ENVALITH
澤藤電機株式会社 logo

SAWAFUJI ELECTRIC CO.,LTD.

6901・Standard Market・Electric Appliances

Official website
澤藤電機株式会社 logo
SAWAFUJI ELECTRIC CO.,LTD.6901

Business

Sawafuji Electric Co., Ltd., founded in 1919, is a long-established electrical equipment manufacturer that operates three business segments under the concept of "generating, storing, and using electricity": Electrical Equipment for commercial vehicles (Starters for Trucks and Buses, Alternator, HV/EV Motors, etc.), portable generators (in-house brand "ELEMAX"), and electric refrigerators for vehicles and marine use (in-house brand "ENGEL" (Portable Refrigerator)). The company's principal customer is Hino Motors, with its core business centered on supplying parts to domestic commercial vehicle manufacturers. It conducts global operations through three subsidiaries (including those in Australia and Thailand), and reported consolidated net sales of ¥23,601 million for FY2025 (ended March 2025). The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

In the Electrical Equipment Business, which accounts for approximately 63% of revenue, the company manufactures and delivers starters, alternators, HV/EV motors, and other products to order for commercial vehicle manufacturers such as Hino Motors. The Generator Business combines OEM production with global sales under the in-house brand "ELEMAX," while the Refrigerator Business operates under the "ENGEL" brand, primarily in Australia. The company maintains a structure of continuous capital expenditure (¥1,771 million in FY2025 (ended March 2025)) and R&D spending (¥817 million in the same period) to sustain product competitiveness.

Company Strengths

Since its founding in 1919, the company began with the manufacture of automotive starters and alternators, and started manufacturing and selling HV motors in 2019 and EV motors in 2022. Core technologies including winding technology have been evolved for commercial electric vehicles, and this technological continuity forms the foundation for new product development.

In FY2025 (ended March 2025), the Electrical Equipment Business recorded segment sales of ¥14,880 million and segment profit of ¥1,436 million (profit margin of 9.7%). This significantly exceeds the company-wide operating profit of ¥76 million, making it the substantial pillar of group earnings.

In the Refrigerator Business, the company operates under the "ENGEL" brand mainly in Australia, maintaining sales of ¥4,653 million and a segment profit margin of 10.3% in FY2025 (ended March 2025). In the Generator Business, "ELEMAX" is sold worldwide and has earned high evaluations for quality and reliability at construction sites, disaster sites, and elsewhere.

ENVALITH's Perspective

Net income attributable to owners of the parent for FY2026 (ending March 2026) came in at just ¥33 million (down 86.4% year on year). Although core operations improved, with operating profit of ¥312 million and ordinary profit of ¥525 million, this result was mainly due to the recording of ¥365 million in special losses, comprising ¥273 million in tender offer-related expenses associated with the tender offer by ARTS-4 Co., Ltd. and an impairment loss of ¥85 million. Such one-time expenses are not expected to recur after delisting, but financial disclosure is expected to be limited following the company's transition to a wholly owned subsidiary.

Cash flow from operating activities for FY2026 (ending March 2026) was negative ¥376 million (compared with negative ¥268 million in the previous period), marking two consecutive periods of negative operating cash flow. This was mainly attributable to an increase in trade receivables of ¥534 million and an increase in inventories of ¥534 million, reflecting continued expansion of working capital. In financing activities, short-term borrowings increased by a net ¥2,024 million, and interest-bearing debt (short-term borrowings of ¥6,390 million plus long-term borrowings of ¥798 million) totaled ¥7,188 million, up ¥2,422 million year on year. The equity ratio declined from 50.1% to 46.8%, and financial leverage is expected to rise further once a borrowing facility of up to ¥13,000 million from ARTS-4 is added following delisting.

The company has explicitly cited the downturn in the Southeast Asian automobile market and delays in the timing of the shift to electrification of commercial vehicles as clear risks. In the Electrical Equipment Business, sales to major domestic customers have declined, a situation the company is offsetting through new OEM production contracts and recovery of development costs for electrification products. Externally, the impact of U.S. trade policy (tariffs) has also partially materialized, and there remains a risk of this spreading to the Generator Business and Refrigerator Business, which are highly dependent on exports. Since earnings forecasts and disclosures will cease after delisting, ongoing monitoring by investors will become difficult.

Growth Strategy

Realization of "Challenge 2030" centered on responding to commercial vehicle electrification and strengthening in-house brands

Promoting the development of electrification products such as HV/EV Motors and ECU (Electronic Control Unit), aiming to increase development cost recovery income and secure mass production orders. In FY2026 (ending March 2026), the increase in development cost recovery for electrification products contributed to revenue growth in the Electrical Equipment Business, and the company continues to expand its product lineup in preparation for the full-scale shift toward commercial vehicle electrification.

Promoting the acquisition of new OEM production projects to offset declining sales to major domestic customers. New OEM production began in FY2026 (ending March 2026), contributing to an increase in sales of the Electrical Equipment Business. The company aims to improve fixed cost absorption by expanding OEM production utilizing its existing manufacturing infrastructure.

Sales of the Generator "ELEMAX" grew significantly, up 36.1% year on year in FY2026 (ending March 2026), driven by increases in both OEM production and in-house brand sales. For the Refrigerator "ENGEL", local sales in Australia increased, improving the segment profit margin to 13.0%. The company is maintaining profitability through a combination of passing on rising procurement costs to prices and reducing costs.

Following a tender offer conducted from December 22, 2025 to February 9, 2026, ARTS-4 Co., Ltd. acquired 56.65% of the company's shares. At the extraordinary general meeting of shareholders on April 14, 2026, a share consolidation (653,500 shares into 1 share) was approved, with delisting scheduled for May 15, 2026. After delisting, the company will shift to fundraising based on a revolving loan agreement with ARTS-4 (with an upper limit of ¥13,000 million).

Last updated: July 17, 2026