Sangetsu Corporation (8130) Stock Price

Market cap
¥180B
P/E ratio
13.7x
Sangetsu designs and sells interior materials like wallpaper, flooring, and fabrics across Japan, with overseas operations in the US and Southeast Asia.

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Business Overview

Sangetsu operates three business segments: domestic interior, domestic exterior, and overseas. In the domestic interior segment, the company specializes in wall coverings, flooring materials, and fabrics (curtains and upholstery), handling everything from design to construction for interior spaces. Subsidiaries such as Sangetsu Okinawa and Sangetsu Vorne operate specialized businesses tailored to specific regions and sectors.

In the domestic exterior segment, Sungreen provides exterior products including gates, fences, and carports, serving both residential and non-residential markets. The company also offers landscape design proposals and construction services, meeting diverse customer needs.

In the overseas segment, KOROSEAL INTERIOR PRODUCTS HOLDINGS, INC. in the United States manufactures and sells wallpaper. Goodrich Global Holdings Pte. Ltd. in Singapore sells interior materials throughout Southeast Asia, China, and Hong Kong. Additionally, D'Perception Pte Ltd handles space design and interior construction for offices and commercial facilities, primarily based in Singapore.

Management Policy

Sangetsu is pursuing a transformation into a "Space Creation Company" as its growth strategy. This vision is based on the long-term 10-year vision "DESIGN 2030," which began in fiscal 2020, and focuses on deepening and transforming four core business areas: interior, exterior, overseas, and comprehensive space solutions. The company is also actively exploring and developing new business opportunities.

The medium-term management plan "BX 2025," which began in fiscal 2023, positions the next three years as preparation for the next phase of growth. The plan identifies five key initiatives: human capital, digital capital, solution delivery capabilities, exterior and overseas businesses, and social value creation. Through these efforts, Sangetsu aims to address market needs and social challenges while further enhancing corporate value.

Sangetsu is accelerating growth investments through M&A activities in Japan and overseas, as well as investments in logistics and IT. This has enabled the company to grow operating profit from 8.03 billion yen in fiscal 2014 to 18.17 billion yen in fiscal 2024. Through these initiatives, Sangetsu is working to achieve sustainable growth and value creation.

The company is also reviewing its corporate philosophy, with a new corporate mission announced in January 2024. This mission aims to "create spaces filled with peace and hope for all people" through the generation of both economic and social value. Bottom-up initiatives are being promoted to ensure that each employee understands this mission and becomes an active participant in transforming the company's operations.

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