ALLIED TELESIS HOLDINGS K.K.
6835・Standard Market・Electric Appliances
Japan
The largest and most important segment, accounting for approximately 73% of Group sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) - Q1 FY2026 (ending March 2026) | ¥9,568 million | ¥9,014 million (Q1 FY2025, ended March 2025) | ↑ |
| Segment Profit - Q1 FY2026 (ending March 2026) | ¥1,002 million | ¥903 million (Q1 FY2025, ended March 2025) | ↑ |
| Net Sales (External Customers) - Full-Year Results (Reference) | ¥33,222 million (Full-Year FY2025, ended March 2025) | – | — |
| Segment Profit - Full-Year Results (Reference) | ¥2,321 million (Full-Year FY2025, ended March 2025) | – | — |
| Year-on-Year Change in Net Sales | +6.2% | – | ↑ |
| Share of Group Net Sales (Q1) | Approx. 72.9% | Approx. 70.3% (Q1 FY2025, ended March 2025) | ↑ |
Business Details
As the core business hub of the Allied Telesis Group, this segment is responsible for the sale of information and communications/networking equipment, primarily switches and Wireless LAN Products. Major customers include Daiwabo Information System Co., Ltd. and other domestic distributors and SIers. Its main markets are local governments, education, healthcare, manufacturing, and general enterprises, and in addition to network equipment sales, it also provides Maintenance Services and Implementation Support Services. In the first quarter of FY2026 (ending March 2026), steady demand in the education, healthcare, and public sectors, along with Switch Products, contributed to sales growth.
Recent Overview
Steady demand in the education, healthcare, and public sectors drove Q1 net sales up 6.2% year on year
In the first quarter of FY2026 (ending March 2026), NEXT GIGA-related projects in the education sector, in-hospital network renewal demand in the healthcare sector, and network renewal demand from local governments in the public sector all trended steadily. Although there was a pullback from certain large-scale projects recorded in the same period of the previous year, this was absorbed through the accumulation of projects across multiple sectors. Switch Products continued to contribute to sales growth, resulting in net sales to external customers of ¥9,568 million (up 6.2% year on year) and segment profit of ¥1,002 million (up 11.0% year on year).
Key Products
Growth Drivers
- Full-scale emergence of demand for network equipment and Wireless LAN Products renewal for schools and local governments in connection with NEXT GIGA (second phase of the GIGA School Program)
- Demand for network renewal at local governments and medical institutions accompanying the strengthening of zero-trust security and promotion of DX
- Expansion of demand for data center network equipment driven by increased data traffic from the spread of generative AI
- Continued needs among manufacturers and general enterprises for higher reliability, higher performance, and enhanced security of factory and office networks
- Improvement in unit prices and profitability through high-value-added proposals and the acquisition of large-scale projects
Risks
- Risk of a downturn in demand following its peak, given that NEXT GIGA-related demand depends on renewal cycles
- Customer concentration risk due to sales concentration with Daiwabo Information System Co., Ltd.
- Risk of supply chain instability due to tight supply of memory components and other materials driven by the rapid expansion of AI-related demand
- Risk of rising procurement costs due to the continuation of a weak yen (foreign exchange effects have become apparent as a factor increasing selling, general and administrative expenses alongside rising personnel costs)
- Risk of margin pressure due to intensifying price competition with competitors
Last updated: March 30, 2026