DAI-ICHI CUTTER KOGYO K.K. (1716) Stock Price

Daiichi Cutter Kogyo is a company specializing in cutting and drilling work for various types of pavement and concrete structures such as roads and bridges, as well as building maintenance services including water supply and drainage systems and cleaning for apartment complexes and office buildings. The company provides high-precision cutting and drilling services primarily using the diamond method with industrial diamonds and the water jet method using water pressure.

Its main clients are general contractors, road construction companies, and equipment suppliers in the private sector, with work primarily conducted on a subcontracting basis. While the company's revenue is largely driven by public works projects, it also maintains stable sales from maintenance projects at chemical plants and power plants.

The business operates on two pillars: cutting and drilling work, and building maintenance. The former serves civil engineering applications (bridges, ports, dams), architectural work (demolition, seismic reinforcement, renovation), urban civil engineering (railways, water supply and sewage systems, waste facilities), road and airport construction, and production equipment maintenance. The company has positioned group companies by region to establish construction capabilities nationwide, and adapts its methods to site conditions, including work in special environments and fire-free construction techniques.

The company aims to maintain its position as the industry leader and achieve stable growth over the long term. Specifically, it plans to strengthen quality, safety, and process management alongside research and development, while differentiating itself through improved construction techniques to enhance market competitiveness and secure a stable revenue base. In response to fluctuating order environments, the company is strategically pursuing projects in transportation infrastructure such as highways and railways—sectors less vulnerable to economic cycles—as well as industrial infrastructure including chemical plants and power generation facilities.

Key investment areas include strengthening technical capabilities in cutting and drilling operations and expanding the building maintenance business into new regions. The company is investing in research and development, visualizing skilled techniques, and improving workforce training efficiency. Through capital expenditure, it is enhancing the competitive advantage of existing operations. Additionally, the company actively employs low-noise and dust-reducing methods such as diamond-blade cutting and water-pressure techniques, strengthening competitiveness in both public and private markets through environmental stewardship.

For new market development, the company plans to intensify proposals in growth sectors such as energy-related and underwater construction projects, while actively expanding investment in western Japan to broaden its business scope. Based on preventive maintenance and value-added new technologies, the company is exploring new business opportunities and strengthening its construction capacity through workforce expansion and cooperative company networks to secure stable orders and revenue. For building maintenance, the strategy is to acquire new customers through regional expansion and increased staffing.

Regarding technological innovation, the company is implementing systems to digitize and share expertise from experienced workers, and advancing productivity improvements by combining research and development with digital transformation (DX). Additionally, following past compliance violations, the company is strengthening compliance and governance through measures such as establishing a subsidiary oversight division and appointing an external head of management to review internal controls and prevent recurrence. Through these initiatives, the company aims to enhance competitiveness across three dimensions: technology, organization, and governance.