NIPPON GAS CO.,LTD. (8174) Stock Price

Nippon Gas operates primarily in the sales of gas (LP gas and city gas) and electricity. Specifically, the company supplies LP gas for household, commercial, industrial, and automotive use, as well as community gas. LP gas transportation is handled by Nippon Gas Transport and Maintenance.

Nippon Gas also sells gas appliances, residential equipment, solar power generation systems, and storage batteries. In addition, the company provides LP gas supply facility construction, renovation work, and maintenance services for gas heat pump air conditioning (GHP) systems. Nippon Gas Construction handles some of these construction projects.

Furthermore, Nippon Gas provides a platform to support companies from other industries entering the city gas and electricity retail business. The company develops data integration systems for LP gas operation optimization, automatic meter reading systems, safety and equipment ordering systems, and promotes co-creation with other operators.

In the electricity business, the company primarily sells residential power. Its subsidiary Energy Uchuu partners with the Tokyo Electric Power Group to procure electricity. As energy solutions, the company is advancing the adoption of solar power generation systems, storage battery systems, and V2H (Vehicle to Home) technology.

In the city gas business, the company sells city gas for household, commercial, and industrial use. Energy Uchuu handles city gas supply and pipeline maintenance, while Nippon Gas Construction performs city gas pipeline construction. The company also handles city gas appliance sales and gas facility construction work.

Nippon Gas aims for sustainable growth, with a management philosophy centered on contributing to local communities and respecting human resources. The company is advancing a growth strategy that responds to changes in the energy industry and aligns with the global trend toward a decarbonized society.

From an energy security perspective, Nippon Gas prioritizes securing its supply chain. While addressing challenges posed by Japan's aging and declining population and global warming, the company pursues operational efficiency. In particular, it is consolidating the LP gas industry and driving efficiency improvements to establish industry leadership.

Nippon Gas is scaling up co-creation and strengthening collaboration with other industries and competitors. Through partnerships with the Tokyo Electric Power Group and IT venture companies, the company aims to provide new energy services and expand its contribution to local communities.

In its three-year plan from 2024 to 2026, Nippon Gas targets record-high profits and improved capital efficiency. While carefully forecasting gas and electricity sales volumes, the company aims to drive profit growth in city gas and energy space businesses while maintaining a 22% ROE target.

In capital policy, the company prioritizes increasing ROE and net profit, while improving ROIC and optimizing leverage. By controlling asset size and delivering shareholder returns at high levels, Nippon Gas aims for significant ROE improvement over the three-year plan period.

Nippon Gas pursues a capital policy that balances growth investment and shareholder returns. By optimizing the equity ratio and increasing the total payout ratio, the company enhances shareholder value. This approach enables sustainable growth and strong profitability.