NIHON KENSHI CO.,LTD. (E01168) Stock Price

Nippon Kenshi is a specialized manufacturer engaged in the production and sale of abrasive cloth paper and other abrasive material products. The company's primary products are abrasive materials used in metal processing, woodworking, automotive manufacturing, and similar industries. It supplies essential industrial consumables for manufacturing processes. The group operates through the company as its core entity, along with two subsidiaries and one affiliated company.

The company's business serves manufacturing industries both domestically and internationally as its main customers, with demand from metal processing and automotive-related industries forming the primary revenue pillar. Since abrasive materials are consumables continuously consumed in manufacturing processes, the company has built a stable revenue base through consistent demand and repeat purchases.

The business is divided into two segments: domestic manufacturing and sales, and overseas manufacturing and sales. The domestic business is handled directly by the company. For overseas expansion, Kunshan Zhengri Abrasive Co., Ltd., a consolidated subsidiary in China, handles manufacturing and sales to expand operations in the Asian market. The company's other subsidiary, Nippon Kenshi Creative, is currently suspended from operations.

Nippon Kenshi aims to achieve sales of 12 billion yen by fiscal year 2030 under its medium-term management plan. As a leading company in the abrasive materials industry, the company is pursuing a dual strategy of improving profitability in existing businesses while pursuing new growth areas to solidify its market position. The company is particularly focused on expanding overseas operations, with plans to further strengthen its revenue base in overseas markets, which currently account for approximately 30% of total sales.

The core of the company's differentiation strategy lies in its long-established abrasive material manufacturing technology and product development capabilities tailored to customer needs. The company is making priority investments in developing application-specific abrasive materials for metal processing, woodworking, and automotive industries, with particular emphasis on expanding high-value-added products for precision machining applications that require high accuracy. The company is also investing in developing environmentally friendly products, differentiating itself from competitors by providing abrasive materials that contribute to sustainable manufacturing development.

In overseas market development, the company is accelerating business expansion in the Asia-Pacific region using Kunshan Zhengri Abrasive Co., Ltd., a consolidated subsidiary in China, as its base. The company is capitalizing on increased demand for abrasive materials driven by manufacturing industry growth in Southeast Asian countries, and is planning to strengthen local production capacity and expand its sales network. The company is also considering entry into India and Eastern European markets, aiming to diversify its growth foundation through global business expansion.

In technology innovation, the company is promoting manufacturing process efficiency improvements and advanced quality control through digital technology. The introduction of an IoT sensor-based production equipment monitoring system has improved manufacturing efficiency and reduced costs. The company is also developing a quality prediction system utilizing AI technology, building a technological foundation to support product manufacturing that reliably meets customer quality requirements.