| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1465.91 | 31 |
| Intrinsic value (DCF) | 396.03 | -65 |
| Graham-Dodd Method | 1472.07 | 31 |
| Graham Formula | 1409.68 | 26 |
Alinco Incorporated (5933.T) is a Japan-based company specializing in the development, manufacturing, and sale of scaffolding equipment, construction materials, and home equipment. Founded in 1938 and headquartered in Osaka, the company operates across four key segments: Construction Materials, Scaffolding Material Rental, Home Equipment, and Electronic Equipment. Alinco serves both domestic and international markets, offering a diverse product portfolio that includes scaffolding materials, logistics storage solutions, DIY products, and wireless communication devices. The company also engages in real estate development and electronic equipment assembly. With a strong presence in Japan's construction and industrial sectors, Alinco leverages its long-standing expertise to provide high-quality, durable products tailored to infrastructure and home improvement needs. Its diversified business model and commitment to innovation position it as a key player in the technology-driven hardware and equipment industry.
Alinco Incorporated presents a stable investment opportunity with a market capitalization of ¥19.7 billion and a beta of 0.307, indicating lower volatility compared to the broader market. The company reported revenue of ¥57.9 billion and net income of ¥1.99 billion in FY 2024, with diluted EPS of ¥101.06. While operating cash flow was positive at ¥1.69 billion, significant capital expenditures (¥5.4 billion) suggest ongoing investments in growth. The company maintains a conservative dividend policy, offering ¥43 per share. Key risks include high total debt (¥25.3 billion) and exposure to cyclical construction markets. However, its diversified product lines and established market presence in Japan provide resilience. Investors should weigh its steady performance against sector-specific risks.
Alinco Incorporated holds a competitive edge in Japan's scaffolding and construction materials market through its diversified product offerings and integrated rental services. The company's long-standing reputation (founded in 1938) and expertise in scaffolding solutions for low-to-high-rise buildings differentiate it from smaller regional players. Its Home Equipment segment, featuring DIY and aluminum products, adds revenue diversification. However, Alinco faces stiff competition from larger global construction equipment manufacturers and domestic rivals with stronger financial resources. Its electronic equipment segment, though niche, competes with specialized tech firms. The company's competitive advantage lies in its localized supply chain and rental business model, which ensures recurring revenue. Yet, reliance on Japan's construction sector—subject to economic cycles—poses a vulnerability. To sustain growth, Alinco must expand internationally and innovate in lightweight, modular scaffolding solutions.