NIHON DECOLUXE CO.,LTD. (7950) Stock Price

Japan Decorlux is a company whose main business is manufacturing and selling building materials, as well as leasing real estate. The company produces and sells decorative laminates and other building materials, laminated boards for electronic components, chemical anchors used at construction sites, and also leases office buildings it owns.

Its primary customers are construction companies, interior contractors, furniture manufacturers, and electronic equipment manufacturers in the manufacturing and construction sectors. Revenue is primarily driven by product sales, with significant sales from decorative laminates and substrate materials, while rental income from the real estate business provides a stable revenue stream.

The business is divided into two main pillars: building materials and real estate. In the building materials business, the company offers a product lineup including high-pressure and fire-resistant decorative laminates, resin laminated boards for printed circuit boards, and adhesives for anchor bolts. In the real estate business, it secures stable earnings through ownership and management of rental office buildings.

The company aims to expand sales and profits through its growth strategy, centered on existing businesses serving the architecture, interior design, electronics, and furniture sectors. Specifically, the company is focusing on high-growth fields including the introduction of fire-resistant melamine decorative boards to the renovation market, the "BioMarble Counter" for kitchen and bathroom markets, and chemical anchors for infrastructure applications. The company has set a target return on equity (ROE) of approximately 2.70% as a key performance indicator.

In priority investment areas, the company is allocating resources to both product development and production capacity. Following the environmentally conscious cartridge "ChemiTube® GL," which reduces waste by 85% compared to previous levels, the company is introducing "ChemiTube® EL" and plans to differentiate itself by converting all cartridge products to the "ChemiTube®" series. Additionally, following investments at the Mie plant, the company is strengthening production capacity at its decorative board factory to meet growing demand.

For new market development and business expansion, the company aims to increase market share in renovation and kitchen and bathroom markets by expanding its product lineup and enhancing customer service to drive orders. The company will maintain its office building rental business as a stable revenue source while strengthening the overall earnings base through expanded sales in the building materials sector.

The company's technology innovation efforts center on lamination and processing technology for synthetic resins, focusing on developing environmentally conscious products and promoting energy efficiency and recycling in production. Through GX investments such as installing solar panels on factory roofs to increase self-consumption, the company aims to achieve zero-emission factories. The company also seeks to differentiate itself through material development such as BioMarble, with the goal of providing products and services that exceed customer expectations.