NIPPON SEIKI CO.,LTD. (7287) Stock Price

Japan Precision Instruments operates multiple business segments and provides a diverse range of products and services. The main business segments include automotive components, consumer components, plastic compounds, and automobile sales.

In the automotive components business, the company manufactures and sells instruments for four-wheel vehicles, head-up displays, instruments for two-wheel vehicles, general-purpose instruments, various sensors, and high-density mounting circuit boards for EMS. These products are handled by Japan Precision Instruments and its affiliated companies NS Advantech and NS West.

In the consumer components business, the company provides operation panels for office automation and information equipment, as well as controllers for air conditioning and residential equipment. These products are primarily handled by Japan Precision Instruments and NS Advantech.

In the plastic compounds business, the company processes and sells plastic materials. This business is operated by NS Advantech and Nissei Kogyo塑料 (Nantong) Co., Ltd.

In the automobile sales business, the company provides new and used vehicle sales as well as services including vehicle inspections and maintenance. These services are provided by Honda Yonrin Sales Nagaoka and Niigata Mazda Automobile.

In other business areas, the company also handles freight transportation, software development and sales, and contract computing services. These services are provided by Japan Precision Instruments, Nissei Service, and NS Computer Service.

Nippon Seiki is rebuilding its unique management philosophy to achieve sustainable growth. The company has established its corporate purpose as "creating a world and future filled with peace of mind and inspiration," and aims to be an enterprise that creates interface value through technology. Its mission is to make the invisible visible and provide optimal products and services.

In its medium-term management plan announced in November 2023, the company has designated the three-year period from 2025 to 2027 as a "performance recovery phase." It targets a 1% annual improvement in operating profit, with final-year goals of 330 billion yen in revenue and 16.5 billion yen in operating profit. This strategy aims to restore performance and improve capital returns.

The company has identified three priority areas for growth strategy: strengthening the head-up display business, achieving profitability in European operations, and developing new customers and products. In particular, the head-up display business will leverage its number-one global market share to focus on developing new technologies and products to expand sales.

For European operations, the company will undertake business restructuring to improve profitability. Specific measures include adjusting selling prices to reflect raw material cost increases, improving costs for unprofitable product lines, and reorganizing design and development bases. These efforts will enhance profitability in Europe.

In new customer acquisition and product development, the company will focus on head-up displays incorporating 3D technology and developing affordable aftermarket products. Additionally, it will strengthen quality, cost, and delivery capabilities in the growing two-wheeled vehicle instrument market and reduce costs for products with LCD panel components.

Furthermore, through acquiring next-generation technologies and reforming the supply chain, the company aims to create new value. It will accelerate local production and consumption, optimize production layouts, and implement business process reforms to build an organizational structure resilient to change.