OCHI Holdings

Basic Information

Stock Code
3166
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Fukuoka Prefecture
Establishment Year
October 2010
Listing Year
October 2010
Official Website
https://www.ochiholdings.co.jp/
TSE Information
TSE Information
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Overview

OCHI Holdings is the largest wholesaler of residential building materials, established in 2010, operating primarily in Kyushu with expansion to Kansai, Shikoku, and Chugoku regions, and engaging in diverse building materials-related businesses as a trading company.

Current Situation

OCHI Holdings boasts consolidated net sales of approximately ¥115.6 billion, net assets of ¥21.5 billion, and 1,487 employees for the fiscal year ended March 2023. As Kyushu's leading housing building materials wholesaler, it possesses bases in the Kansai, Shikoku, and Chugoku regions and steadily expands its operations. Centering on its core construction business while also developing processing, engineering, and environmental amenity businesses, it has built a multifaceted revenue base. Following its transition to the Tokyo Stock Exchange First Section in 2014, it shifted to the Standard Market in 2023, flexibly adapting to changes in the market environment. Through numerous group subsidiaries, it provides integrated services from procurement to sales and processing of a wide range of building materials products. In recent years, it has focused on strengthening its environmental amenity business, technology development, and new ventures into engineering. While advancing the sophistication of building materials distribution and environmental initiatives, it leverages its regional proximity strengths to secure stable profits. Going forward, it aims to address the diversifying needs for regional residential building materials and provide sustainable architecture-related services as key strategic priorities. By reinforcing the unified management foundation across the corporate group, it has solidified its position as the top building materials distributor from Kyushu to the Chugoku region.

Trivia

Interesting Facts

  • Specialized in residential building materials wholesaling since establishment in 2010
  • Powerful parent-subsidiary listing structure centered on Ochi Industry
  • Holds top market share in building materials distribution in Kyushu region
  • Early entry into environmental amenity business for diversification
  • Thick trust from customers due to regionally rooted management
  • High-precision pre-cut processing technology matching site needs
  • Owns multiple processing and engineering subsidiaries
  • Stability as a Tokyo Stock Exchange Standard Market stock
  • Supports regional construction industry technically and logistically
  • Stable company with consistent revenue growth since founding
  • Established top-class industry position despite paid-in capital of ¥400 million
  • President as major shareholder aligns management and shareholder interests
  • Attracting attention not only in building materials wholesaling but also environmental fields
  • Group companies span diverse areas, strength in comprehensive capabilities
  • Sensitive response to regional changes in real estate market

Hidden Connections

  • Promotes resource circulation through close group collaboration with Ochi Industry
  • Strong ties with construction industry associations from Kansai to Shikoku and Chugoku
  • Built cooperative relationships with local municipalities in environmental amenities
  • Multiple subsidiaries hold industry top-class technology in specific fields
  • President personally as major shareholder aligns management and shareholder benefits
  • Technical synergy from collaboration between processing and engineering businesses
  • Extensive regional deployment in construction business forms strong barrier against competitors
  • Possesses in-house specialized team for promoting environmental sustainability

Future Outlook

Growth Drivers

  • Stable recovery in regional construction demand
  • Expansion in demand for environmentally friendly building materials
  • Value enhancement through advanced processing technology
  • Synergy creation via group structure
  • Business efficiency through DX promotion
  • Growth in remodeling market
  • Deepening of regionally rooted sales
  • Advancement of logistics network and cost reductions
  • Active investments in new business areas
  • Business expansion from responses to strengthened environmental regulations
  • Diversification of overseas expansion and procurement
  • Maintaining competitiveness through employee development and talent strengthening

Strategic Goals

  • Achieve building materials wholesaling sales exceeding ¥130 billion
  • Expand environmental amenity business sales ratio to 20%
  • Improve operating profit margins in processing and engineering businesses
  • Establish company-wide DX framework and promote business automation
  • Expand handling of energy-saving building materials for decarbonization society
  • Enhance corporate brand through strengthened regional community collaboration
  • Flexible and efficient group strategy under holding company
  • Realize diversity and secure talent through women's active advancement
  • Maintain and improve waste recycling rate above 30%
  • Develop new products through introduction of new technologies and materials

Business Segments

Building materials wholesaling

Overview
Handles intermediate wholesale of housing-related building materials, covering widely from Kyushu to Chugoku region.
Competitiveness
Regionally rooted network and diverse product lineup
Customers
  • Residential construction companies
  • Remodeling companies
  • Local builders
  • General contractors
  • Hardware stores
  • Architectural design offices
  • Housing manufacturers
  • Government agencies
  • DIY shops
  • Trading companies
Products
  • Roofing materials
  • Wall panels
  • Flooring materials
  • Construction materials
  • Housing equipment
  • Insulation materials
  • Waterproofing materials
  • Architectural hardware
  • Lighting fixtures
  • Piping materials
  • Termite-proof materials
  • Exterior materials

Construction processing business

Overview
Provides high-precision wooden pre-cut and framing processing, contributing to construction site efficiency.
Competitiveness
High-quality, short-delivery response with latest processing equipment
Customers
  • Construction companies
  • Remodeling contractors
  • Housing manufacturers
  • Design offices
  • Residential developers
Products
  • Wooden pre-cut products
  • Framing materials
  • Structural processed materials
  • Custom-made materials

Environmental amenity business

Overview
Provides waste disposal and related equipment aimed at reducing environmental impact.
Competitiveness
Customized services tailored to regional environmental needs
Customers
  • Municipalities
  • Industrial waste processors
  • Construction companies
  • Environmental companies
Products
  • Waste disposal services
  • Environmental protection equipment
  • Recycled materials

Engineering business

Overview
Offers planning, design, construction, and maintenance for architectural and equipment works.
Competitiveness
Reliability based on technical expertise and extensive track record
Customers
  • Factory equipment managers
  • Construction companies
  • Public entities
  • Manufacturing companies
Products
  • Equipment design and construction
  • Survey and analysis services
  • Maintenance services

Residential equipment sales

Overview
Handles sales of various equipment for residential use.
Competitiveness
One-stop supply handling diverse equipment brands
Customers
  • Local builders
  • Equipment contractors
  • Residential construction companies
Products
  • Kitchen equipment
  • Bathroom equipment
  • Toilet and vanity equipment

Remodeling support services

Overview
Provides specialized material supply and support services for the remodeling market.
Competitiveness
Proposal capabilities leveraging specialized knowledge and regional information
Customers
  • Remodeling companies
  • Homeowners
  • Real estate management companies
Products
  • Remodeling building materials
  • Design support tools
  • Construction management support

Wood processing sales

Overview
Sales of high-precision wood processed products from in-house factories.
Competitiveness
Utilization of local materials and rapid response
Customers
  • Residential construction companies
  • Furniture manufacturers
  • Building materials stores
Products
  • Pre-cut lumber
  • Processed wood products
  • Custom wood production

Used building materials recycling

Overview
Supports reuse of construction waste and resource circulation.
Competitiveness
Proprietary collection and processing system
Customers
  • Construction companies
  • Recycling companies
  • Environmental companies
Products
  • Recycled building materials
  • Recycled materials

Logistics center operations

Overview
Establishes efficient logistics management and delivery systems.
Competitiveness
Rapid delivery through regional collaboration
Customers
  • Building materials manufacturers
  • Retail stores
  • Local builders
Products
  • Building materials storage
  • Delivery services

Architectural hardware sales

Overview
Provides hardware products for all construction sites.
Competitiveness
Extensive product range and ample inventory
Customers
  • Carpenters
  • Construction contractors
  • Trading companies
Products
  • Screws and bolts
  • Fittings
  • Reinforcing materials

Equipment maintenance services

Overview
Equipment management services for maintaining living environments and ensuring safety.
Competitiveness
Rapid response by specialized technicians
Customers
  • Residential management companies
  • Public facilities
  • Factories
Products
  • Equipment inspections
  • Repair services
  • Periodic maintenance

Imported housing equipment sales

Overview
Supplies high-quality overseas equipment to the Japanese market.
Competitiveness
Quality assurance through carefully selected imports
Customers
  • Housing manufacturers
  • Equipment contractors
  • Local builders
Products
  • Imported water-related equipment
  • High-performance insulation products

Competitive Advantage

Strengths

  • Kyushu's largest residential building materials wholesale network
  • Customer responsiveness through regional closeness
  • Wide handling of diverse building materials and housing equipment
  • Integrated service provision via group companies
  • Advanced processing technology and equipment ownership
  • Business diversification through entry into environmental sector
  • Long-standing trust and track record
  • Stable financial base
  • Deep understanding and collaboration with the region
  • Broad sales channel deployment
  • Highly specialized technical staff
  • Efficient logistics network
  • Product procurement responsive to customer needs
  • Leveraging benefits of parent-subsidiary listings
  • Strong leadership from top management

Competitive Advantages

  • Regional superiority covering Kyushu, Kansai, Shikoku, and Chugoku
  • Integrated operations from building materials procurement to processing and sales
  • Group structure covering specialized fields through numerous subsidiaries
  • Extensive lineup and high-quality provision of housing-related materials
  • Developing new customer segments via environmental amenity business
  • Building close trading relationships rooted in the region
  • Shortened delivery times through advanced processing technology with latest equipment
  • Reliability from Tokyo Stock Exchange Standard Market listing
  • Diverse sales channels and extensive customer touchpoints
  • Rapid decision-making due to top management's shareholding ratio
  • Efficient management under holding company structure
  • Enhanced competitiveness through medium- to long-term growth strategies and investments
  • Solid market position in building materials wholesaling industry
  • Stable fundraising and sales capabilities
  • Value-added provision through synergy creation across businesses

Threats

  • Risks from fluctuations in residential construction market
  • Demand contraction due to population decline in regional markets
  • Rising building materials prices and raw material cost increases
  • New entries by competitors and price competition
  • Risks from changes in regulations such as Building Standards Act
  • Concerns over supply chain disruptions from natural disasters
  • Increased adaptation costs from strengthened environmental regulations
  • Constraints on business activities due to labor shortages
  • Exchange rate risks from dependence on imported building materials
  • Decline in competitiveness from delays in adopting new technologies
  • Delays in responding to rapid changes in market needs
  • Risks in integrated group operations

Innovations

2023: Expansion of environmental amenity business

Overview
Strengthened waste disposal and recycling services aimed at reducing environmental impact.
Impact
Contributes to acquiring new customers and diversifying revenue

2022: Introduction of latest pre-cut processing equipment

Overview
Introduced automated equipment for wood processing to improve quality and production efficiency.
Impact
Achieved shortened processing delivery times and improved yield

2021: Advancement of logistics systems

Overview
Improved delivery efficiency through IT integration at logistics centers and strengthened regional collaboration.
Impact
Successfully reduced delivery costs by 10%

2020: Expansion of eco-building materials handling

Overview
Expanded lineup of environmentally friendly building materials and energy-saving products.
Impact
Responds to customers' environmental considerations

Sustainability

  • Improve recycled resource ratio for building material waste to 30% by 2025
  • Develop and introduce energy-saving logistics systems
  • Promote resource and energy conservation across the group
  • Active participation in regional environmental beautification activities
  • Promote market development for sustainable building materials
  • Implement environmental education programs for employees
  • Strengthen promotion of green procurement
  • Establish internal standards for CO2 emission reductions
  • Expand introduction of eco-offices
  • Promote cooperation in reducing waste at construction sites
  • Thorough compliance with environmental laws and regulations
  • Build model cases for new energy utilization