NAGAOKA INTERNATIONAL CORPORATION【JP:6239】Stock Price

Nagaoka is a company that designs, manufactures, installs, sells, and maintains water treatment equipment, intake screens, and internal equipment for energy sector applications. The company specializes in environmentally friendly products, including a chemical-free high-speed biological treatment system (Chemless) and an energy-efficient air diffusion treatment system (Air Sys).

The company's primary customers include municipalities, water and sewerage operators, industrial clients such as oil refineries and petrochemical plants, and construction companies. In addition to product sales, plant design, construction, and regular maintenance services form key revenue pillars. Energy-related screens and internals are particularly important for certifications and long-term supply contracts, which generate stable orders.

The business consists of two main segments: water-related and energy-related operations. The water-related segment offers intake screens, Chemless, Air Sys, and High Sys for seawater intake applications. The energy-related segment manufactures screens and internal equipment that regulate flow within reactors, supplying plants that require high precision and durability. A key strength is the company's integrated approach, coordinating domestic and international production facilities to provide comprehensive services from manufacturing through installation and maintenance.

The company is pursuing sustainable growth through business restructuring, centered on its medium-term management plan "FLIGHT PLAN: TRANSFORM 2027" (fiscal year ending June 2025 through June 2027). For the final year ending June 2027, the company has set numerical targets of 16,000 million yen in revenue and 1,600 million yen in net profit attributable to parent company shareholders. For the year ending June 2026, following a performance review, targets have been set at 10,000 million yen in revenue and 1,100 million yen in net profit. To achieve these goals, the company is conducting strategic investments for next-generation growth alongside strengthening existing operations, aiming to stabilize and expand its earnings base.

Priority investment areas are water-related and energy-related businesses. In the water sector, the company is expanding its proposal and service scope beyond conventional groundwater extraction and water treatment to include upstream and downstream processes, as well as plant operations and maintenance. Competitive advantages include environmentally low-impact products such as the chemical-free high-speed biological treatment system "Chemless," the energy-efficient "Air Sys," and "High Sys" for seawater intake, along with stable orders leveraging long-term supply capabilities and certifications for precision screens and internals. Through an integrated business model covering design, manufacturing, installation, and maintenance, the company is strengthening one-stop proposals to municipalities and plant operators.

For new market development and business expansion, the company is clearly pursuing overseas market acceleration and business scale expansion through M&A. Specifically, priorities include exploring entry into wastewater and drainage treatment sectors beyond municipal water supply, expanding proposals in seawater intake and industrial water treatment, and capturing equipment upgrade demand for existing plants in the energy sector rather than relying on new construction. Additionally, the company will optimize manufacturing bases and review market portfolios to address geopolitical risks and cost challenges, while acquiring technology and sales channels through M&A to accelerate growth.

Regarding technological innovation, the company is strengthening research and development of products and processes through three strategic investments for next-generation growth: growth investment, business investment, and new investment. Specific development themes include energy-efficient and environmentally conscious plant solutions, enhanced precision and extended lifespan of screens and internals, and manufacturing process efficiency. Internally, the company is advancing human resources reforms, promoting young talent and new graduate and mid-career hiring, and implementing qualification support and technical succession programs to strengthen its technical workforce. Through these investments and human resources initiatives, the company aims to build competitive advantage by enhancing product strength and supply capabilities.