| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5866.46 | 50 |
| Intrinsic value (DCF) | 1067.19 | -73 |
| Graham-Dodd Method | 9384.34 | 140 |
| Graham Formula | 9115.52 | 133 |
Oi Electric Co., Ltd. (6822.T) is a Japanese technology company specializing in information and communication equipment for social infrastructure. Headquartered in Yokohama, the company provides a range of products including optical transport network systems, media converters, and electronic measuring instruments. Oi Electric also offers software solutions, construction and maintenance services for communication networks, and operates in ancillary businesses like restaurants and building management. Founded in 1950, the company plays a critical role in Japan's telecommunications and infrastructure sectors. With a market capitalization of approximately ¥3.5 billion, Oi Electric serves as a niche player in the communication equipment industry, focusing on high-precision measurement and transmission technologies. Its diversified operations, including temporary staffing and facility management, provide additional revenue streams. Investors looking for exposure to Japan's tech-driven infrastructure sector may find Oi Electric an intriguing option due to its specialized product portfolio and long-standing industry presence.
Oi Electric Co., Ltd. presents a mixed investment profile. The company operates in a stable niche within Japan's communication equipment sector, supported by consistent demand for infrastructure-related technologies. With a revenue of ¥28.1 billion and net income of ¥759.5 million in FY2024, it demonstrates modest profitability. However, its high total debt (¥6.58 billion) relative to cash reserves (¥2.88 billion) raises liquidity concerns. The negative beta (-0.202) suggests low correlation with broader market movements, potentially offering defensive characteristics. The dividend yield, based on a ¥100 per share payout, may appeal to income-focused investors, but the company's growth prospects appear limited given its small market cap and narrow focus. Investors should weigh its specialized market position against financial leverage and sector competition.
Oi Electric Co., Ltd. competes in Japan's communication equipment market with a focus on optical networks and precision measurement tools. Its competitive advantage lies in deep technical expertise and long-term relationships within Japan's infrastructure sector. The company's optical transport network systems cater to specialized needs, differentiating it from broader telecom equipment providers. However, its small scale (¥3.5B market cap) limits R&D spending compared to global giants, potentially hindering innovation in fast-evolving fields like 5G. Oi Electric's diversification into services (construction, staffing) provides stability but dilutes tech focus. While its negative beta indicates resilience to market swings, this may also reflect limited growth expectations. The company's real strength is its entrenched position in Japan's niche infrastructure markets, but it faces pressure from both domestic tech firms and multinationals offering integrated solutions. Its ability to maintain margins (2.7% net margin in FY2024) amidst pricing competition will be crucial for future competitiveness.