CHIYODA UTE CO.,LTD. (E01197) Stock Price

Chiyoda Wute is a company whose main business is the manufacturing and sales of building materials, centered on gypsum board. The company handles gypsum board production through to sales in an integrated manner and operates as a major supplier of interior materials in the construction industry.

The company group consists of 11 subsidiaries in total, including 8 consolidated subsidiaries, and 2 affiliated companies, with a single-segment structure centered on the gypsum board business. Its primary customers are construction and building industry operators, and the company generates revenue by supplying gypsum board used in interior construction work for residential and commercial facilities.

In its business operations, the company has established a vertically integrated system covering manufacturing, transportation, and processing. In the transportation division, Chiyoda Express and Tokai Express handle specialized operations, while the Chiyoda Processing Center manages product processing. In addition to gypsum board, the company also operates related building material sales through subsidiaries such as Chiyoda Green Sera and Chiyoda Metal Stud.

Chiyoda Uote is pursuing a growth strategy based on a capital and business alliance with the Knauf Group, the world's largest gypsum board manufacturer. Building on the partnership established in 2020, the company became a wholly owned subsidiary of Knauf through a public tender offer in 2022. The company has set a target EBITDA margin exceeding 10% and aims to maximize cash flow from business operations.

In priority investment areas, the company is concentrating investment in gypsum board operations. By leveraging Knauf Group's global-scale gypsum raw material resources, it is reducing raw material procurement costs and establishing a stable supply system. The company is also utilizing the Group's technological capabilities and research and development strength to improve manufacturing technology and enhance product development capabilities, driving the development of high-performance, high-value-added products. The company is actively pursuing operational efficiency improvements centered on IT investment.

In new market development, the company is expanding its business scope through increased sales of adjacent product categories such as insulation materials and technical boards—gypsum boards with specialized functions including fire resistance, load-bearing capacity, water resistance, and sound insulation properties. In response to the challenging domestic housing market contraction, the company aims to expand domestic market share and create new growth opportunities by identifying new demand for gypsum boards and developing adjacent markets.

In technological innovation efforts, the company is advancing manufacturing technology and strengthening product development capabilities by leveraging Knauf Group's global technological assets. The company is pursuing differentiation through proprietary technology by utilizing intellectual property rights, including manufacturing know-how and patents developed worldwide in gypsum board production. The company is also focusing on improving customer service quality in product supply and technical support, strengthening its competitive advantage as a specialized building materials manufacturer.