NIKKEN KOGAKU CO., LTD. (9767) Stock Price

Nikken Kogaku operates primarily through two business segments. First, in the formwork rental business, the company leases steel formwork used in the manufacturing of wave-dissipating foundation blocks. This business plays an important role particularly in coastal and riverbank protection works.

Second, in the product sales business, the company sells revetment blocks, concrete secondary products, natural stone products, and civil engineering sheet products manufactured by partner factories. These products feature functions such as erosion prevention, scour prevention, and waterproofing, and are widely used in civil engineering projects.

Looking at Nikken Kogaku's revenue composition, the product sales business accounts for approximately 70% of total sales, while the formwork rental business accounts for approximately 30%. Through this structure, the company has established its position as an important material supplier in civil engineering projects.

Nichiken Engineering is committed to developing new technologies and construction methods to achieve disaster prevention against natural disasters and conservation of the natural environment. The company's mission is to contribute to the creation of a comfortable future society.

The company leverages its core technology in wave-dissipating foundation block construction methods to expand revenue through formwork rental services and product sales. By improving market share and efficiently managing fixed costs, the company is transforming its business structure to generate stable profits.

The formwork rental business is expected to see increased opportunities in the medium to long term, driven by growing societal demand for disaster prevention and mitigation. While competition is intensifying in overseas markets, expansion of port development demand in Asia is anticipated.

Nichiken Engineering regularly reviews the progress of its business plans and revises action plans as needed. This approach enables flexible business operations and allows the company to respond to changing business environments.

The company prioritizes the development of new businesses and products, strengthening its core business, and maintaining and reinforcing its network of partner companies. Through these efforts, the company aims to pursue sustainable growth with value-added business expansion.