ENVALITH
愛知時計電機株式会社 logo

Aichi Tokei Denki Co., Ltd.

7723・Prime Market・Precision Instruments

Official website
愛知時計電機株式会社 logo
Aichi Tokei Denki Co., Ltd.7723

Business

Aichi Tokei Denki was founded in 1898 and is listed on the Nagoya Stock Exchange Premier Market and the Tokyo Stock Exchange Prime Market as a measuring instrument manufacturer. Its core Measuring Instruments Business consists of four fields: Gas-related Equipment (city gas and LP gas meters, etc.), Water Supply-related Equipment (water and sewage meters, smart meters, etc.), Civil-use Sensors & Systems (electromagnetic and ultrasonic flow meters, etc.), and Instrumentation (measurement, monitoring, and control systems for government demand). While its main customers are domestic gas and water utilities, the company is also expanding globally into China, Taiwan, Vietnam, North America, and Europe. The group consists of the company itself, 6 subsidiaries, and 2 affiliated companies, handling manufacturing, logistics, and sales in an integrated manner.

Business Model

The company's core earnings derive from the manufacturing and sale of gas and water meters and instrumentation systems, capturing stable replacement demand from domestic gas utilities, water utilities, and government agencies. In addition, it operates the "Aichi Cloud" data distribution service for LPG dealers, aiming to build up service revenue associated with hardware sales. Overseas, the company combines manufacturing and sales through local subsidiaries in China, Taiwan, and Vietnam with exports to North America and Europe.

Company Strengths

The company began manufacturing water meters in 1927 and gas meters in 1950, building long-term business relationships with major domestic gas and water utilities. In FY2026 (ending March 2026), sales of Gas-related Equipment reached ¥27,484 million and Water Supply-related Equipment reached ¥20,470 million, reflecting a business foundation that stably captures replacement demand.

In September 2019, the company began operating "Aichi Cloud," a data distribution service for LPG operators, accumulating a track record in the LPG sector, which is an early-adopting market for smart technology. The company is also participating in demonstration trials of smart meters equipped with LPWA communication functions in the water supply field, developing a product and service foundation in preparation for the full-scale advancement of smart technology in the city gas and water supply markets.

As of the end of FY2026 (ending March 2026), the equity ratio remained at a high level of 74.8%, with total net assets reaching ¥52,583 million. The company also secured cash and deposits of ¥9,174 million, and has entered into a commitment line agreement with financial institutions totaling ¥4,000 million, giving it the financial flexibility to pursue both growth investments and shareholder returns.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥59,116 million (up 8.9% year on year), operating profit reached ¥4,710 million (up 19.5%), and profit attributable to owners of parent reached ¥4,801 million (up 35.9%), with all indicators marking record highs. The operating margin improved to 8.0% (from 7.3% in the previous period), driven by the effect of higher sales combined with a positive contribution from the sales product mix, which pushed the margin improvement. The recording of a gain on sale of investment securities of ¥1,242 million as extraordinary income also contributed to the substantial increase in net profit. As an external factor, the entry into a recovery phase in demand for LPG meter replacement was a tailwind.

In FY2026 (ending March 2026), costs were recorded for countermeasures related to defects in certain products (a new provision for product warranties of ¥1,129 million was recorded), and selling, general and administrative expenses also increased 18.5% from ¥8,443 million to ¥10,009 million. These cost increase factors partially offset the effect of higher sales. For the FY2027 (ending March 2027) forecast, continued increases in parts procurement costs and labor costs are expected, and absorbing these through productivity improvements is a challenge. Net profit is forecast to decline 4.0% year on year to ¥4,610 million, with the impact of the drop-off in extraordinary income expected to become apparent.

The annual dividend for FY2026 (ending March 2026) was ¥113 (versus ¥75 in the previous period), a 50.7% increase, and the payout ratio rose to 36.2% (from 32.6% in the previous period). In addition to total dividends of ¥1,736 million, ¥167 million in share buybacks was carried out. The dividend forecast for FY2027 (ending March 2027) is ¥120 (with a payout ratio forecast of 39.9%), planning a further dividend increase. Net assets per share increased to ¥3,427.51 (from ¥3,041.74 in the previous period), and ROE improved to 9.7% (from 7.8% in the previous period). The policy of continuing to sell cross-shareholdings is also being maintained, and efforts toward improving capital efficiency are viewed favorably.

Growth Strategy

Aiming to achieve the goals of the Medium-Term Management Plan 2026 through three pillars: smart technology adoption, global expansion, and DX promotion

Capitalizing on the recovery of replacement demand for household LP gas meters, the company is concurrently promoting sales expansion of products related to the data distribution service "Aichi Cloud." Replacement demand is expected to continue into FY2027 (ending March 2027), with efforts to improve unit prices through IoT value-added features.

The company is promoting the addition of smart meter-related products in domestic public and private markets, as well as the continued expansion of water meter exports to North America. In FY2026 (ending March 2026), Water Supply-related Equipment sales achieved ¥20,470 million, up 8.6% year on year, with increased exports contributing to the growth.

The company secured large-scale projects through enhanced sales structure, proposal capability, and strengthened construction capabilities. In FY2026 (ending March 2026), progress on projects spanning multiple fiscal years drove a significant increase in Instrumentation sales to ¥8,399 million, up 34.1% year on year.

The company is promoting increased exports of city gas-related equipment to China through the joint venture established in April 2024, as well as expanding sales of flow sensors to Europe and the United States. Civil-use Sensors & Systems achieved a 2.9% increase in sales year on year, as the increase in exports to Europe and the US offset the domestic decline.

The company continues to sell cross-shareholdings to book extraordinary gains and improve capital efficiency. In FY2026 (ending March 2026), it recorded a gain on sale of investment securities of ¥1,242 million as an extraordinary gain. The company also plans to sell cross-shareholdings in FY2027 (ending March 2027) and plans an annual dividend of ¥120 (payout ratio of 39.9%).

Last updated: July 19, 2026