| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1353.80 | 34 |
| Intrinsic value (DCF) | 348.21 | -66 |
| Graham-Dodd Method | 1262.56 | 25 |
| Graham Formula | n/a |
Sansha Electric Manufacturing Co., Ltd. is a leading Japanese industrial company specializing in electric, semiconductor, and medical machinery manufacturing. Founded in 1933 and headquartered in Osaka, Sansha Electric operates both domestically and internationally, offering a diverse product portfolio including discrete semiconductors (triacs, thyristors, rectifier diodes), power modules, and power supply solutions for metal surface treatment, photovoltaic inverters, and welding machines. The company also provides installation services for machinery, electrical wiring, and piping. Operating in the Electrical Equipment & Parts sector, Sansha Electric plays a critical role in Japan's industrial supply chain, supporting industries from renewable energy to medical technology. With a market capitalization of ¥10.45 billion (as of latest data), the company maintains a stable financial position, underscored by its consistent revenue growth and profitability. Its expertise in power electronics and semiconductor applications positions it as a key player in Japan's industrial and technological advancement.
Sansha Electric Manufacturing presents a stable investment opportunity with moderate growth potential in Japan's industrial and semiconductor sectors. The company's diversified product portfolio, including high-demand semiconductor components and power supply solutions, provides resilience against market fluctuations. With a solid financial position (¥5.83 billion in cash, ¥1.16 billion in debt) and a healthy net income of ¥2.96 billion (FY 2024), Sansha Electric demonstrates operational efficiency. The company's low beta (0.72) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its relatively small market cap and limited international presence may constrain rapid growth. The dividend yield (based on ¥40/share) is modest, making it more suitable for long-term investors seeking steady returns in the industrials sector. Risks include exposure to semiconductor cyclicality and competition from larger global players.
Sansha Electric Manufacturing holds a niche but stable position in Japan's electrical equipment and semiconductor market. Its competitive advantage lies in its specialized product range, particularly in power modules and discrete semiconductors, where it serves industrial and renewable energy applications. The company benefits from long-standing expertise in power electronics, evidenced by its 90-year history. However, Sansha operates in a highly competitive segment dominated by larger global players like Toshiba and Mitsubishi Electric. Its smaller scale limits R&D spending compared to multinational rivals, potentially hindering innovation in advanced semiconductor technologies (e.g., SiC and GaN). Sansha's strength lies in its domestic market penetration and reliable supply chain relationships in Japan, but it lacks the global distribution network of its larger competitors. The company's focus on industrial and medical applications provides some insulation from consumer electronics volatility. Its financial stability (positive operating cash flow of ¥2.3 billion) allows for steady reinvestment, though capex (¥-882 million) appears modest compared to industry leaders. Sansha's competitive positioning is best described as a regional specialist with stable but limited growth prospects unless it expands into higher-value semiconductor segments or increases international presence.