ENVIPRO HOLDINGS Inc. (5698) Stock Price

Envipro Holdings is a holding company that collects and processes metal scrap and industrial waste, and produces and sells recycled resources domestically and internationally. The company gathers waste from factories and demolition sites, processes it into recycled materials such as iron, non-ferrous metals, and plastics. It also produces and exports black mass containing rare metals from lithium-ion battery waste, and provides import/export and logistics services.

Its main customers are steelmakers with electric arc furnaces or blast furnaces, non-ferrous trading companies and smelters, paper and plastic manufacturers, local governments, and various factories. Revenue is primarily generated from the sale of recycled resources. The company's revenue streams include collection and processing fees, margins from resource trading, commissions from import/export and logistics services, and contract income from environmental consulting and welfare services.

The business is divided into three main segments: "Resource Circulation Business," "Global Trading Business," and "Lithium-Ion Battery Recycling Business," with additional operations in environmental management consulting and disability welfare services. The Resource Circulation Business processes and sells iron scrap, non-ferrous metals such as copper and aluminum, waste paper, plastics, and rubber. The Global Trading Business provides distribution functions and trade/logistics services to supply these materials to domestic and international markets. The Lithium Battery Business is characterized by recovering rare metals from battery waste and selling them to non-ferrous trading companies and smelters.

The company is positioning "leading the circular economy" at the center of its growth strategy. It aims to enhance corporate value by transforming its business from waste collection and intermediate processing to the production and sale of recycled resources. In conjunction with a review of its medium-term management plan, the company is discontinuing its previous five-year plan ending in June 2029. Going forward, it will adopt ROE as a new quantitative target and publish annual profit plans and financial metrics each year to ensure steady progress. The company views the 2050 carbon neutrality goal as a business opportunity and aims to expand its market by supplying low-carbon recycled materials.

Priority investment areas include metal recycling, as well as the recovery of rare metals, rare earth elements, and precious metals, and polymer recycled material businesses targeting rubber and plastics. The company differentiates itself by leveraging its strengths: advanced physical sorting equipment and process expertise, specialized recycling technology, proposal capabilities, a nationwide network of collection points and distribution channels including overseas operations, and integrated services from disassembly to resource recovery. Through these capabilities, the company aims to ensure clear traceability of material quality and origin, and provide stable supply to customers including steel manufacturers, non-ferrous traders, material makers, and municipalities.

In new market development, the company is prioritizing the recovery of gold and silver from incineration ash, advanced utilization of urban mines, black mass production through lithium-ion battery recycling driven by electric vehicle adoption, and supply of polymer recycled materials from waste plastics and rubber. To expand operations, the company plans to integrate four group companies handling metal resource circulation and two companies handling polymer resource circulation, optimizing business processes and enhancing production, sales, and management efficiency through functional collaboration. Through these efforts, the company aims to form new markets in coordination with environmental ministry initiatives, while strengthening domestic and international distribution functions, trade, and logistics services.

Regarding technological innovation, the company is advancing research and development and capital investment in both physical sorting technology and chemical recycling processes. To establish closed-loop systems for rare metal recovery from lithium batteries and advanced polymer recycling, the company is implementing demonstration plants, installing sorting equipment, and advancing process design while strengthening quality control and safety. Additionally, the company is building its management foundation through talent acquisition and improved compensation, next-generation leader development, and governance strengthening including external directors, aiming to create a structure that links technology investment to business growth.