NIPPON STEEL NISSHIN CO., LTD. (E26712) Stock Price

Nippon Steel Nisshin Steel is a steel manufacturer whose core business is the manufacturing, processing, and sale of steel products. The company has particular strength in stainless steel production and offers a wide range of high-value-added products utilizing surface treatment technology. It operates as a subsidiary of Nippon Steel Corporation (formerly Nippon Steel & Sumitomo Metal Corporation) and conducts business in coordination with 67 group companies.

The company's customers are primarily manufacturers across diverse industries including automobiles, construction, home appliances, and industrial machinery. Its revenue structure is anchored in domestic manufacturing and sales, while local production and sales through overseas subsidiaries in the United States, China, Taiwan, and other regions form an important pillar, establishing a global supply system. Additionally, the company secures stable supplies of stainless steel raw materials through equity investments in raw material producers in South Africa and French New Caledonia.

Business segments are centered on steel product manufacturing and sales, with specialized subsidiaries handling manufacturing and processing in the fields of building materials, steel pipes, and stainless steel products. The company supplies materials to domestic subsidiaries such as Nippon Steel Nisshin Building Materials and Nippon Steel Pipe, which conduct product processing and sales in their respective specialized fields. Overseas, the company is expanding into European and South American markets through partnerships with Acerinox, a major Spanish stainless steel manufacturer.

Nippon Steel Nisshin Steel has set targets for the medium-term management plan through fiscal year 2020: consolidated operating profit of 400 billion yen or more, consolidated net income of 300 billion yen or more, and return on equity of 10.0% or above. The company aims to strengthen competitiveness and improve profitability by accelerating strategic alignment with its parent company, Nippon Steel & Sumitomo Metal Corporation (now Nippon Steel Corporation), while leveraging its distinctive strengths to deliver added value. The company targets a dividend payout ratio of approximately 30% and maintains a sound financial structure with an interest-bearing debt-to-equity ratio of approximately 0.5x.

The company's key strategy focuses on reviewing core product portfolios and capturing functional value premiums. It has introduced a "unit system" that shares strategy by product category—carbon steel, special steel, and stainless steel—to transition toward product lines combining functionality, future potential, and profitability. Through integrated product-specific strategies spanning from raw materials to secondary and tertiary processing, the company promotes high-value-added offerings and brand development to customers, shifting from traditional volume-driven growth to quality improvement.

For new market development, the company has established a "customer satisfaction pursuit strategy" and is deploying initiatives to amplify added value across the entire value chain, from development and manufacturing to sales and processing by group companies. In addition to strengthening secondary and tertiary processing domestically, the company is enhancing market development with core products overseas, aiming to improve profitability through the combined strength of the group. Under its management philosophy of "customer-first principles," the company promotes detailed development and sales activities tailored to customer needs across all divisions.

In technological innovation, the company is advancing "reconstruction of manufacturing foundations" through steady implementation of aging facility replacement investments, risk mitigation investments, and core product investments. It is strengthening cost competitiveness by leveraging coordination within the Nippon Steel & Sumitomo Metal Corporation group and maximizing synergies through deepened collaboration with the parent company across various upstream and downstream sectors. The company aims to establish long-term competitive advantage through business restructuring, including maximum utilization of existing blast furnaces and optimal production system development.