Sumitomo Forestry Co.,Ltd. (1911) Stock Price

Market cap
¥875.9B
P/E ratio
9.1x
Sumitomo Forestry operates timber, housing construction, and real estate businesses across five segments, serving residential and commercial customers globally.

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Business Overview

Sumitomo Forestry operates five major business segments: timber and building materials, housing, architecture and real estate, resources and environment, and other businesses.

The timber and building materials segment handles the procurement, manufacturing, processing, and sale of lumber and building materials, including logs, chips, lumber products, and plywood. Key affiliated companies include Sumitomo Forestry Crest and PT. Kutai Timber Indonesia.

The housing segment engages in construction of single-family and multi-family homes, renovation work, sales of residential properties, and rental, management, and sale of real estate. Sumitomo Forestry Home Engineering and Sumitomo Forestry Home Service are affiliated companies in this segment.

The architecture and real estate segment conducts overseas residential property sales, single-family home construction, and multi-family housing development. Numerous affiliated companies, including the Henley Group and Metricom Group, are involved in this business.

The resources and environment segment promotes the use of renewable energy and forest resources. Monbetsu Biomass Power and Tasman Pine Forests are principal affiliated companies.

Other businesses include the operation of paid senior living facilities, insurance agency services, and civil and construction contracting. Sumirin Enterprise and Sumirin Care Life operate as affiliated companies in these areas.

Management Policy

Sumitomo Forestry is pursuing a sustainable society through its long-term vision "Mission TREEING 2030." This vision aims to simultaneously enhance three forms of value: the global environment, people and society, and market economy. Specifically, the company is advancing decarbonization and circular bioeconomy establishment, evolution of global expansion, challenges in creating new value, and reform of its business foundation.

The medium-term management plan "Mission TREEING 2030 Phase 1" is based on the following principles: decarbonization through wood resource utilization, strengthening revenue foundations, accelerating global expansion, reinforcing management foundations for sustainable growth, and integrating business operations with ESG. Through these initiatives, the company aims to increase group-wide operating profit to 350 billion yen by 2030.

At the center of Sumitomo Forestry's growth strategy is the WOOD CYCLE, which leverages "wood" as a renewable natural resource. The company operates across the entire value chain—from forest management to timber and building material procurement and manufacturing, wooden architecture, and wood biomass power generation—to realize a decarbonized society. This contributes to achieving a sustainable and prosperous society.

"Mission TREEING 2030 Phase 2" targets revenue of 3.22 trillion yen and operating profit of 280 billion yen, while advancing decarbonization initiatives, improving earning power, deepening global expansion, strengthening management foundations, and integrating business operations with ESG. Through these efforts, the company aims to achieve both sustainable growth and social contribution.

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