CONSEC CORPORATIONJP:9895Stock Price

Market cap
¥2.4B
P/E ratio
22.9x
Consec manufactures and sells cutting tools like core drills and diamond blades, while also providing specialized construction services and equipment.

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Business Overview

Consec Co., Ltd. operates multiple business segments. Its primary business is the "Cutting Tools Division," which manufactures and sells drilling and cutting equipment including core drills, wall cutters, hand cutters, wire saws, and plunge cutters. The company also handles diamond cutting consumables such as diamond core bits, diamond blades, and diamond wire.

The "Specialized Construction Division" undertakes anchor work, diamond drilling and cutting work, wire saw work, dowel work, waterproofing work, grinding work, and smoke prevention work. These projects are carried out in collaboration with domestic and overseas subsidiaries.

The "Construction and Consumer Products Division" provides construction machinery and tools including compressors, hoists, chain blocks, grinders, and punchers. The company also sells construction materials such as concrete anchors, bolts and nuts, screws, safety shoes, and protective eyewear.

The "Factory Equipment Division" manufactures automatic control panels, distribution panels, fabricated steel structures, and precision sheet metal products. These products are provided through domestic subsidiaries.

Additionally, Consec previously operated a "Long-term Care Division," but has since withdrawn from this business by selling all shares of Sunlife Co., Ltd., a related domestic subsidiary. As a result, this division is no longer included in consolidated operations.

Management Policy

Consec Corporation operates under its corporate philosophy of "highest credibility," "highest technology," and "highest integrity," aiming for social contribution and sustainable growth. Through the development of new products and technologies, the company prioritizes legal compliance and stable profit generation, with a fundamental policy of sharing success with shareholders, business partners, and employees.

The company has formulated its "Medium-Term Management Plan 2029" to strengthen its management foundation with the goal of becoming a 100-year company. It aims to enhance its ability to respond to social and customer needs by reviewing its organizational structure in line with market demands and pursuing new business areas, while promoting business expansion and strategic focus.

The company views the repair and maintenance market centered on public works as a growth market and will strengthen competitiveness by expanding its order base in specialized construction services. Additionally, it will contribute to a sustainable society and strengthen its management foundation through sustainability-focused management, human capital investment, research and development, and capital expenditure.

Under the slogan "Challenge 2029 ~ Creating New Value," the company targets revenue of 11.6 billion yen, an operating profit margin of 4.2%, and ROE of 4.5% by fiscal year 2029. Non-financial targets include a 46% reduction in CO₂ emissions, female management ratio of 10% or higher, experienced hire ratio of 50% or higher, and paid leave utilization rate of 80% or higher.

In the challenging operating environment of the construction industry, Consec is working to strengthen competitiveness in each business segment and build growth foundations. In its cutting tools business, the company is advancing product renewal in existing markets and strengthening marketing in new markets by leveraging its technology, customer base, and locations.

In its specialized construction services business, the company will strengthen order capacity by increasing construction sales personnel and implementing M&A to enhance its ability to secure orders for public infrastructure repair and maintenance projects. In its construction and consumer products business, it aims to improve profitability through enhanced sales efficiency.

In its factory equipment-related business, the company will stabilize earnings through diversified order portfolios and expand new customer bases in both its steel fabrication and electrical divisions. As a financial strategy, the company aims to strengthen its management foundation through growth investments and pursue stable dividends with shareholder returns in mind.