NAKANIPPON CASTING CO.,LTD (6439) Stock Price

Chubu-Nihon Casting is a diversified business company with casting operations as its core business, supplemented by real estate leasing and power generation and sales. The company manufactures metal components through its casting operations and seeks to stabilize earnings through leasing and power generation activities.

The company's primary customers are manufacturers in machinery and construction sectors, with casting product sales comprising the majority of revenues. Additionally, the company diversifies earnings through steady rental income from real estate leasing and revenue from selling generated electricity.

The business consists of three segments: casting, real estate leasing, and power generation and sales. The casting segment handles manufacturing and processing in-house to supply components to clients. The leasing segment generates rental income from factory land and business buildings, while the power generation and sales segment sells electricity produced by its owned power generation facilities.

Over a three-year plan, the company aims to establish an integrated production system spanning from casting to machining. While positioning its casting business as the core operation, the company is pursuing business diversification through real estate leasing and power generation and sales to stabilize performance. Given the challenging operating environment marked by fluctuating domestic and international demand and persistently high raw material and energy costs, the company has prioritized transforming its corporate structure to secure steady profits rather than setting short-term revenue growth targets.

As priority investment areas, the company is allocating resources to expand its machining division and strengthen equipment maintenance. This approach aims to increase line utilization rates and establish integrated end-to-end machining capabilities as a key competitive differentiator. Additionally, the company is strengthening quality assurance systems and implementing quality improvement activities through unified efforts between production floors and staff, while enhancing communication with suppliers to rebuild trust. The goal is to transition from a pure casting manufacturer to a comprehensive parts supplier.

For new market development and business expansion, the company is strengthening sales activities coordinated with manufacturing. By advancing information sharing across casting, machining, and inspection processes, the company plans to reduce lead times and ensure stable supply, thereby enhancing its ability to propose solutions to new customers and applications. The company is also focusing on early stabilization of its Thailand project at overseas operations, while continuing to use real estate leasing and power generation businesses to mitigate revenue fluctuations.

Regarding technological innovation, the company is advancing human resource development and capital investment in parallel. Alongside improving on-site technical skills and ensuring rigorous quality control, the company is investing in machining and inspection equipment and refining process management through manufacturing data sharing. Furthermore, the company is strengthening internal controls including compliance, risk management, and information security to enhance corporate value from both technological and management perspectives.