Nippi,Incorporated (7932) Stock Price

Market cap
¥35.8B
P/E ratio
13.7x
Nippon Collagen manufactures and sells collagen, gelatin, and cosmetics products globally while also operating leather, real estate, and food businesses.

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Business Overview

Nippon Collagen (Nippi) operates multiple business segments and provides a diverse range of products and services. The main business segments include collagen and casing, gelatin-related, cosmetics-related, leather-related, rental and real estate, and food and other businesses.

In the collagen and casing business, Nippi purchases processed raw materials from Ri Pi Jiao Yuan Bai Bai (Tangshan) Co., Ltd. through Daifuku Shoji and manufactures products. These products are sold to users domestically and internationally, with some exported through NIPPICOLLAGEN NA INC.

In the gelatin-related business, Nippi procures raw materials from overseas and manufactures gelatin and collagen peptides. These products are primarily sold to users domestically and internationally, with some distributed through Daifuku Shoji and NIPPI COLLAGEN NA INC.

In the cosmetics-related business, Nippi manufactures collagen raw materials for cosmetics and collagen for health foods. Products are sold to users through Nippi Collagen Cosmetics and include skincare gels and Nippi Collagen 100.

In the leather-related business, Nippi Fujita purchases and sells leather for footwear and automotive applications. These products are sourced through Daifuku Shoji and Ri Pi (Shanghai) Trading Co., Ltd., with some sold as finished shoes.

In the rental and real estate business, Nippi operates real estate rentals in Adachi Ward, Tokyo and Naniwa Ward, Osaka. Nippi Urban Development handles management and consulting operations.

In the food and other business, Daifuku Shoji and Okura Foods sell imported food ingredients and organic grains. The company also manufactures and sells culture medium kits for iPS cell cultivation (iMatrix series) and BSE testing kits.

Management Policy

Nippon Collagen (Nippy) has formulated a new medium-term management plan with the fiscal year ending March 2026 as its initial year and is advancing its growth strategy. The plan is based on prioritizing growth businesses and improving profitability of existing operations, with management focused on cost of capital and stock price awareness. Specifically, the company aims to strengthen returns through investments in growth businesses and efficiency improvements in existing operations.

Nippon Collagen operates diverse businesses including collagen casing and gelatin-related operations. In the collagen casing business, the company is pursuing new market development while monitoring U.S. trade policy trends. Domestically, it is building manufacturing capabilities to meet diverse customer needs and strengthening product offerings tailored to customer requirements.

In the gelatin-related business, profitability has improved through sales price revisions and reduced raw material costs. To counter competitive pressures, the company will continue cost reduction efforts and strengthen partnerships with overseas manufacturing partners. Additionally, it is developing specialized materials for functional and halal applications to differentiate its offerings.

In the cosmetics-related business, amid intensifying competition, the company is focusing on sales of highly distinctive products and targeting new customer acquisition. For health foods, it prioritizes reliability and safety, offering products that address consumer interests. The company is enhancing customer service and promoting sales.

In the leather-related business, operations are influenced by automotive manufacturer trends. The company is focusing on reviewing production processes and establishing new processing technologies. In the footwear and bags division, it is adapting to lifestyle changes and developing new customer bases while maintaining existing distribution channels to improve profitability.

In the rental and real estate business, land leasing operations in Adachi Ward, Tokyo and Naniwa Ward, Osaka are progressing steadily. The company aims to increase awareness of both areas and maximize asset value and business revenue, thereby securing a stable revenue foundation.

In food and other businesses, the organic grain trading division is strengthening relationships with overseas suppliers to maintain stable supply. The Italian food ingredients division is expanding its tomato business with emphasis on traceability. The biotech-related division aims to improve productivity in regenerative medicine fields.

Nippon Collagen has established a "Sustainability Committee" to advance sustainability initiatives and realize legal compliance and fair management. Through addressing climate change prevention, human rights considerations, and ensuring diversity, the company aims to gain trust and empathy from stakeholders.

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