(5075) Stock Price

Upcon operates a business that corrects concrete floor settlement, tilting, level differences, and voids using its proprietary "Upcon Method," which involves injecting urethane resin for rapid repairs. The company's strength lies in its ability to perform construction without demolishing existing floors. It provides maintenance and repair services for buildings such as factories, warehouses, commercial facilities, and residences, as well as social infrastructure including roads, ports, and airports.

The company's primary customers include private enterprises (factory, warehouse, and retail operators, as well as residential property owners) and public works projects commissioned by national and local governments. Revenue is based on repair construction contracts, and the company's reputation for short construction periods and minimal operational downtime leads to continuous project acquisition.

The business is divided into private and public sectors. The private sector provides a comprehensive range of services including factory floor settlement correction, residential repairs, and preliminary surveys. In the public sector, the company handles infrastructure projects such as the FRT method for agricultural irrigation tunnels and void and gap filling for roads, bridges, ports, and airports. Its distinguishing features include non-CFC urethane resin, compact construction equipment, and high-precision workmanship performed by in-house engineers.

The company aims to secure sustained growth by developing new business pillars and diversifying revenue streams. Prioritizing profitability, the company has designated "gross profit margin" and "operating profit margin" as key performance indicators, and is working to improve profit margins through cost reduction and operational efficiency. Specific initiatives include continued research and development investment, securing and developing human resources, and expanding sales channels through brand building via media and trade shows (promoting awareness of the Upcon construction method).

The company has positioned polyurethane resin technology development as a priority investment area. Led by the technical department, the company is advancing improvements to the Upcon method and the derivative FRT method, and plans to collaborate with material manufacturers to enhance the performance and safety of specialized polyurethane. As differentiation strategies, the company leverages its ability to install without demolishing existing floors, complete projects in short timeframes, and avoid operational shutdowns, as well as its strength in high-precision construction using compact machinery and in-house construction teams. The company is also investing in employee health management, establishing a president-led "health activity club" to support both operational stability and technical knowledge transfer.

For new market development, the company is clearly pursuing public infrastructure and overseas expansion. Specifically, the company plans to commercialize the FRT method in public works projects such as water tunnel cavity filling and airport ground consolidation, targeting projects using environmentally conscious materials such as non-CFC products. Overseas, the company is focusing on the Vietnamese market, planning to conduct sales activities from north to south through approximately two site visits per year and trade show participation. Upon license agreement expiration, the company will strengthen sales and construction operations under its own leadership, implementing concrete measures including market research in collaboration with JETRO, building local networks, and deploying sales personnel.

Technological innovation is central to the company's growth strategy. The company is accelerating technology commercialization through continuous research and development and field testing. Priority efforts include improving compact construction machinery, advancing polyurethane injection technology, and enhancing quality through joint development with material manufacturers, while expanding applicable areas through repeated demonstration tests. Simultaneously, the company is strengthening corporate governance and internal management systems, conducting regular reviews of risk management for infectious diseases and natural disasters, to build a framework where technology investments translate into stable revenue.