NIPPON CHUZO K. K. (5609) Stock Price

Nippon Casting's primary business involves casting-related operations. The company manufactures cast steel and cast iron products, which are primarily handled by Nippon Casting itself. The company also produces steel structure products and landscape-related products, with involvement from Dat Corporation as well.

Additionally, Nippon Casting provides processed products and other offerings. These products are primarily handled by Nippon Casting. JFE Steel Corporation is an important sales customer and raw material supplier for Nippon Casting.

Nippon Casting plans to conduct an absorption merger of Dat Corporation, effective July 1, 2025. Through this merger, Nippon Casting will become the surviving company in the absorption merger, while Dat Corporation will become the absorbed and dissolved company. This merger is expected to improve operational efficiency and expand the business.

Nippon Casting's management philosophy is to leverage its technical expertise to provide high value and services to society. All employees are committed to maintaining pride in their work and continuing their efforts to achieve sustainable growth. The company has set management targets of operating profit margin (ROS) of 10% or higher and return on equity (ROE) of 10% or higher.

The company is strengthening its entry into semiconductor manufacturing equipment and renewable energy sectors to establish its position in growing markets. It is also advancing digital transformation (DX) to improve productivity. Specifically, the company is expanding the use of welding robots and 3D printers, and automating work analysis through AI.

In its engineering business, the company is focusing on expanding sales of steel bearings and rubber bearings. In particular, it is developing earthquake-resistant reinforcement structures and expanding sales of high-performance high-damping rubber bearings (HDRrex) to develop solution-based business. This strengthens the company's ability to meet customer needs.

To improve operational efficiency, the company is upgrading its sales systems and production management systems. As part of its SDGs initiatives, it is promoting talent acquisition and development as well as green transformation. The company is also working to improve ROE as it pursues enhanced capital efficiency.

Additionally, the company is pursuing operational efficiency through the absorption and merger of Dat Corporation. This merger is expected to expand and streamline operations and is positioned as part of the company's growth strategy.