Chugai Ro Co.,Ltd.【JP:1964】Stock Price

Chugai Furnace Industries operates three main business segments. First, in the heat treatment business, the company designs, manufactures, installs, and sells heat treatment furnaces for automobiles, machinery, semiconductors, and chemical materials, as well as furnaces for batteries, substrates, catalysts, and magnetic materials. It also provides air purification equipment. This field requires particularly high-precision heat treatment technology.

Second, in the plant business, the company designs, manufactures, installs, and sells heating furnaces and heat treatment furnaces for steel and non-ferrous metals, metal strip process lines, painting lines, industrial burners, and energy-saving control equipment. Through these offerings, it supports improved energy efficiency and productivity.

Third, in the development business, the company conducts research and development related to decarbonization and designs, manufactures, installs, and sells precision coating and drying equipment, kilns, and environmental process equipment. It particularly focuses on developing technologies that reduce environmental impact and contributes to building a sustainable society.

As other operations, domestic and international subsidiaries provide industrial furnace sales and technical services in their respective regions. Chugai Plant provides technical services and personnel dispatch, while subsidiaries in Taiwan, China, Thailand, Indonesia, and Mexico handle local sales and maintenance. These operations strengthen the company's competitiveness in global markets.

Chugai Ro Industrial Co., Ltd. has adopted a growth strategy centered on thermal technology. The company is guided by the fundamental principle of responding to effective energy utilization and environmental conservation, and aims to contribute to societal development. Additionally, to meet the expectations of stakeholders including shareholders, business partners, and employees, the company places emphasis on establishing a stable corporate foundation.

Based on its medium-term management plan "Chugai Ro Break Through (CBT) 2022-2026" announced in 2022, Chugai Ro Industrial is advancing three key strategies. These include creating new markets centered on carbon neutrality, expanding sales and improving profitability through product refinement tailored to existing market needs, and building a workplace where employees find fulfillment.

As concrete measures, the company is strengthening investment in research and development by utilizing the "Thermal Technology Innovation Center," which was completed in November 2023. Additionally, to improve operational efficiency, the company aims to reduce working hours through the introduction of design support systems. Through these efforts, the company is working to establish itself as a leading enterprise contributing to carbon neutrality by 2050.

Furthermore, the company is strengthening corporate governance to enhance corporate value and reinforce its management foundation. The medium-term management plan sets targets of ROE of 10% or higher and a total shareholder return ratio of 50% or higher, aiming to expand business revenue. The company makes management decisions with awareness of capital costs and implements appropriate dividend policies and acquisition and retirement of treasury shares.