ENVALITH
新電元工業株式会社 logo

Shindengen Electric Manufacturing Co, Ltd.

6844・Prime Market・Electric Appliances

Official website
新電元工業株式会社 logo
Shindengen Electric Manufacturing Co, Ltd.6844

Business

Shindengen Electric Manufacturing Co., Ltd., founded in 1949, is a company listed on the Prime Market of the Tokyo Stock Exchange that manufactures and sells power electronics products combining semiconductor technology, circuit technology, and packaging technology. Its business consists of three segments: Power Devices Business (power semiconductors such as Diodes/Thyristors and Power MOSFET), Power Units Business (Electrical Components for Motorcycles and Electrical Components for Automobiles), and Power Systems Business (power supply units for communications infrastructure). Its main customers include Asian automobile and motorcycle manufacturers, centered on Honda-affiliated motorcycle manufacturers in India and Indonesia, as well as communications infrastructure operators and industrial equipment manufacturers. The company has 20 consolidated subsidiaries in Japan and overseas, and has established a global production and sales system centered on Asia. In January 2026, the company made Hadano Shindengen Co., Ltd., which succeeded Kyocera's power devices business, a subsidiary, expanding its product lineup.

Business Model

The Group adopts a vertically integrated model in which domestic and overseas manufacturing subsidiaries produce products for each segment, which are then purchased centrally by the Company and supplied to customers through domestic and overseas sales subsidiaries. Of net sales of ¥113,836 million (FY2026 (ending March 2026)), the Power Units Business (electrical components for motorcycles and automobiles in Asia) accounts for approximately 64%, followed by the Power Devices Business (approximately 29%) and the Power Systems Business (approximately 7%). Research and development expenses amount to 4.6% of net sales (¥5,203 million), and product competitiveness is maintained through collaboration between the Technology Development Center and each business division.

Company Strengths

Two Honda-affiliated motorcycle manufacturers (P.T. Astra Honda Motor at ¥12,522 million and Honda Motorcycle & Scooter India at ¥12,503 million) each account for approximately 11% of net sales, reflecting long-term business relationships built with major customers in India and the ASEAN region. This customer base forms an entry barrier that competitors would find difficult to replicate in a short period.

The company maintains an R&D structure spanning the entire technology domain across Power Devices, Power Units, and Power Systems, with R&D expenses of ¥5,203 million (4.6% of net sales) in FY2026 (ending March 2026). Broad-ranging technological achievements—including next-generation SiC devices, completion of 6th-generation MOSFET process development for automotive use, and wireless power transfer and robotics technologies—have been transferred to business divisions, with numerous patent applications filed.

In January 2026, the company made Hadano Shindengen Co., Ltd. (including its Taiwan subsidiary), which took over Kyocera's Power Devices Business, a subsidiary (acquisition cost of ¥2,271 million). This has accelerated the expansion of the product lineup for industrial equipment, with clear expansion effects confirmed: orders received in the Power Devices Business increased 22.1% year on year (¥37,579 million) and order backlog increased 60.3% year on year (¥10,942 million).

ENVALITH's Perspective

Net sales were ¥113,836 million (up 7.6% year on year), operating profit was ¥3,848 million (versus ¥128 million in the prior year), and profit attributable to owners of parent was ¥5,655 million (versus a loss of ¥2,436 million in the prior year), representing significant improvement at every profit level. However, net profit included extraordinary income of ¥3,106 million, comprising a gain on sale of investment securities of ¥2,461 million and a gain on sale of fixed assets of ¥399 million, among others, so underlying earning power should be assessed based on the operating profit level. The operating profit margin of 3.4% remains low, and sustained profitability improvement is a challenge.

The company's forecast for FY2027 (ending March 2027) is net sales of ¥121,200 million (up 6.5% year on year), operating profit of ¥4,000 million (up 3.9% year on year), and profit attributable to owners of parent of ¥2,700 million (down 52.3% year on year). The large decline in net profit is mainly due to the absence of the prior year's extraordinary income. The assumed exchange rate is 1 US$ = ¥152. External risks such as US tariff policy, geopolitical risk, weakening Asian currencies, and rising logistics costs are not factored into the earnings forecast, and warrant close attention as potential downside risks.

The largest segment, the Power Units Business, posted net sales of ¥72,806 million (up 7.6% year on year), representing higher sales, but operating profit declined to ¥3,847 million (down 22.7% year on year). In addition to the impact of weaker Asian currencies, increased expenses from resource allocation to electrification-related products such as Chargers for EV/PHEV squeezed profit. While electrification investment is essential for future growth, it structurally reduces profitability in the short term, making it important to assess the timing of investment recovery.

Growth Strategy

Accelerating growth toward the final year of the 17th Medium-Term Management Plan through the Kyocera business integration, expansion into the Indian market, and cultivation of electrification-related products

In January 2026, the Power Devices Business of Kyocera Corporation was transferred via company split. The company aims to expand its product lineup for industrial equipment and capture demand for power supply products and semiconductor manufacturing equipment driven by the expansion of AI-related investment. It will also promote new product development through technology integration to accelerate growth of the Power Devices Business.

The company is advancing the establishment of production and sales structures in India, which it positions as a key market. Against the backdrop of steady demand for motorcycle-related products in India and the ASEAN region, it is strengthening its local business foundation and preparing a structure capable of responding to future demand for electrification.

The company positions Chargers for EV/PHEV and EV charging infrastructure product groups as growth areas and is concentrating resources on them. During the current fiscal year, the EV charging infrastructure product group was transferred from the Power Systems Business to the Power Units Business, and management structures were established. While this will be a factor increasing costs in the short term, the company aims to cultivate it as a mid- to long-term revenue source.

The structural reforms undertaken in the previous fiscal year (FY2025, ended March 2025), which included recording business structure improvement expenses of ¥1,412 million, took effect in the current fiscal year. Operating profit turned from a loss of ¥2,247 million to a profit of ¥2,533 million, achieving the target. Going forward, the company aims to further improve profitability through synergies with the integrated Kyocera business.

Last updated: July 19, 2026