengthening its sales structure in Southeast Asia, centered on Singapore. The next fiscal year's assumed exchange rate (1 USD = ¥158) reflects a yen appreciation direction, which is expected to have a positive effect on operating profit.
The company strengthened its software development structure by making Software Sapporo, Teshio Technology, and Nihon Micro Link subsidiaries. Multiple large-scale R&D projects are currently underway simultaneously, with R&D expenses trending upward at ¥4,990 million in FY2026 (ending March 2026) and a planned ¥5,804 million for the next fiscal year. The company aims to improve product competitiveness while efficiently utilizing development resources. With costs remaining elevated, commercializing and monetizing development results remains a challenge.
The company continues to invest in promoting automation and labor saving, mainly at its overseas production bases in Thailand and Vietnam. Capital investment actually made in FY2026 (ending March 2026) totaled ¥3,580 million (with construction in progress accounting for the majority at ¥2,810 million), while the plan for the next fiscal year calls for a significant increase to ¥4,560 million, centered on machinery and equipment (¥1,192 million) and tools, furniture and fixtures (¥802 million). In parallel, the company is also strengthening production management to maintain appropriate inventory levels of products and components.
Last updated: July 19, 2026