Aichi Tokei Denki

Basic Information

Stock Code: 7723
Industry: Precision Instruments
Category Detail: Commercial & Industrial Machinery
Prefecture: Aichi Prefecture
Establishment Year: June 1949
Listing Year: December 1949
Official Website: https://www.aichitokei.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Kyowa Nissey, Rigaku Holdings, Nakano Refrigeration, KVK, Anritsu, Yokogawa Electric, Azbil, Horiba, Hioki, JEOL, Shimadzu, Topcon, Riken Keiki

Overview

Aichi Tokei Denki is a precision instruments manufacturer established in 1949, one of Japan's leading companies with strengths in measurement technologies such as water and gas meters.

Current Situation

Aichi Tokei Denki recorded net sales of approximately 41.5 billion yen in the fiscal year ended March 2022, establishing a stable business foundation. It benefits from strong public sector demand in its core water and gas meter segments, providing highly reliable measurement equipment. Through technological innovation, it refines precision sensor technologies and maintains competitiveness in the measurement and analysis equipment market. Responding to diverse customer needs domestically and internationally, it operates multiple factories centered in Aichi Prefecture. Aiming for a sustainable society, it works on reducing environmental impact and developing energy-efficient products. It has strengthened its business base through absorption mergers of joint ventures and group enhancements. In recent years, it has focused on developing new products like smart meters using IoT technology. Moving forward, it aims to expand its domestic market share and explore new markets leveraging its advanced technological strengths.

Trivia

Interesting Facts

Traces its roots to a long-established clock manufacturer founded in 1893.
Applies clock manufacturing technology to develop high-precision measurement instruments.
Has a history of involvement in design and manufacture of military aircraft before the war.
Limited production of mechanical watches in 2013 after 20 years.
Acquired naming rights to Atsuta Atsuta Shrine Park Baseball Stadium, naming it 'Atsuta Aichi Tokei 120 Stadium.'
Stable corporate structure with public sector demand accounting for a large portion of sales.
Major shareholders include major companies like Nippon Life Insurance.
Its independently developed highly durable meters receive high evaluations domestically and internationally.
Owns numerous subsidiaries and engages in wide-ranging business as a group.
Serves customers across diverse industries and is active widely in the measurement field.
Has production bases in multiple regions.
IP technology acquisitions etc. as technological strengths.
Top market share in meters used in public works.
Long-accumulated technology as the foundation for product development.
Regularly invests in developing new technologies.

Hidden Connections

Technology from its former clock business is utilized in current high-precision gear technology.
Related companies include Aika Industrial and Aichi Machine Industry spun off from it.
Mino Monta is a major shareholder with deep ties.
Actively involved in supporting local economy and culture in Nagoya City.
Absorbed and merged joint subsidiary with Ricoh Elemex to expand business.
Deeply connected to Japan's infrastructure through supply of measurement instruments to public agencies.
Numerous joint research projects with local governments etc. on smart meter-related technology development.
Emphasizes technical training as a collective of engineers united by employees.

Future Outlook

Growth Drivers

Expansion of smart meter market
Ongoing increase in public sector demand
Enhanced utilization of IoT and AI technologies
Increased demand for energy-saving products due to stricter environmental regulations
Expansion of overseas infrastructure investments
Replacement demand from local governments
Strengthened collaboration with group companies
Advancements in high-precision sensing technology
Development of new applications in digital society
Expansion of maintenance services
Product improvements for achieving decarbonized society
Contribution to safe and secure social infrastructure

Strategic Goals

Achieve 40% domestic market share
50% increase in smart meter sales
Over 70% ratio of green products
Achieve 20% overseas sales ratio
30% improvement in production efficiency through AI introduction
30% reduction in environmental impact
Strengthened coexistence with local communities
Continued investment in new technology development
Establishment of sustainable growth model
Maintain customer satisfaction over 90%

Business Segments

Water and Gas Meters for Public Sector

Overview

Meets measurement equipment needs in the public sector by supplying high-reliability products.

Competitiveness

High-precision and highly durable meter technology

Customers

Local Governments
Public Corporations
Water and Sewerage Operators
City Gas Companies
Government Agencies

Products

Water Meter S Series
Smart Gas Meter
Sensor System
Instrumentation Control Unit
Remote Monitoring System

Measuring and Analytical Instruments for Private Sector

Overview

Product deployment tailored to diverse measurement needs in manufacturing and analysis fields.

Competitiveness

Custom response capabilities across a wide range of fields

Customers

Manufacturing Industry
Energy Industry
Chemical Plants
Construction Industry
Environmental Measurement Companies
Research Institutions

Products

Temperature Sensors
Flow Meters
Pressure Gauges
Analytical Devices
Custom Measurement Systems

Products for Overseas Markets

Overview

Develops and sells products tailored to overseas needs with an established sales system.

Competitiveness

Technological capabilities compliant with international standards

Customers

Overseas Water and Sewerage Operators
Energy-Related Companies
Export Trading Companies
Overseas Government Agencies

Products

Overseas Standard-Compliant Water Meters
Export Smart Meters
Overseas Instrumentation Equipment

Maintenance and Service Division

Overview

Provides after-sales services to support long-term product operation.

Competitiveness

Prompt and specialized technical response

Customers

Municipal Administrators
Meter Installation Contractors
Construction Contractors

Products

Meter Repair Services
Technical Support
Spare Parts Provision

Competitive Advantage

Strengths

High-precision measurement technology
Strong market share in water and gas meters
Stable order base from public sector demand
Long years of technology accumulation and brand trust
Strengthened production system with multiple sites
Custom response capabilities and technical support
Experienced personnel as a precision instruments manufacturer
Active technology investment and product development
Strong customer relationships
Solid financial foundation
Development of environmentally friendly products
Utilization of group synergies
Stable orders and supply capacity
対応 to new technologies like smart meters
High brand recognition in the domestic market

Competitive Advantages

Meter technology excelling in energy efficiency and durability
Stable revenue from long-term contracts with public customers
Continuous application of latest sensor technology
Rapid supply system with multiple business locations
Flexible response to market needs with custom products
Product development strength through collaboration with group companies
Ensuring reliability through high-quality management
Promotion of smart city-compatible product development
Established maintenance network
Specialized strengths in public sector demand
Continuous investment in R&D
Superior environmental resistance in equipment design
Wide product lineup
Comprehensive customer support system
Capital strength appropriate for industry scale

Threats

Intensifying competition from overseas manufacturers
Risks from fluctuations in public project budgets
Impact of regulatory or standard changes
Shortening product life cycles
Impact from emergence of alternative technologies
Production and supply risks from natural disasters
Uncertain factors in global markets
Challenges in securing talent
Fluctuations in raw material prices
Cybersecurity risks
Delays in responding to rapid technological innovation

Innovations

2023: Smart Water Meter Development

Overview: Developed next-generation smart water meters utilizing IoT technology.
Impact: Realizes remote monitoring and efficient usage management.

2022: High-Precision Gas Meter Improvement

Overview: Improved gas meter accuracy with new sensors.
Impact: Significantly reduced measurement errors and improved customer satisfaction.

2021: Low-Environmental-Impact Measurement Equipment Development

Overview: New product lineup promoting energy-saving design and reduced environmental impact.
Impact: Reduced product environmental impact by 30% and strengthened market competitiveness.

2024: Remote Monitoring System Expansion

Overview: Nationwide rollout of IoT-based remote monitoring infrastructure underway.
Impact: Enables maintenance cost reduction and prompt failure response.

2023: AI-Based Meter Anomaly Detection Technology Development

Overview: AI-utilizing anomaly detection technology to streamline maintenance operations.
Impact: Improved early fault detection rate by 20%.

Sustainability

Reducing environmental impact through improved energy efficiency
Strengthening product recycling systems
Promoting carbon neutrality within the company
Promoting waste reduction and reuse
Establishing green procurement standards
Environmental protection activities in collaboration with local communities
Introduction of environmental management systems
Development of resource-saving manufacturing processes
Activities to raise environmental awareness among employees
Formulation of guidelines for sustainable product design
Improving energy efficiency through smart infrastructure
CO2 reduction through utilization of digital technologies