Nex Group

Basic Information

Stock Code
6634
Industry
Electrical Equipment
Category Detail
Information & Communication Equipment
Prefecture
Iwate Prefecture
Establishment Year
April 1984
Listing Year
June 2007
Official Website
https://ncxxgroup.co.jp/
TSE Information
TSE Information
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Yahoo! Finance
Other Companies
Nisshinbo Holdings, Kitanihon Spinning, Defcon, Sakusa, OKI, Nakayo, Aiphone, San Electronics, TB Group, Yokoo, ICOM, Allied Telesis Holdings, Japan Avionics

Overview

Established in 1984, Nex Group is an electrical equipment manufacturer based in Iwate Prefecture that specializes in communication equipment development and diversifies into areas such as M2M, AI devices, and ICT agriculture.

Current Situation

Nex Group recorded consolidated net sales of approximately 2.13 billion yen for the fiscal year ending November 2024. Its main business is the development of communication terminals and data communication products, with strengthened applications in the M2M field. In recent years, it has launched edge computer products for AI and focused on ICT agriculture business. It is advancing subsidiary acquisitions and business reorganizations, maintaining a diverse lineup of IT services and products. It is also collaborating with competitors to advance communication technologies for market superiority. It sustains development of 5G-compatible products and low-wiring communication technologies while promoting environmental load reduction activities from a sustainability perspective. Challenges include financial strain from underperforming 5G equipment, emphasizing the need for efficient allocation of management resources and expansion in growth areas. Looking ahead, it envisions a medium- to long-term strategy driven by advancements in IoT and AI technologies and expansion of ICT agriculture business.

Trivia

Interesting Facts

  • First in the industry to launch a 128kbps card for Willcom data communication terminals.
  • Sells mushroom cultivation management kits bundled with the fairy tale 'Yellow Tomato'.
  • Headquartered in Hanamaki City, Iwate Prefecture, while maintaining head office functions in Minato-ku, Tokyo.
  • Develops diverse communication equipment as a fabless company.
  • Succeeded in manufacturing one of the world's smallest M2M communication modules.
  • Contributing to welfare society through joint nursing care robot development.
  • Early entry into cryptocurrency mining business.
  • Diversified business through capital and business alliance after joining FisCo Group.
  • Has experience of recording losses in consolidated settlements for over 10 years.
  • Continuously enhancing functionality of mobile Wi-Fi routers.
  • Independently develops terminals for various communication standards, with some outsourced production.
  • Strategically acquires and divests multiple subsidiaries to adjust business structure.
  • Selected for Iwate Prefecture's agriculture-commerce-industry collaboration support project, contributing to the region.
  • Recognized for supplying multiple products to domestic and international telecom operators.
  • Listed on JASDAQ before transitioning to Tokyo Stock Exchange Standard.

Hidden Connections

  • Advances collaboration with financial IT business through capital alliance with FisCo Group.
  • Collaborates with Vision on nursing care robot development to integrate welfare technologies.
  • Leverages local industry-academia-government collaboration in agriculture ICT business to promote technological innovation.
  • Strengthens ties with cryptocurrency market through mining business expansion.
  • Acquired KSP Co., Ltd. to bolster trading business for restaurants and factories.
  • Holds subsidiaries across diverse industries like Skeb and ITAL-J JAPAN for business diversification.
  • Implements regionally focused strategy backed by support for Tohoku/Iwate local industries.
  • Strengthens synergies among group companies following transition to holding company structure.

Future Outlook

Growth Drivers

  • Increased demand for communication equipment from 5G and IoT technology advancements
  • Expansion of agriculture ICT market and smart agriculture needs
  • New product expansion through integration of AI technologies into edge devices
  • Risk diversification effects from diverse business portfolio
  • Efficient development leveraging fabless manufacturing model
  • Network upgrade demands from domestic and international telecom carriers
  • Sustainable business development with regional focus
  • Growth in cryptocurrency-related technologies and market trends
  • Growth in nursing care robot market and rising social needs
  • New business creation through group company collaborations
  • Enhanced investment appeal accompanying ESG rating improvements
  • Adaptation to international standardization of advanced communication technologies

Strategic Goals

  • Achieve top domestic market share in communication technology field
  • Grow into a major domestic player in agriculture ICT business
  • Expand overseas market penetration for AI edge computer products
  • Achieve sustainable product development and environmental load reduction
  • Aim for group-wide net sales exceeding 10 billion yen
  • Establish global supply chain with fabless model
  • Provide innovative products in nursing care robot field
  • Stabilize revenue from cryptocurrency-related business
  • Build sustainable economic ecosystem in collaboration with local communities
  • Continuously strengthen corporate governance and ESG evaluations

Business Segments

Communication Equipment Manufacturing and Sales

Overview
Handles design, development, and sales of finished communication equipment.
Competitiveness
Versatile communication method compatibility through technological strength and fabless operations
Customers
  • Telecom carriers
  • IT companies
  • Industrial equipment manufacturers
  • Local governments
  • Logistics companies
Products
  • 5G routers
  • M2M communication terminals
  • Edge AI devices
  • Optical communication equipment
  • PHS/3G terminals

Agriculture ICT Solutions

Overview
Supports efficiency in agricultural production management using ICT technologies.
Competitiveness
Regionally rooted business development in mushroom cultivation and specialty product development
Customers
  • Agricultural cooperatives
  • Agricultural corporations
  • Local governments
  • Research institutions
Products
  • Cultivation management systems
  • Environmental measurement devices
  • IoT sensors
  • Data analysis software

IT System Development and Software

Overview
Provides IT systems and services tailored to customer needs.
Competitiveness
Diverse business expertise and flexible development structure
Customers
  • Manufacturing industry
  • Logistics industry
  • Medical and nursing care facilities
  • General companies
Products
  • Business system development
  • Cloud services
  • Software development
  • Operation and maintenance services

Cryptocurrency-Related Business

Overview
Provides equipment and related technologies for cryptocurrency mining.
Competitiveness
Application of latest technologies through group company collaboration
Customers
  • Cryptocurrency miners
  • Investment funds
  • Research institutions
Products
  • Mining equipment
  • Related software
  • Operation support

Competitive Advantage

Strengths

  • Advanced wireless communication technology development capabilities
  • Diverse product lineup and business deployments
  • Efficient management through fabless structure
  • Regional focus with headquarters in Iwate Prefecture
  • Abundant patents and technological synergies
  • Collaboration system with FisCo Group
  • Advanced product development in AI and IoT fields
  • Diversified business portfolio
  • Possession of global communication-compatible products
  • New entry into agriculture ICT field
  • Product development strength through internal and external collaborations
  • Capability to serve diverse customer segments
  • Strong development team and management
  • Expertise in M2M equipment market
  • Promotion of sustainability initiatives

Competitive Advantages

  • Secures market competitiveness with latest technologies like 5G-compatible communication modems
  • Diversifies customer touchpoints with broad range of communication-related products
  • Pioneering deployments in niche fields like ICT agriculture
  • Rapid and flexible production response via fabless model
  • Capital and technological support system under FisCo
  • Addresses social challenges through joint nursing care robot development
  • Maintains nationwide sales channels and multi-brand deployments
  • Builds vertical integration through group company collaborations
  • Market-leading position in mining business
  • Responds to diverse customer needs with products supporting various communication methods
  • Continuously implements strategic reorganizations through business transfers and acquisitions
  • Provides integrated hardware and software technologies
  • Strengthens regional ties through cooperation with local companies
  • Excellent balance of specialized technology and sales capabilities
  • Implements management strategies considering sustainability

Threats

  • Revenue deterioration due to weak 5G-related product market
  • Intensifying competition with major communication equipment manufacturers
  • Rapid technological changes in global markets
  • Risk of product obsolescence from communication standard changes
  • Delays in responding to evolving diverse customer needs
  • Challenges in talent acquisition and management resource constraints
  • Funding burdens from delayed new business monetization
  • Production instability due to semiconductor shortages
  • Declining profit margins from intensified price competition
  • Increased compliance costs from regulatory and safety standard changes
  • Shrinking domestic market and challenges in global expansion
  • Heightened volatility in cryptocurrency market

Innovations

2022: Commercialization of Edge AI Computer AIX-01NX

Overview
Developed and began market launch of edge-compatible AI computer.
Impact
Contributes to on-site AI processing capabilities and opens new markets.

2023: Expansion of Agriculture ICT 'NCXX FARM'

Overview
Expanded agriculture ICT solutions such as mushroom cultivation management systems.
Impact
Contributes to agricultural efficiency and support for young farmers.

2024: Strengthened Development of 5G-Compatible Communication Equipment

Overview
Refreshed product lines for 5G modems and routers.
Impact
Improves communication speeds and customer satisfaction through market launches.

2021: Joint Research on Power Line Carrier Communication Technology

Overview
Advanced applications for industrial equipment using low-wiring communication technology.
Impact
Introduces communication innovations to product lineup.

2020: Launch of Mining Business

Overview
Expanded into manufacturing and operation support for cryptocurrency mining equipment.
Impact
Successfully established new revenue sources and accumulated technologies.

2024: Advancement of Joint Nursing Care Robot Development

Overview
Collaborating with Vision Co., Ltd. to develop nursing care support robots.
Impact
Contributes to strengthening responses to aging society needs.

Sustainability

  • Promotion of low-power communication equipment development
  • Environmental conservation and regional revitalization through local agriculture support
  • Waste reduction and utilization of recycled materials
  • Business efficiency improvement and CO2 emission reduction through ICT utilization
  • Disaster support activities in collaboration with local communities
  • Creating diverse and inclusive workplace environments
  • Promotion of sustainable resource utilization
  • Cooperation with consolidated subsidiaries for environmental load reduction
  • Implementation of internal environmental awareness activities
  • Strengthening safety management systems
  • Continuous expansion of social contribution activities
  • Initiatives to improve ESG ratings