Asahi Pen

Basic Information

Stock Code
4623
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Osaka Prefecture
Establishment Year
September 1947
Listing Year
April 1977
Official Website
https://www.asahipen.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Azuma House, Dainichiseika Color & Chemicals, Dainippon Toryo, Nippon Paint Holdings, Kansai Paint, Chugoku Marine Paints, Fujikura Composites, SK Kaken, Daishin Chemical, DIC, Sakata INX, artience, Toami

Overview

Asahi Pen is a specialized manufacturer of household paints and house care products, established in 1947 with its head office in Osaka. It is known in the domestic market for its high market share and eco-friendly product development.

Current Situation

Asahi Pen reported consolidated sales of approximately 13.4 billion yen and operating profit of approximately 600 million yen for the fiscal year ended March 2019, maintaining solid performance. In its mainstay household paint segment, it has established market competitiveness through a diverse lineup including water-based paints and spray paints. In lifestyle-related products, it focuses on developing and selling house care and gardening products to pursue diversification. Many of its products have obtained Eco Mark certification, with environmentally friendly product development being a key strength. It operates factories and sales offices nationwide, building an extensive distribution network. In the 2020s, it listed on the Tokyo Stock Exchange Standard Market, striving to enhance corporate transparency and market adaptability. Moving forward, it plans to invest further in product development and expand logistics centers, aiming for growth through regional closeness. Challenges include intense price competition from competitors and fluctuations in raw material prices. As part of creating sustainable living environments, it is expanding its range of related products beyond paints. The company also emphasizes technical training for employees to achieve stable quality control.

Trivia

Interesting Facts

  • The company name is a shortened form of the original 'Asahi Paint,' but it does not manufacture pens.
  • It sold detergent products during the 1970s-80s.
  • There was a history of a slanted pail can sculpture on the roof of the Osaka head office building.
  • Its CM song, 'Naniwa no Mozart' composed by Kita Taro, has been used for many years.
  • In 2020, original characters 'Penkeys' were created to promote DIY awareness.
  • Moved to the Standard Market in the 2022 TSE market reorganization.
  • Operates multiple distribution centers nationwide to improve logistics efficiency.
  • Eco Mark certified products enjoy high support in the household paint industry.
  • Transition to household paint specialist manufacturer began in the 1960s.
  • Once had a cosmetics division but withdrew in the 1990s.

Hidden Connections

  • Strong local Osaka corporate network as a member of the Daiwa-kai.
  • Close shareholder relations with major financial institutions like Sumitomo Mitsui Bank and Mitsubishi UFJ Bank.
  • One of the main competitors to top player Nippon Paint in household paints.
  • Sponsors a pavilion at Kidzania Koshien.
  • Wide-area deployment company with multiple regional sales offices and factories.
  • Focuses on digital marketing such as LINE stamps.
  • Features diversified business including OEM production and joint development.
  • Strong ties to TV broadcasting due to long CM history.

Future Outlook

Growth Drivers

  • Growing demand for environmentally friendly products
  • Expanding DIY market
  • Growth in housing remodeling market
  • Increasing gardening demand
  • Strengthening regional closeness sales

Strategic Goals

  • Eco Mark certified product ratio over 70%
  • Diversification of domestic and international sales channels
  • Expansion of new lifestyle-related product development
  • Optimization and efficiency of logistics network
  • Aiming to improve corporate ESG ratings

Business Segments

Architectural Paint Supply

Overview
Provides highly durable paints and repair materials for construction sites.
Competitiveness
Stable supply of high-quality, environmentally friendly paints
Customers
  • Construction Companies
  • Remodeling Contractors
  • Carpentry Shops
  • Equipment Maintenance Companies
  • Public Facility Managers
Products
  • Professional Paints
  • Waterproof Paints
  • Heat-Shielding Paints
  • Primers
  • Repair Materials

Home Care Products Wholesale

Overview
Wholesale distribution of consumer home care products.
Competitiveness
Brand recognition and product convenience
Customers
  • Retailers
  • Home Centers
  • Drugstores
  • Mail Order Companies
  • DIY Shops
Products
  • House Detergents
  • Wax
  • Repair Tapes
  • Sticker Removers
  • Mold Removers

Industrial Chemical Products Provision

Overview
Supplies multifunctional paints and chemical products for industrial fields.
Competitiveness
Niche application support and technical expertise
Customers
  • Manufacturers
  • Processors
  • Chemical Plants
  • Building Material Manufacturers
  • Painting Services
Products
  • Professional Paints
  • Specialized Performance Paints
  • Adhesives
  • Abrasives
  • Additives

Logistics and Delivery Services

Overview
Supports efficient delivery through logistics centers nationwide.
Competitiveness
Regional logistics infrastructure and rapid response
Customers
  • Logistics Companies
  • Wholesalers
  • Retail Chains
  • E-commerce Operators
  • Manufacturer Logistics Departments
Products
  • Distribution Center Operations
  • Inventory Management
  • Delivery Coordination
  • Packaging Materials
  • Logistics Consulting

Gardening Supplies Wholesale

Overview
Wholesale provision of extensive gardening supplies.
Competitiveness
Abundant product variety and quality control
Customers
  • Garden Centers
  • Home Centers
  • Landscaping Contractors
  • Interior Shops
  • Building Material Traders
Products
  • Garden Furniture
  • Wood Lattice
  • Fences
  • Parasols
  • Storage Units

DIY Product Supply

Overview
Provides convenient and user-friendly product lineup for DIY users.
Competitiveness
Product planning unique to a specialist manufacturer
Customers
  • Home Centers
  • DIY Specialty Stores
  • Retail Chains
  • Mail Order Companies
  • Carpentry Shops
Products
  • Paint-Related Consumables
  • Repair Kits
  • Painting Tools
  • Adhesive Sets
  • Construction Sundries

Imported Paints and Materials Sales

Overview
Provides advanced imported products to the domestic market.
Competitiveness
Bridging overseas sourcing and market needs
Customers
  • Domestic Agents
  • Specialty Retailers
  • Design Offices
  • Imported Furniture Manufacturers
  • Imported Building Material Dealers
Products
  • Overseas Specialty Paints
  • Repair Materials
  • Decorative Materials
  • Imported DIY Tools
  • Goods Sales

Technical R&D Support

Overview
Provides research materials and services specialized in technology development.
Competitiveness
Accumulated technical know-how
Customers
  • Paint Manufacturers
  • Research Institutes
  • Building Material Development
  • University Research Facilities
  • In-House Corporate Research
Products
  • New Material Development
  • Test Paints
  • Sample Provision
  • Performance Evaluation Services
  • Consulting

Environmentally Friendly Product Development

Overview
Develops and supplies eco products compliant with environmental regulations.
Competitiveness
Numerous Eco Mark certified products
Customers
  • Local Governments
  • Environmental Companies
  • Construction Companies
  • Carpentry Shops
  • Manufacturers
Products
  • Low-VOC Paints
  • Eco Cleaners
  • Recycled Materials
  • Environmental Filters
  • Environmental Testing

Sales Promotion Support

Overview
Provides services to support sales promotion and customer education.
Competitiveness
Extensive industry knowledge and track record
Customers
  • Retail Stores
  • Sales Agents
  • Mail Order Operators
  • House Manufacturers
  • Advertising Agencies
Products
  • Promotional Goods
  • Advertising Materials
  • Event Planning
  • Product Explanation Tools
  • Customer Education Programs

Logistics and Warehouse Management

Overview
Deploys efficient operation services for in-house and outsourced logistics.
Competitiveness
Flexible response via nationwide network
Customers
  • Internal Logistics Departments
  • Wholesale Distributors
  • Distribution Companies
  • Distribution Centers
  • E-commerce Operators
Products
  • Inventory Management
  • Delivery Coordination
  • Warehouse Management Systems
  • Packaging Support
  • Logistics Efficiency Support

OEM and Joint Development

Overview
Addresses diverse needs through OEM manufacturing and joint planning.
Competitiveness
Flexible production technology and planning capabilities
Customers
  • Other Paint Manufacturers
  • Retailers
  • Building Material Companies
  • House Care Brands
  • Lifestyle Goods Manufacturers
Products
  • Custom Paints
  • Original Brand Paints
  • Customized Repair Materials
  • Character Designs
  • Sales Planning Support

Competitive Advantage

Strengths

  • High market share in household paints
  • Diverse product lineup
  • Numerous Eco Mark certified products
  • Long-standing brand recognition
  • Nationwide distribution network
  • Solid financial foundation
  • Accumulated technological development capabilities
  • Comprehensive customer support system
  • Diversified business operations
  • Strong regional closeness sales approach

Competitive Advantages

  • Early development and market launch of environmentally friendly products
  • Strong product planning for DIY market
  • Secured wide-ranging distribution channels
  • Stable supply via nationwide factory network
  • Expansion into diverse lifestyle products
  • Specialized technical support and customization
  • Stable customer base and high repeat rate
  • Implementation of sales strategies tailored to regional conditions
  • Good balance of tradition and innovation
  • Transparency and reliability as a listed company

Threats

  • Raw material price fluctuation risks
  • Intensifying intra-industry price competition
  • Market fragmentation by new entrants
  • Cost increases from stricter environmental regulations
  • Trend of customers moving away from DIY
  • Market penetration of foreign products
  • Challenges in talent acquisition and development
  • Economic fluctuations cooling consumer sentiment
  • Rising logistics costs
  • Decline in competitiveness due to delayed technological innovation

Innovations

2024: Launch of New Eco Water-based Paint

Overview
Introduced the latest environmentally friendly water-based paint that balances VOC reduction and weather resistance.
Impact
Achieved reduction in environmental impact and improved customer satisfaction.

2023: Development of Smart DIY Painting Kit

Overview
Launched a painting set optimized for ease of use for beginners.
Impact
Contributed to acquiring new customers in the DIY market.

2022: Development of Odorless Anti-Mold Paint

Overview
Developed an anti-mold functional paint with minimal irritating odor suitable for indoor use.
Impact
Contributed to improving healthy home environments.

2021: New Eastern Japan Logistics Center

Overview
Opened a new logistics center in Honjo City, Saitama Prefecture, significantly improving delivery efficiency.
Impact
Realized faster delivery and higher customer satisfaction.

2020: Expansion of Eco Mark Certified Products

Overview
Obtained environmental certification for 26 improved products, strengthening market competitiveness.
Impact
Increased acquisition of environmentally conscious customers.

Sustainability

  • Ongoing rollout of Eco Mark certified products
  • Promotion of waste reduction in manufacturing processes
  • Expansion of renewable energy use
  • Promotion of packaging material recycling
  • Regional cleanup activities and environmental education support