MAEDA KOSEN CO., LTD. (7821) Stock Price

Maeda Kosen is a manufacturer specializing in the production and sale of civil engineering and construction materials, agricultural materials, and nonwoven fabrics made from textiles and resins. The company also manufactures industrial products such as lightweight aluminum forged wheels for automobiles. In addition to environment and infrastructure products—including embankment reinforcement materials, civil engineering sheets, drainage materials, vegetation products, and concrete repair materials—the company provides various product lines using nonwoven fabrics as raw materials.

The company's primary customers include construction companies, local governments, agricultural businesses, as well as automotive manufacturers through original equipment manufacturing (OEM) contracts, aftermarket sales channels, secondary processing manufacturers, and companies in the medical and hygiene sectors. Revenue is primarily driven by sales of civil engineering, construction, and agricultural materials, along with nonwoven fabrics, while OEM supply and general sales of automotive wheels represent important revenue sources.

The business is divided into two segments: "Social Infrastructure Business" and "Industry Infrastructure Business," each with its own product lines. The Social Infrastructure segment handles geosynthetics, synthetic resin products, agricultural and disaster prevention materials, and synthetic lumber from overseas production. The Industry Infrastructure segment designs, manufactures, and sells industrial textile products including premium forged wheels and cleanroom wiping cloths.

The company positions its growth strategy on three pillars: mergers and acquisitions (M&A), expansion of overseas operations, and talent development, with the aim of maximizing corporate value. It has executed 17 M&A transactions since 2000 and evaluates progress using objective metrics including operating profit, operating profit margin, EBITDA, return on equity (ROE), and return on invested capital (ROIC). While specific numerical targets are not disclosed, the company aims to improve profitability through these metrics and increase the ratio of overseas sales.

The company identifies social infrastructure materials and industrial products as priority investment areas, with differentiation stemming from proprietary product lines created by "blending" fiber and resin technologies. Specific examples include geosynthetics for civil engineering, drainage and vegetation materials, nonwoven fabrics for hygiene and industrial applications, and high-value-added forged wheels. To enhance quality, the company is strengthening quality control at the design stage, conducting rigorous durability testing, and reinforcing its quality assurance division. On the procurement side, the company is globalizing sourcing routes and strengthening its purchasing function to address raw material price fluctuations and supply chain risks.

The company is reinforcing its overseas production and sales operations to develop new markets. Through establishing a Vietnamese subsidiary in 2011, integrating BBS-related operations in 2013, and forming sales partnerships with overseas companies in 2016 and 2020, it has expanded distribution channels centered on Europe, North America, and ASEAN. Going forward, the company plans to increase production capacity through factory expansions at overseas subsidiaries and capture regional demand. It also aims to broaden its sales network through business partnerships with overseas companies and create new markets by complementing business domains and technologies through M&A.

The company is also focusing on technological innovation, accelerating commercialization through strengthened research and development systems and collaboration with the sales division. It is conducting research aligned with national disaster prevention and mitigation initiatives and infrastructure aging countermeasures, while enhancing added value by refining advanced manufacturing techniques for forged wheels and industrial technologies such as cutting and ultrapure water cleaning. On the human resources front, the company is improving training systems and revising evaluation frameworks, aiming to strengthen organizational execution capability through mid-career hiring of ready-to-contribute talent and medium- to long-term talent development.