FURUKAWA CO.,LTD. (5715) Stock Price

Market cap
¥171.7B
P/E ratio
14x
Japanese manufacturer producing industrial machinery, rock drills, Unic cranes, metals, and electronics for diverse industrial sectors worldwide.

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Business Overview

Furukawa Machinery and Metals is a diversified company operating across multiple business segments. Its main operations are divided into industrial machinery, rock drills, Unic cranes, metals, electronics, chemical products, and real estate divisions. These businesses are primarily conducted through core operating companies including Furukawa Sangyo Kikai Systems, Furukawa Rock Drill, Furukawa Unic, Furukawa Metal Resources, Furukawa Electronics, and Furukawa Chemicals.

In the industrial machinery division, Furukawa Sangyo Kikai Systems manufactures and sells pumps, crushers, and belt conveyors. The rock drill division is operated by Furukawa Rock Drill, which provides hydraulic breakers and tunnel construction machinery. In the Unic crane division, Furukawa Unic manufactures Unic cranes and mini-crawler cranes.

The metals division, operated by Furukawa Metal Resources, sells metals including copper, gold, and silver. The electronics division, run by Furukawa Electronics, manufactures high-purity metallic arsenic and optical components. The chemical products division, handled by Furukawa Chemicals, deals in sulfuric acid and copper oxide. The real estate division engages in property leasing and sales.

Other divisions include transportation, metal powder operations, and foundry businesses. Furukawa Transport handles logistics, while Furukawa C&F supplies foundry products. Through these diverse operations, Furukawa Machinery and Metals serves a wide range of industrial sectors.

Management Policy

As Furukawa Machinery and Metal approaches its 150th anniversary in 2025, the company has adopted the vision "FURUKAWA Power & Passion 150." Under this vision, the company aims to realize "a corporate group that grows with category-leading and unique offerings as its foundation," with a target of stabilizing consolidated operating profit at over 15 billion yen.

The company's growth strategy focuses on enhancing the value of the Furukawa brand through marketing management that incorporates CSV (Creating Shared Value). Specifically, it aims to strengthen technical sales capabilities tailored to customer needs and promote product development aligned with market demands, while contributing to the resolution of social challenges.

Sustained expansion of the machinery business is also a key part of the strategy. The company is strengthening its revenue base in overseas markets, particularly in infrastructure and resource development, while expanding recurring revenue businesses. It also seeks to leverage the group's comprehensive capabilities to expand business opportunities through enhanced engineering capabilities.

Expanding the human resources foundation is integral to the growth strategy. The company is developing a vibrant new generation of Furukawa talent and securing and cultivating diverse personnel both domestically and internationally, while strengthening sales and service personnel. Through these efforts, the company aims to achieve sustained growth and improve corporate value over the medium to long term.

Additionally, the company is actively pursuing investments that contribute to enhancing corporate value. It is pursuing capital expenditures necessary for growth, strategic M&A, and business expansion through alliances to strengthen its management foundation. This aims to improve ROE and establish a solid financial base.

Through these strategies, Furukawa Machinery and Metal seeks to contribute to the realization of a sustainable society while achieving both corporate and social value.

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