Alps Alpine Co., Ltd.
6770.TMEDIUMConnected Vehicle / BMS Angle Sensors / HMI Switches · Weight: 4%· Data as of 2026-05-17
Investment Thesis
Vietnam factory (Alps Electric Vietnam Co., Ltd.) provides local content advantage for Honda's UC3 e-motorcycle production hub in Vietnam (spring 2026 launch). Alps supplies BLE/GNSS/5G connectivity modules enabling Honda's connected motorcycle roadmap and current-sensing angle sensors (GCBC series) used in BLDC motor position feedback. Honda Tier-1 relationship traceable to 1981 joint development of world's first car navigation system. Automotive connectivity module revenue growing against thin-margin infotainment headwind; EV/FCF 10.74x implies undemanding valuation for the components business. FY2026 Q1 highest-ever quarterly sales led by components segment.
Risk
Net margin only 2.6% with Alpine infotainment segment under Software-Defined Vehicle disruption pressure. Motorcycle-specific module revenue <5% of ¥1T total (concept stock flag — overridden: thesis is Vietnam local-content + whole-Honda relationship, not isolated motorcycle module). Connected-motorcycle could adopt Chinese modules if Honda India/Vietnam deprioritizes Japanese content cost control. ROE data inconsistent (-8.72% vs positive NI) — data quality flag for next evolve.
Monitoring Trigger
If Alpine infotainment segment OP turns positive in Q2 FY2027 (structural reform complete), add to position. If Alps Alpine loses Vietnam Honda connector program to Chinese rival in any EDINET filing, exit. Watch Honda Vietnam UC3 sales data H2 2026.
Key Dates
Update History
NEW ADDITION: Connected vehicle modules + Vietnam local content angle. Honda e-motorcycle cycle_rotation signal (score 4) drove exploration. Alps Electric Vietnam factory in direct Honda UC3 supply chain geography. Concept-stock flag noted and overridden (whole-Honda relationship, not motorcycle-module-only).
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Components (Alps) | ~¥600B est | ~60% | Switches, sensors (current/angle), wireless modules (BLE/5G/GNSS), IoT Smart Network Modules. Q1 FY2026 highest-ever quarterly sales driven by mobile + automotive electrification. |
| Mobility (Alpine) | ~¥400B est | ~40% | Automotive infotainment, car navigation systems. Under structural reform due to SDV disruption pressure on traditional head units. |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| probable | Honda Motor | IoT/BLE connectivity modules + HMI switches for connected motorcycle system | Alps Alpine has long Honda Tier-1 relationship (1981 joint nav system). Vietnam factory (Alps Electric Vietnam Co., Ltd.) provides local content for Honda Vietnam UC3 e-scooter production. Alps' IoT Smart Network Modules and automotive BLE modules naturally extend to connected motorcycle IoT applications.[source](2025-01) |
| probable | Honda Motor (Vietnam) | Vietnam local content — electronic components for UC3 e-motorcycle | Alps Electric Vietnam Co., Ltd. in production. Honda Vietnam is assembling UC3 from spring 2026. Japanese-origin component suppliers with local Vietnam plants have inherent advantage for Honda quality standards and local-content regulations.[source](2024-06) |
| confirmed | Multiple automotive OEMs | 5G/GNSS/mmWave radar automotive modules | Alps Alpine demonstrated 5G in-vehicle communication devices and automotive high-precision GNSS at JSAE Automotive Engineering Exposition 2025. Production-grade modules for connected vehicle market (CASE trend).[source](2025-05) |
Sources & References
Peer Comparison
| Company | PE | Fwd PE | ROE | Op Margin | FCF |
|---|---|---|---|---|---|
| Murata Manufacturing | ~49.7x TTM (impairment-distorted; fwd PE ~37x on FY2026 guidance) | ~37x (on FY2026 OP +34.8% guidance) | 7.25% | 15.4% | +¥239B |
| TDK Corp | 26.51 | 23.71 | 11.4% | 12.4% | +¥169B |
| Fuji Electric | 20.59 | 17.97 | 8.2% | 8.7% | +¥51B |
| Sumitomo Metal Mining | 28.63 | 19.76 | 5.0% | 5.0% | +¥87B |
| AGC Inc | 17.89 | 14.7 | 4.7% | 6.2% | +¥65B |
| Kureha Corp | N/A | 19 | -6.7% | -11.1% | ~est. negative (capex ongoing) |
| Asahi Kasei | 13.4 | 12.9 | 7.7% | 7.5% | +¥134B |
| Mitsubishi Electric | 32.85 | 30.6 | 10.1% | 9.1% | +¥317B |
| Nidec Corp | 6.3% | 5.0% | +¥174B | ||
| Hirose Electric | 23.3 | 23.5 | 9.0% | 20.3% | ~+¥36B |
| Sumitomo Electric | 25.5 | 29.7 | 10.2% | 8.2% | +¥102B (est.) |
| Resonac Holdings | 83.53 | ~31.6x | 5.72% | 4.3% | +¥24B |
| Rohm Co. | Loss (NI -¥158.4B SiC impairment) | ~125x (near-breakeven NI; FY2028 target >20% OP margin) | Loss | +1.6% Q3 FY2026 (recovering from -9.0% year ago) | -¥44B |
| Shindengen Electric Manufacturing Co., Ltd. | 30.8 | N/A | N/A | N/A | N/A |
| GS Yuasa Corporation | 11.04 | N/A | 9.59% | N/A | N/A |
| Mitsuba Corporation | 5.5 | N/A | N/A | N/A | N/A |
| Daido Steel Co., Ltd. | ~11x | N/A | N/A | N/A | +est. |
| Nippon Seiki Co., Ltd. | 12.45 | 12.05 | N/A | N/A | +confirmed |
| Musashi Seimitsu Industry Co., Ltd. | 31.6 | N/A | N/A | 11.1% | N/A |
| Stanley Electric Co., Ltd. | 13.8 | 4.5% | 6.3% | N/A | |
| Honda Motor Co., Ltd. | 7.77 | 5.82% | 7.0% | N/A | |
| Mitsui High-tec, Inc. | 15.3 | 13 | 11.8% | 5.8% | -¥12B |
| MinebeaMitsumi Inc. | 18.7 | 13.75 | 9.1% | 6.2% | -¥21B |
| Ryobi Limited | ~8x | N/A | 4.4% | 3.2% | N/A |
| Tokai Rika Co., Ltd. | ~8x | N/A | 10.9% | 5.9% | +est. ¥15-20B |
| Nippon Chemi-Con Corporation | 91 | 7 | 3.1% | 2.9% | ~0 (thin; ¥20B capex planned) |
| Japan Aviation Electronics Industry, Ltd. | 13.7 | 5.1% | 7.1% | thin (¥63B capex over 3yr) | |
| ARCHION Corporation | 11 | 11 | ~6% | ~2.0% | Negative on integration capex through FY2027 |
| Alps Alpine Co., Ltd. | 18.3 | N/A | N/A | 2.4% | N/A |
| Nichicon Corporation | 16.74 | N/A | N/A | 3.8% | N/A |
| Mikuni Corporation | 4.2 | N/A | N/A — confirm vs J-Quants | N/A — thin, est. 1-3% | N/A |
| T.RAD Co., Ltd. | N/A — confirm vs StockAnalysis | N/A | N/A — confirm vs J-Quants | N/A | N/A |
| Renesas Electronics Corporation | N/A (EPS negative — IDT amortization ¥370B/yr; operating profit positive) | N/A | ~10.5% (pre-impairment FY2025; currently impaired by amortization) | N/A — confirm vs J-Quants | N/A |
| Shin-Etsu Chemical Co., Ltd. | 24.79x TTM | 22.32x (pre-PVC recovery) | ~10.5-11.5% | ~24.7% (FY2026; compressed -14.4% from PVC weakness) | +¥739.4B (FY2025 — outstanding) |
| Sumitomo Bakelite Co., Ltd. | ~17.2x TTM | ~12.0x (FY2025 guidance ¥25.5B NI) | 6.54% | 10.3% (FY2025 guidance) | +¥46B est (EV/FCF 8.73x, EV ~¥400B) |
| NSK Ltd | 32.12 | 22.70 | 1.8% | 2.96% | +¥44B (est.) |
| Toray Industries Inc | 25.97 | 16.62 | 3.19% | 5.0% | N/A |
| SMC Corporation | 29.0 | 27.24 | 7.9% | N/A | +¥200B (est., high net income + minimal capex) |
| Mitsui Kinzoku Company, Limited | ~29.7x TTM / ~22.3x forward (StockAnalysis/Simply Wall St, May 2026) | ~22.3x | ~18.4% | ~15.6% (implied: OP ¥117B / revenue ¥750B FY2025E) | N/A (verify J-Quants; positive expected given OP margins) |
| UBE Corporation | ~8.4x TTM (cheaply valued) | N/A | ~5.1% (WARNING: below TSE 8% target — ROE guardrail triggered. Override: capex-heavy transition period; electrolyte growth pipeline.) | ~4.7% (thin — monitor for recovery to 7%+) | N/A (capex-heavy with Louisiana plant — verify against J-Quants when available) |
| Taiyo Yuden Co., Ltd. | 20.79x TTM (StockAnalysis, May 2026) | 27.52x (FY2026 guidance: +8% revenue, +50% OP income) | 3.92% | ~3.3% TTM (trough); guided to ~4.8–5% FY2026 on +50% OP recovery | N/A |
| F.C.C. Co., Ltd. | 9.5x | N/A | N/A | N/A | N/A |
| Nittoku Co., Ltd. | 14.12x | 15.45x | N/A | N/A | N/A |
| NOK Corporation | 15.5x | N/A | ~3-5% | 4.9% | N/A |
| Yokowo Co., Ltd. | N/A | N/A | N/A | 5.1% | N/A |
| Yamaha Motor Co., Ltd. | 7.5 | N/A | 1.4% | 5.0% | +¥52.5B |
| Hioki E.E. Corporation | 27.8x | N/A | N/A | N/A | N/A |
| Tsubakimoto Chain Co. | ~11.2x | N/A | 8.75% | ~8.1% | est. +¥20-25B |
| Central Glass Co., Ltd. | 17.7x | ~14x (26% EPS growth forecast; analyst consensus) | ~8.2% (est: NI ¥8.36B / book value ¥101B) | ~3.2% (compressed; was ~6-9% pre-Chinese LiPF6 price war) | N/A (J-Quants not available; cross-validate before entry) |
| CKD Corporation | ~36x | ~20x (analyst forecast; likely conservative given 35.7% recent earnings growth) | 9.19% | 12.4% | N/A |
| Panasonic Holdings Corporation | 32.4x | ~15x (FY2027 NI expected +2.2x from ¥75B base) | 4.77% (FY2026 trough; guided higher FY2027) | ~2.9% (FY2026: OP ¥236.4B / Revenue ¥8,049B; compressed by restructuring charges) | N/A (Panasonic Energy capex-heavy; cross-validate before entry) |
| UACJ Corporation | 15.46x | ~22x (FY2027 NI guided ¥28B from ¥38.8B; NI decline; caution) | 11.21% | ~5.4% (Q3 FY2026 9M operating profit margin improving from prior year) | N/A (capital-intensive aluminum rolling; verify before entry) |
| Kanto Denka Kogyo Co., Ltd. | N/A (loss year FY2026 due to fire). Forward PE ~32x on FY2027 guided EPS ¥118.3 | ~32x (FY2027 guided NI ¥6.8B / shares 57.46M = ¥118.3 EPS; price ¥3,775) | -4.74% (FY2026 fire loss). FY2027 guided ROE ~10% (¥6.8B NI / ¥68B book) | ~8.7% guided FY2027 (¥10B OP / ¥95B revenue). Depressed in FY2026 (fire losses) | Negative FY2026 (fire year). Recovery expected FY2027. |