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Japan Aviation Electronics Industry, Ltd.

6807.TMEDIUM

Connectors / Charging Infrastructure · Weight: 4%· Data as of 2026-05-14

Investment Thesis

Confirmed Honda automotive OEM connector supplier with established supply relationships across Honda motorcycle and automotive platforms. CHAdeMO/CCS charging connector leader — KW series (150–200A, 750Vdc) deployed in charging station infrastructure Japan and globally. BMS signal connectors (MY05 1,000V rated, MX77, MX84B) designed specifically for EV/PHEV battery pack monitoring. Kyocera alliance (Oct 2025: NEC transferred 33% stake to Kyocera) removes conglomerate overhang and targets ¥17B cost/revenue synergy by FY2028 via network overlap. Defense aerospace segment (JGSDF/JASDF-qualified avionics) provides non-cyclical base as Japan raises defense budget to 2% of GDP. PB 1.19x vs Hirose Electric's ~2.5–3x — recovery optionality underpriced.

Risk

ROE 5.1% structurally below 8% FY2028 target — execution risk if EV automotive recovery stalls. EV slowdown in Europe explicitly flagged in FY2025 medium-term plan as headwind. Honda Mobile Power Pack/Emobi battery-swap pack connector not publicly confirmed — Honda MPP link is INFERRED. CHAdeMO standard losing global share to CCS/NACS in non-Japan markets; JAE has added KW11 CCS product but volume unconfirmed. Op profit fell 48% H1 FY2025 before partial recovery.

Monitoring Trigger

FY2026 ROE recovery toward 6%+. Kyocera synergy announcements (distribution wins, Asia automotive OEM new contracts). CHAdeMO V4 or CCS Japan deployment volumes. Honda EV platform BMS connector design-win announcement upgrades conviction to HIGH.

Key Dates

2026-08earningsQ1 FY2027 earnings — first read on Kyocera synergy realization + FY2026 ROE recovery trajectory

2027-03monitoringMid-term plan FY2028 ROE 8% target checkpoint — if not on track, thesis weakens

2028-03catalystFY2028 target: ROE 8%, revenue ¥260B, Kyocera ¥17B synergy — thesis validation date

Update History

2026-05-14exploreNEW

View report →

Added via Honda e-motorcycle supply chain gap-fill explore (TS signal score 4). Confirmed Honda OEM + CHAdeMO/CCS KW charging connectors + BMS connectors. Kyocera alliance catalyst. PB 1.19x recovery play vs Hirose premium.

Key Metrics

13.7

null

Fwd PE

1.19

P/B

5.1%

ROE

7.1%

Op Margin

~60%

D/E

2.5%

Div Yield

thin (¥63B capex over 3yr)

FCF

¥161B

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Connectors + Interface Solutions (merged FY2026)	~¥135B (~60%)	~60%	Automotive, EV charging (KW series), BMS connectors, mobile, industrial. Being restructured into unified segment in new mid-term plan.
Aerospace / Defense	~¥35–45B (~15–20%)	~17%	Avionics connectors and systems (JGSDF, JASDF qualified). Growing with Japan defense budget increase to GDP 2%.
Industrial / Infrastructure	~¥45–55B (~20–25%)	~22%	Industrial connectors, infrastructure. Recovery mode.

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	Honda (automotive + motorcycle)	Automotive connectors (MX series); confirmed on Honda GL1800 motorcycle platform	Honda Part 070MZ-MCAA300 uses JAE MX23A series. Established Honda OEM supplier relationship spanning motorcycles and automotive platforms.[source](2026-05)
confirmed	EV charging station operators (Japan, global)	KW series CHAdeMO/CCS connectors (KW1C 150A, KW07C 200A, KW11 CCS Type-1)	JAE makes CHAdeMO-compliant charging connectors deployed in charging stations globally. KW11 adds CCS Type-1 extending beyond CHAdeMO.[source](2024-01)
confirmed	EV/PHEV battery pack makers	MY05 1,000V BMS connector, MX84B PHEV/EV pack connector, MX77 compact BMS ECU connector	JAE's BMS e-mobility product line explicitly targets EV/PHEV battery pack signal monitoring. MY05 rated 1,000V for high-voltage BMS monitoring.[source](2024-06)
inferred	Honda Mobile Power Pack / Emobi ecosystem	Swap station connectors or MPP BMS signal interface	Honda MPP US launch confirmed May 2026. JAE confirmed Honda OEM + BMS connector maker — MPP connector supplier is plausible but not publicly confirmed.[source](2026-05)

Primary IR Documentation

Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).

IR landingJapan Aviation Electronics (JAE) IR landing (English)↗

Cites: Primary IR portal

https://www.jae.com/en/ir/

IR libraryJAE Financial Report library (English)↗

Cites: Earnings PDF archive

https://www.jae.com/en/ir/library/report-en/

Press releaseJAE BMS / e-Mobility Connectors (automotive OEM)↗

Cites: Automotive/e-mobility connector product line — Honda OEM supply

https://www.jae.com/en/bms_e-mobility/

Sources & References

↗JAE EV/PHEV Battery Connectorshttps://www.jae.com/en/connector-special/ev_phev_batterysystem ↗JAE BMS e-Mobilityhttps://www.jae.com/en/bms_e-mobility/↗KW Series EV Charging Connectorshttps://www.jae.com/en/connector-special/ev_charging_kw/↗MY05 1,000V BMS Connectorhttps://www.jae.com/en/connector-special/my05_high_volt_1a/↗NEC→Kyocera Stake Transferhttps://www.nec.com/en/press/202510/global_20251030_01.html ↗Kyocera-JAE Alliancehttps://global.kyocera.com/newsroom/news/2025/001133.html ↗Honda MPP US Launchhttps://electrek.co/2026/05/10/honda-is-bringing-mobile-power-pack-e-battery-swap-tech-to-the-us/

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.