The supply assurance plan for domestic drones has been certified, with a subsidy cap of ¥1.5 billion and a stated target future production capacity of 58,000 units annually. On 7 September, the company also announced plans to establish its first mass-production plant on the premises of Howa Machinery.
The government has certified Prodrone’s supply assurance plan to strengthen the supply base for unmanned aircraft, and disclosed that the subsidy cap is ¥1.5 billion, with a target future supply capacity of 58,000 units annually. This suggests a process through which the policy framework could be linked to a practical mass-production structure. The disclosed figures are targets and planned levels only, and do not immediately indicate orders or actual revenue.
On 7 September, Prodrone announced that it would establish its first mass-production plant on Howa Machinery’s premises and conduct a third-party allotment capital increase with Howa Machinery as the subscriber. This could advance the development of its supply structure. At the same time, mass production requires not only production facilities but also the recruitment and training of personnel and the establishment of quality-control systems. Additional information is needed on the actual operating schedule, investment amount and stabilization of the mass-production process.
This article examines investment opportunities related to domestic drones by breaking them down into the areas of component supply, plant development, operations, maintenance and data utilization, in addition to airframe manufacturers. Prodrone’s announcement demonstrates the importance of having supply-base development, funding and personnel procurement in place as a package, but it does not establish the level of revenue or earnings. The status of listed companies including JTEKT, ACSL, Blue Innovation and Liberaware, as well as Howa Machinery, will also be analyzed as related companies.
The formation of the domestic drone market depends not only on airframe sales, but also on contract terms and the status of certification as products move from prototypes to mass production, operations and maintenance. Because a gap may arise between the stage of certification and actual business discussions or orders, the contract terms, accounting treatment and cash flow trends of each company must be assessed carefully. Against this backdrop, the focus will be on the extent to which the current positions and future prospects of the 5 companies are aligned with both policy and market developments.