KANEMATSU SUSTECH CORPORATION (E00621) Stock Price

Kanematsu Sustec is a construction-related company with ground improvement as its core business. The company specializes in reinforcing the ground that serves as the foundation for homes and buildings, and provides environmentally conscious ground improvement technology. Additionally, the company operates diversified businesses including wood preservation treatment, security equipment sales, and petroleum product sales.

The company's revenue structure is primarily composed of construction contracts and product sales targeting customers in the construction industry, such as homebuilders and general contractors. In the ground improvement business, the company builds a stable revenue base by providing not only construction work but also related services such as ground surveys and settlement correction. In the wood processing and security equipment businesses, the company has established an integrated system that includes both product sales and installation services.

The company is organized into four main business segments. The ground improvement business, its largest pillar, possesses multiple construction techniques including column-type improvement methods and steel pipe pile methods, and pursues nationwide expansion through three subsidiaries and one affiliated company. The wood processing business specializes in preservation and termite-prevention treatment, the security equipment business handles surveillance cameras and related equipment, and the petroleum products business conducts fuel sales including gasoline through a subsidiary.

Kanematsu Sustec has set targets of 19 billion yen in sales, 2.3 billion yen in operating profit, and ROE of 10% or higher for the fiscal year ending March 2025, the final year of its medium-term management plan. The company positions this period as a time to establish solid revenue foundations across its three core businesses while strengthening research and development and investment for future growth. Through capital-efficient management, the company is committed to returning profits to shareholders by increasing earnings and raising its dividend payout ratio.

In priority investment areas, the Geotech business is expanding market share in the residential sector and strengthening sales efforts in the non-residential sector. The wood processing business is focusing on sales expansion for public buildings and promoting wood utilization, while the security equipment business is developing services tailored to customer needs. The company aims to differentiate itself and enhance competitiveness by maintaining and expanding existing business rights across each division while pursuing the commercialization of new technologies.

In new market development, full-scale entry into the non-residential sector for ground improvement operations and strengthened capabilities in large-scale specialty wood-based building materials are key strategies. The security equipment business is utilizing a technology center opened in Tokyo to establish a system for providing more advanced technical services. The company is also actively considering and executing investments in fields closely related to its operations to enhance corporate value in the near term.

In technological innovation, the company is advancing the development of new ground improvement methods, effective utilization of accumulated ground data, and revenue generation through development and external sales of management systems. In wood preservation and termite protection treatments, the company is promoting the development of environmentally friendly methods and agents, and providing new solutions incorporating AI in surveillance cameras across each business segment. The company has clearly positioned sustainability at the center of its management strategy, pursuing both environmental conservation and corporate value enhancement.