Awel <7670> is a manufacturing and trading company that is a leading player in industrial paint sales, mainly in the coating-related business, handling semiconductors and software for automobiles in its electronics-related business on a global scale.

The business segments are divided into coating-related business and electronics-related business, with coating-related business accounting for 72.1% and electronics-related business for 27.9% of the 64,329 million yen revenue in the 2023 fiscal year ending in March. Domestic sales account for 86.6% of revenue, while overseas sales represent 13.4%. Within the coating-related business, industrial paint and architectural coatings are continuously mass-produced on the production line and are widely used in various industries, with the company focusing on industrial paint as its main product. In addition to paints and surface treatment agents, the company also provides chemicals, supplies, painting, and measuring equipment. The company sources products from major domestic paint manufacturers such as Japan Paint HD <4612>, Kansai Paint <4613>, and others through exclusive dealership agreements, supplying a wide range of products to various industrial sectors. Approximately 50% of sales in the coating-related business come from the automotive industry. In the electronics-related business, the company supplies Hall IC (sensors) and LED lighting to major automobile component manufacturers.

For the first half of the fiscal year ending in March 2025, the cumulative revenue increased by 2.9% to 34,241 million yen compared to the same period last year, with operating profit reaching 403 million yen, a 7.4% increase. In the coating-related business, although domestic automotive production numbers decreased compared to the previous period, robust production from other clients and an increase in orders for painting equipment and painting/measuring instruments contributed positively. On the other hand, the electronics-related business experienced a decline in segment profit due to a decrease in domestic automotive production numbers and the impact of a weak yen. The company expects a 1.3% increase in total revenue to 72,000 million yen and a 23.6% increase in operating profit to 1,150 million yen compared to the previous period. The annual dividend for this fiscal year is expected to increase by 3 yen to 35 yen, resulting in a dividend yield exceeding 4%.

With a history of 80 years, the company has established relationships with approximately 2,000 suppliers and 3,000 customers based on trust and reliability. Able to provide value in a wide range of processes for manufacturing companies, the company has expanded its business beyond the traditional trading framework. Drawing on its long-standing technical expertise in industries with stringent requirements, the company can offer optimal materials and methods to customers in various environments and conditions. Recent initiatives include the implementation of OLDAS (Painting Site Management System) in the coating business to achieve advanced and automated painting, the application of riblet formation technology in aircraft, and support for the development of flying cars through coating technology. In the electronics-related business, the company is creating themes for the car-mounted market (CASE).

The company has also disclosed its medium-term management plan, targeting a revenue of 77,000 million yen and an operating profit of 1,800 million yen by the fiscal year ending in March 2027. Continuing the automation and advanced coating in industrial paint through the implementation of OLDAS, the company aims to create and expand its global business. In its global expansion efforts, the company has already established local subsidiaries in India and enhanced sales bases in Mexico and Indonesia. Additionally, targeting a PBR exceeding 1, the company aims for an ROE of over 8% by the fiscal year ending in March 2027. The company plans to invest continuously in overseas operations, technology development, growth businesses including M&A, as well as reduce policy shareholdings while implementing stable and continuous dividends. Despite operating in an environment where manufacturing industry digitization is lagging, the company engages in painting subcontracting within customer manufacturing lines, and the performance expansion through various growth strategies is promising. Being engaged in unique business areas without direct competitors, keep an eye on future developments towards achieving the medium-term management plan.