| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2618.66 | 19 |
| Intrinsic value (DCF) | 1516.18 | -31 |
| Graham-Dodd Method | 2349.11 | 7 |
| Graham Formula | 3181.71 | 45 |
Aisan Industry Co., Ltd. (7283.T) is a leading Japanese automotive parts manufacturer specializing in fuel systems, engine components, and emission control products. Founded in 1938 and headquartered in Obu, Japan, the company serves both domestic and international markets with a diverse product portfolio including fuel pumps, throttle bodies, EGR valves, and hydrogen injectors. Aisan Industry plays a critical role in the automotive supply chain, catering to traditional internal combustion engines as well as emerging alternative fuel technologies like LPG, CNG, and hydrogen. As part of the Auto - Parts sector within the Consumer Cyclical industry, the company benefits from Japan's strong automotive manufacturing base while facing global competition in component innovation and cost efficiency. With a market capitalization of approximately ¥118 billion, Aisan maintains stable financials and continues to invest in R&D for next-generation mobility solutions.
Aisan Industry presents a stable investment opportunity with moderate growth potential in the automotive components sector. The company's low beta (0.264) suggests relative insulation from market volatility, appealing to risk-averse investors. Financial metrics show reasonable profitability (¥13.2 billion net income) and solid liquidity (¥85.8 billion cash), though capital expenditures (¥20.4 billion) indicate ongoing investment needs. The dividend yield appears sustainable at ¥68 per share. Key risks include exposure to cyclical auto demand, pressure from electrification trends reducing demand for traditional engine components, and dependence on Japanese automakers. The company's development of hydrogen-related products could provide future growth avenues as the industry evolves.
Aisan Industry occupies a niche position as a specialized supplier of fuel delivery and emission control systems, particularly strong in the Japanese domestic market where it benefits from long-standing relationships with local automakers. The company's competitive advantage lies in its precision manufacturing capabilities for critical engine components and its early development of hydrogen fuel system technologies. However, it faces intensifying competition from larger global parts suppliers with greater scale and R&D budgets. Aisan's relatively small size (¥337 billion revenue) limits its ability to compete on price against multinational competitors, forcing it to compete on quality and technical specialization. The company's focus on both traditional combustion engine parts and alternative fuel systems provides some diversification, but its future positioning will depend on successfully transitioning its product mix toward electrification and hydrogen technologies. Working capital management appears efficient (¥28.2 billion operating cash flow), but debt levels (¥56.2 billion) warrant monitoring given industry margin pressures.