KLASS Corporation【JP:6233】Stock Price

KLASS is a manufacturer that develops, sells equipment, and provides related services across diverse fields including interior construction equipment, tatami mat manufacturing systems, industrial machinery, and solar power generation. The company focuses on automatic wallpaper adhesive applicators, computer-controlled tatami manufacturing systems, and "Goolip," a cloud platform for the construction industry, while also developing food processing equipment and secondary battery manufacturing systems.

The company serves a wide range of customers including interior construction contractors, tatami shops, home improvement retailers, construction companies, fitness clubs, and restaurant chains, generating revenue from both residential and commercial sectors as well as industrial applications. Revenue composition breaks down as follows: Professional segment approximately 70.6%, Industry approximately 12.8%, Consumer approximately 7.8%, and New Industry approximately 8.8%. Revenue sources include equipment sales, construction and maintenance services, and solar power generation income.

Operations are divided into four business segments—Professional, Consumer, Industry, and New Industry—with diversified product portfolios. Specifically, the Professional segment handles interior equipment, materials, tatami manufacturing systems, and cloud services; the Consumer segment manages specialty tatami, vibration-damping flooring materials, and solar power sales and generation; the Industry segment produces secondary battery manufacturing equipment and kitchen dispensers; and the New Industry segment develops automation systems through ROSECC.

KLASS places enhancing corporate value at the center of its growth strategy, with a clear focus on improving ROE through better profit margins and asset turnover. Current results show ROE at 5.8%, comprised of a profit margin of 1.8%, asset turnover of 1.0x, and financial leverage of 3.3x. Since the Professional segment accounts for approximately 70.6% of sales, the company aims first to establish a stable revenue base by maintaining competitiveness in its core existing markets and exploring adjacent market opportunities.

Key investment areas focus on development capabilities and leveraging intangible assets. Specifically, the company is advancing improvements in equipment usability and service enhancements through IT. For example, it is developing models of its flagship automatic wallpaper adhesive applicator with features designed for ease of use by women, elderly users, and foreigners. In the tatami business, it is pursuing structural reform proposals to attract competitors' customers, while investing in online sales of materials and consumables and promotional activities through social media. The company also completed a new production building and assembly facility in fiscal 2022 to increase production capacity, and has invested in organizational strengthening through establishing a human resources department and appointing external directors.

For new market development and business expansion, KLASS is pursuing a "2.4th industry model" combining hardware with software and services. The Solutions & Network segment is expanding its customer base through expanded cloud services and promotional activities for printers and original content, with plans to broaden its product and service offerings starting in October 2024. Additionally, by combining subsidiary ROSECC's robot control and waterjet technologies with its own core technologies, the company is strengthening proposals to new customer segments including automotive, housing equipment, major restaurant chains, and secondary battery-related industries, aiming to expand orders through synergies.

In technology innovation, KLASS is strengthening product development for IoT and robotics by establishing engineer training programs and a flexible research and development structure. Under the principle of "be imitated, but never imitate," the company aims to create unique products. It is executing competitive strengthening measures across both technology and management, including enhanced development environments, rigorous cost management through monthly cost review meetings, and promotion of quality and environmental management based on ISO 9001/14001.