Nippon Chemi-Con Corporation
6997.TLOWScore: 33.7Passive Components / Aluminum Electrolytic Capacitor · Weight: 3%· Data as of 2026-05-14
Investment Thesis
World #1 aluminum electrolytic capacitor maker with upstream vertical integration into aluminum electrode foil — the performance-critical raw material it also supplies to competitors (structural upstream moat). DC-bus aluminum electrolytics are non-substitutable in EV motor inverters and OBCs at 300–600V; MLCCs cannot replace them. AEC-Q200 automotive-qualified LVA/KVB/KVA series explicitly targets EV OBC and inverter applications. Trough valuation at 0.62x PB with FY2026 recovery guided at +19% revenue / +100% op income as automotive inventory destocking completes. Industry-first liquid-immersion-cooling AI server capacitor (Nov 2024) adds data center optionality.
Risk
Chronic capital inefficiency — 10yr average ROE deeply negative; D/E 125% limits balance sheet flexibility. No named EV OEM customer publicly confirmed — supply chain evidence is product-category PROBABLE, not contractual. Management mid-term plan pivots toward AI server opportunity rather than doubling EV bet. Chinese makers (Jianghai, CapXon) eroding commodity-tier pricing forcing margin compression. EU cartel fine €98M (2018) suggests past moat was partly anticompetitive rather than purely technical. Nichicon is a direct comparable with similar EV focus.
Monitoring Trigger
FY2026 results: op margin >5% confirms recovery trajectory; automotive segment order intake shows EV destocking complete. Any named EV OEM customer disclosure (Honda, Denso, Shindengen) upgrades conviction to MEDIUM. Watch if Chinese automotive-grade electrolytic volumes scale — would threaten NCC's premium-tier position.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Automotive (車載) | ¥50.7B (~41%) | ~41% | AEC-Q200 aluminum electrolytics for EV OBC, motor inverter DC bus, ADAS. Largest single segment. Weak FY2025 due to EV slowdown/destocking. |
| ICT / AI Servers | ¥34.8B (~28%) | ~28% | Server PSU capacitors, AI server power supply. Growing. Industry-first liquid-immersion-cooling capacitor launched Nov 2024. |
| Industrial Equipment | ¥33.6B (~27%) | ~27% | Industrial power supplies, motor drives. Slow recovery. |
| Aluminum Electrode Foil (upstream) | Embedded in above segments | N/A | World #1 in aluminum electrode foil — the key performance material in electrolytic capacitors. Supplied to competitors. Structural upstream moat. |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| probable | EV Motor Inverter OEMs (Honda, Denso, Shindengen ecosystem) | AEC-Q200 aluminum electrolytic capacitors (LVA/KVB series, 450V rated) for DC-bus voltage filtering | NCC explicitly markets LVA/KVB/KVA series for EV OBC and inverter DC-bus applications; claims 'worldwide No. 1 in automotive market'. No named OEM contracts disclosed. |
| confirmed | Nichicon, Rubycon, other capacitor makers | Aluminum electrode foil (upstream raw material) | NCC is world #1 in aluminum electrode foil and supplies to competitors — structural upstream vertical integration moat. |
| confirmed | AI hyperscalers / server PSU makers | Liquid-immersion-cooling compatible aluminum electrolytic capacitors | Industry-first product announced Nov 2024 for AI server thermal management environments. |
Primary IR Documentation
Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).
Cites: Primary IR portal
https://www.chemi-con.co.jp/en/company/ir/
Cites: Quarterly results PDF archive
https://www.chemi-con.co.jp/en/company/ir/library/result/
Cites: World #1 aluminum electrolytic capacitor leadership — AI server use case
https://www.chemi-con.co.jp/en/news/detail.php?id=release20241101
Cites: Hybrid aluminum capacitor product line for EV power electronics
https://www.chemi-con.co.jp/en/news/detail.php?id=releaseHXK20231027