Nakayo

Basic Information

Stock Code
6715
Industry
Electrical Equipment
Category Detail
Information & Communication Equipment
Prefecture
Gunma Prefecture
Establishment Year
May 1944
Listing Year
October 1974
Official Website
https://www.nyc.co.jp/
TSE Information
TSE Information
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Other Companies
Ai Holdings, Nisshinbo Holdings, Obex, Robutex, Toami, Yokota Seisakusho, Saxa, OKI, Aiphone, San Electronics, Daido Signal, Tokyo Cosmos Electric, Yokoo, Icom, Allied Telesis Holdings, Nippon Antenna, Japan Avionics, Nitchitsu, San-Life Holdings, Nanshin

Overview

Nakayo is a communications equipment manufacturer founded in 1944, serving as a mid-tier player in the electrical equipment industry with expertise in intercom systems and communication network equipment, renowned for its technical strength and diverse product lineup.

Current Situation

Nakayo recorded consolidated sales of approximately 17.2 billion yen for the fiscal year ended March 2024, but posted temporary operating and net losses. The company focuses on communications equipment, particularly excelling in durable and high-performance IP phones and private branch exchanges (PBX), maintaining its market share. Supported by its parent company Ai Holdings, it is strengthening product development with a focus on expanding network-related equipment such as routers and PHS modules. It is also developing energy-related equipment to reduce environmental impact. Moving forward, it plans to launch new communication technologies, IoT market products, and 5G-compatible items, aiming for mid- to long-term growth. Headquartered in a regional area, it leverages a nationwide sales network to build a solid revenue base. Ultimately, it seeks sustainable growth through stable network infrastructure supply and expansion of environmental technologies.

Trivia

Interesting Facts

  • Founded in 1944, began manufacturing communication equipment during wartime as a long-established company.
  • Key regional company as a communication equipment manufacturer headquartered in Maebashi, Gunma Prefecture.
  • Parent company Ai Holdings plans to acquire over 85% of shares in 2025.
  • Established unique position in Japan's mid-tier IP phone equipment market.
  • Historically holds high share in PBX and telephone switch development.
  • Early involvement in environmental and energy-related equipment development.
  • North Japan office in Noshiro, Akita Prefecture, strengthening regional presence.
  • Many products feature robust designs specialized for business use.
  • Advancing market diversification through internet-related terminal equipment.
  • Long-established listed company on the Tokyo Stock Exchange Standard Market since 1974.
  • Maintained stable sales even during COVID-19 due to steady communication demand.
  • Strength in localized customer support, backed by local SMEs.
  • Expanding product development and R&D investment with parent company support.
  • Active in technology development for routers and network equipment.
  • Supporting local employment through after-sales service for communication devices.

Hidden Connections

  • Ai Holdings is the parent company, aiming for industry share expansion through group collaboration.
  • Contributing to local industry revitalization in collaboration with Gunma Prefecture policies.
  • Strengthening technology supply to Tohoku region via Akita Noshiro office.
  • As a mid-tier player, capable of integrated services from manufacturing to maintenance of communication networks.
  • Environmental equipment products align with domestic energy efficiency initiatives.
  • Some communication components jointly developed through collaborations with other domestic companies.
  • Long PBX development experience forms the technical foundation for IP phones.
  • Collaborates with local SMEs, contributing to local economy and employment growth.

Future Outlook

Growth Drivers

  • Expansion of IP phone and VoIP markets
  • Spread of 5G and next-generation communication technologies
  • Increasing demand for environmental and energy-related products
  • Growing demand for IoT devices and network construction
  • Active infrastructure upgrade investments by SMEs
  • Rising security awareness driving related product demand
  • Promotion of network infrastructure in regional cities
  • Market development for 5G-compatible communication equipment
  • Capital strengthening through parent company management support
  • New business creation via regional collaborations

Strategic Goals

  • Establish top mid-tier status in communication equipment in Japan
  • Environmental and energy products to account for over 20% of sales
  • Expand market share in 5G and IoT communication equipment
  • Strengthen regional services and expand nationwide
  • Achieve product energy efficiency and environmental standards
  • Reach 30% sales from communication security products
  • Acquire new customer segments and enhance customization
  • Establish sustainable management structure
  • Improve competitiveness through employee technical and expertise enhancement
  • Promote domestic and international technology exchanges and industry-academia collaborations

Business Segments

Communication Infrastructure Systems

Overview
Provides communication infrastructure systems for various industries, supporting optimization of communication environments.
Competitiveness
Provision of highly reliable and customizable communication systems
Customers
  • Corporations
  • Government agencies
  • Educational institutions
  • Hospitals
  • Manufacturing
  • Trading companies
Products
  • Intercom systems
  • Private branch exchanges (PBX)
  • IP phone equipment
  • Network routers

Environmental and Energy-Related Equipment

Overview
Designs environmentally friendly energy equipment and supports operation management.
Competitiveness
Development capabilities in energy-saving technology and durable product lineup
Customers
  • Renewable energy operators
  • Local governments
  • Factories
  • Building management companies
Products
  • Solar monitoring systems
  • Energy-saving control devices

Communication Security Solutions

Overview
Provides security equipment and services to ensure communication safety.
Competitiveness
Advanced threat detection technology and proven stable operation
Customers
  • Financial institutions
  • Large corporations
  • Government offices
  • Data centers
Products
  • Firewalls
  • VPN gateways
  • Security management systems

IoT/Smart Devices

Overview
Develops IoT technology-based devices and network equipment to support business efficiency.
Competitiveness
High expandability and connection stability of products
Customers
  • Manufacturing
  • Logistics
  • Smart city operators
  • Local governments
Products
  • IoT gateways
  • IoT sensors

Custom Communication Systems

Overview
Provides optimal solutions through customization of communication equipment to customer requirements.
Competitiveness
Flexible development response and technical support system
Customers
  • Large corporations
  • Specific industries
  • Telecom carriers
Products
  • Custom intercom systems
  • Custom PBX
  • Communication peripherals

Network Construction and Maintenance

Overview
Supports communication network design, construction, and maintenance comprehensively.
Competitiveness
Rapid service response rooted in the local community
Customers
  • Small and medium enterprises
  • Schools
  • Medical institutions
Products
  • Network design
  • Construction services
  • Maintenance services

Wireless Communication Equipment

Overview
Provides sales and maintenance services for business wireless communication equipment.
Competitiveness
Superior durability product lineup
Customers
  • Manufacturing
  • Construction
  • Logistics
Products
  • Wireless transceivers
  • Wireless accessories

Communication Equipment Accessories

Overview
Offers a wide range of accessories necessary for communication equipment.
Competitiveness
High durability and reasonable pricing
Customers
  • Communication equipment retailers
  • Corporate users
Products
  • Phone handsets
  • Cable connectors

Universal Design Products

Overview
Focuses on design and sales of user-friendly telephones for all.
Competitiveness
High usability and safety
Customers
  • Elderly care facilities
  • Public facilities
  • Medical institutions
Products
  • Universal design telephones

Network Management Systems

Overview
Develops management systems supporting efficient operation of communication networks.
Competitiveness
User-friendly operability
Customers
  • Corporations
  • Government agencies
Products
  • Network management software

Business Phone Recording Systems

Overview
Provides high-quality voice recording and management functions.
Competitiveness
High reliability and security
Customers
  • Call centers
  • Financial institutions
  • Medical institutions
Products
  • Call recording systems

Communication Control Devices

Overview
Develops and sells control devices supporting call cost management.
Competitiveness
Proven track record in efficient cost reduction
Customers
  • Large corporations
  • Factories
  • Telecom carriers
Products
  • Outgoing call control units

Competitive Advantage

Strengths

  • Diverse product lineup of communication equipment
  • Technical expertise from years of industry experience
  • Nationwide sales and support network
  • Strong financial backing from parent company
  • Customization capabilities for products
  • High-quality after-sales service
  • Robust and reliable product design
  • Local customer support
  • Expertise in communication networks
  • Promotion of environmental product development

Competitive Advantages

  • Established position in mid-tier market for IP phones and PBX
  • Flexible product customization to meet wide customer needs
  • Management support system from parent Ai Holdings
  • High-quality, long-lasting product design
  • Diversified expansion into communication equipment and environmental energy products
  • Stable management backed by solid financial base
  • Rapid response system to customer sites
  • Continuous technology development and product improvements
  • Enhanced customer satisfaction through specialized after-sales service
  • Strong sales network for regional SMEs and local bases

Threats

  • Burden of responding to rapid communication technology innovations
  • Intensifying competition with major communication equipment manufacturers
  • Harsh price competition in global markets
  • Risk of product obsolescence due to communication standard changes
  • Manufacturing delays from semiconductor supply issues
  • Declining domestic market demand
  • Additional costs from strengthened environmental regulations
  • Sophistication of communication security threats
  • Increased competition from new entrants
  • Impact of natural disasters on production and logistics

Innovations

2023: Development of Next-Generation IP Phones

Overview
Developed and launched next-generation VoIP phones compatible with high-speed communications.
Impact
Achieved improved communication efficiency and customer satisfaction

2022: Launch of Environmentally Friendly Energy-Saving Control Devices

Overview
Successfully commercialized energy-saving control devices optimizing energy consumption.
Impact
Contributes to reducing customers' electricity costs and environmental impact

2021: Expansion of IoT Gateway Product Line

Overview
Newly developed IoT communication devices and began application across diverse industries.
Impact
Promotes opening of new markets and revenue growth

2024: Introduction of Enhanced Communication Security Products

Overview
Launched firewalls equipped with advanced threat detection technology.
Impact
Meeting corporate security needs and increasing orders

2020: Launch of Universal Design Telephones

Overview
Commercialized telephones with operability considerate of the elderly and disabled.
Impact
Improved social reputation and acquired new customer segments

2023: Initiation of 5G-Compatible Router Development

Overview
Began R&D on router products compatible with next-generation 5G standards.
Impact
Strengthens technical capabilities for future communication infrastructure

2022: Participation in Industry-Academia Collaboration Communication Technology Research Project

Overview
Conducted joint research on high-efficiency communication technology with universities.
Impact
Advances technology foundation strengthening and innovation creation

2021: Development of Cloud-Linked Communication Management System

Overview
Commercialized network management system utilizing cloud technology.
Impact
Realizes reduced operation costs and improved convenience

2020: Development of Communication Equipment for Smart Buildings

Overview
Developed communication equipment integrable with building management systems.
Impact
Contributes to expansion of smart city-related business

2024: Practical Implementation of 5G Network Quality Improvement Technology

Overview
Practicalized technology aimed at improving 5G communication quality.
Impact
Strengthens competitiveness through high-quality communication services

Sustainability

  • Promotion of energy-saving product design and usage
  • Strengthening recycling activities to reduce environmental impact
  • Thorough resource and energy-saving operations within the company
  • Improving environmental compatibility of energy-related products
  • Active participation in local eco-events
  • Establishment of compliance and adaptation systems for environmental laws
  • Promotion of production process improvements to reduce waste
  • Increasing products with eco-mark certification