| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1175.61 | -17 |
| Intrinsic value (DCF) | 15623.84 | 1006 |
| Graham-Dodd Method | 2104.02 | 49 |
| Graham Formula | 4606.07 | 226 |
Sanyo Engineering & Construction Inc. (1960.T) is a leading Japanese engineering and construction firm specializing in electrical facility construction, security systems, and disaster prevention infrastructure. Headquartered in Tokyo and founded in 1937, the company operates across public, commercial, medical, and industrial sectors, providing comprehensive solutions including air conditioning, fire safety, water supply, and power distribution systems. Sanyo Engineering also engages in real estate leasing and construction consultancy, reinforcing its diversified industrial footprint. With a market cap of ¥12.96 billion (as of latest data), the company serves both domestic and international markets, though its financial performance has recently faced challenges, including a net loss of ¥709 million in FY2024. Despite this, its long-standing expertise in electrical and facility engineering positions it as a key player in Japan's infrastructure development sector.
Sanyo Engineering & Construction presents a mixed investment profile. While the company benefits from a stable niche in Japan's engineering and construction sector, its recent financials show concerning trends, including negative net income (-¥709M) and operating cash flow (-¥660M). The diluted EPS of -¥44.66 and high capital expenditures (¥1.53B) further highlight near-term risks. However, its low beta (0.001) suggests minimal correlation with broader market volatility, potentially appealing to risk-averse investors. The dividend yield (¥40/share) offers some income appeal, but sustainability is questionable given cash flow challenges. Investors should weigh its established market position against operational inefficiencies and sector-specific headwinds like Japan's stagnant construction demand.
Sanyo Engineering & Construction competes in Japan's fragmented engineering and construction sector, where differentiation hinges on technical specialization and project execution. Its core advantage lies in integrated electrical and facility solutions—unlike general contractors, Sanyo focuses on high-value niches like disaster prevention and power distribution, which command premium margins. However, the company lags behind larger peers in scale and overseas diversification, limiting revenue resilience. Its recent losses and negative cash flow also reflect weaker cost management compared to industry leaders. While its expertise in regulatory-heavy sectors (e.g., medical facilities) provides sticky client relationships, competition from tech-savvy firms adopting BIM and IoT solutions threatens its traditional service model. The lack of significant international exposure (despite operating 'internationally') further caps growth potential relative to globalized rivals.