NCN

Basic Information

Stock Code
7057
Industry
Services
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
December 1996
Listing Year
March 2019
Official Website
https://www.ncn-se.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
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Overview

NCN is a pioneering service industry company established in 1996, specializing in seismic design technology for wooden buildings, and continues debt-free management based on its proprietary SE method.

Current Situation

NCN recorded net sales of approximately 6.4 billion yen and net profit of approximately 220 million yen for the fiscal year ended March 2021, maintaining a stable business foundation. Its mainstay SE method is a proprietary technology that enhances seismic performance of wooden buildings, with a track record of over 25,000 buildings. It also offers sales of wooden structure-related components and design services, earning high evaluation in the industry. With debt-free management and excellent financial soundness, growth is expected amid increasing housing demand in the 2020s. It receives high social recognition for promoting sustainable wooden construction and utilizing wood resources, capturing the expansion of environmentally considerate architecture needs. It plans to strengthen the two pillars of high-quality architectural design and component sales, pursue new technology development and market expansion. Its expertise in seismic design technology is a significant competitive advantage in earthquake-prone Japan, with efforts focused on expanding architectural consulting business. Interest in opening up rural wooden housing markets and overseas markets is gradually increasing. As a newly listed company, it leverages raised funds to build a mid-to-long-term business growth foundation.

Trivia

Interesting Facts

  • Company established triggered by the Great Hanshin-Awaji Earthquake damage.
  • SE method is proprietary technology specialized in seismic design for wooden buildings.
  • Has maintained debt-free management since establishment.
  • Cumulative track record of over 25,000 SE method constructions.
  • Receives high industry evaluation for improving seismic performance of wooden buildings.
  • Also offers housing loan brokerage services through related subsidiaries.
  • Head office located in Akasaka Eight One Building, Minato-ku, Tokyo.
  • Listed on TSE Standard Market in 2019.
  • Transactions with numerous local governments backed by abundant construction record.
  • Broad customer base from small contractors to major general contractors due to high expertise.
  • Also develops proprietary brand connection hardware dedicated to SE method.
  • Evaluated for not only technical strength but also management stability.
  • Founder Ikuo Tasa is a renowned expert in the industry.
  • Provides housing seismic diagnosis services to meet social needs.
  • Actively engaged in promoting wood reuse.

Hidden Connections

  • Historical relationship as a joint venture between Seven Industry and Nissho Iwai (now Sojitz).
  • Possesses group of subsidiaries related to housing construction, enabling one-stop services.
  • Secured credibility from capital markets through TSE listing, utilizing for technology development funds.
  • Collaborative efforts with local governments' disaster prevention plans due to importance of high seismic retrofitting.
  • Strengthened housing purchase support through collaboration with housing loan service subsidiary.
  • Increasing cases of seismic design technology adoption in public buildings.
  • Historical background where SE method was established with technical support from Hira Shigehiro.
  • Specializes in support for women and small contractors utilizing proprietary wooden seismic technology.

Future Outlook

Growth Drivers

  • Ongoing increase in seismic needs for housing and public facilities.
  • Expansion of technology deployment into large wooden building field.
  • Market development through promotion of local wood utilization.
  • Sophistication of design services through new technology development.
  • Increasing demand for disaster prevention and environmentally considerate housing.
  • Strengthened funding capabilities via TSE listing.
  • Business diversification through increased handling of housing loan services.
  • Activation of wooden housing market in provincial cities.
  • Response to stricter seismic standards from legal revisions.
  • Business efficiency improvement through digital technology utilization.
  • Demand growth from heightened disaster risk management awareness.
  • Increased attention to wooden housing contributing to decarbonized society.

Strategic Goals

  • Achieve 1,500 annual new SE method seismic housing constructions.
  • Expand sales of related component manufacturing to over 4 billion yen.
  • Establish top-class position in large wooden building field.
  • Improve sustainable architectural resource utilization rate to over 80%.
  • Strengthen nationwide deployment of architectural design consulting business.
  • One-stop service integration with housing loan services.
  • Double market capitalization on TSE Standard Market.
  • Full implementation and dissemination of digital design support tools.
  • Expansion of disaster prevention collaboration projects with local governments.
  • Aim to be a leading company in technology for environmental impact reduction and decarbonization response.

Business Segments

Wooden Building Structural Design Support

Overview
Provides seismic design, structural analysis, and consulting for wooden buildings.
Competitiveness
High-seismic design technology using proprietary developed SE method
Customers
  • Architectural design offices
  • Housing manufacturers
  • Local contractors
  • Local governments
  • Real estate developers
  • General contractors
Products
  • SE Method Design Package
  • Seismic Performance Diagnosis Service
  • Structural Design Consulting

Architectural Components Manufacturing and Sales

Overview
Manufactures and sells wood and seismic hardware dedicated to SE method.
Competitiveness
Integrated provision of specialized components optimized for seismic design
Customers
  • Construction companies
  • Lumber yards
  • Housing manufacturers
  • Local contractors
Products
  • Laminated timber
  • Seismic hardware
  • Connection components

Housing Loan Service

Overview
Provides housing loan brokerage and consultation services to home buyers.
Competitiveness
Convenience enhancement through integration of architectural technology and financial services
Customers
  • Housing buyers
  • Real estate companies
  • Financial institutions
Products
  • Housing Loan Brokerage Service
  • Financial Consulting

Large Wooden Building Seismic Design

Overview
Provides seismic design for large wooden buildings such as commercial and public facilities.
Competitiveness
Proprietary technology leveraging scale merits of SE method
Customers
  • Commercial facility developers
  • Local governments
  • School corporations
  • Real estate developers
Products
  • Large Building SE Method Design Support
  • Seismic Performance Evaluation Report

Design Supervision Service

Overview
Total support services from design to construction supervision.
Competitiveness
High technical expertise in wooden seismic field
Customers
  • Architectural firms
  • Local contractors
  • Housing manufacturers
Products
  • Design Supervision Support
  • Seismic Retrofit Proposals

Environmental and Resource Utilization Consulting

Overview
Environmental consulting to promote sustainable wooden architecture.
Competitiveness
Comprehensive support integrating seismic technology and environmental considerations
Customers
  • Local governments
  • Architectural industry associations
  • Corporations
Products
  • Wood Resource Utilization Proposals
  • Environmentally Considerate Architecture Consulting

Competitive Advantage

Strengths

  • Developed and promoted proprietary SE method technology
  • Financial stability from debt-free management
  • Abundant track record in wooden seismic architecture
  • Integrated system from component manufacturing and sales
  • Securing of excellent specialized technicians
  • Credibility from listing on TSE Standard Market
  • Flexible response to small and medium-sized enterprises
  • Wide-ranging services from design to components and finance
  • Corporate stance emphasizing sustainability
  • Customer-oriented consulting capabilities
  • Sales channels geared toward nationwide expansion
  • Diversified business through subsidiaries

Competitive Advantages

  • High seismic performance and safety assurance via SE method
  • Low financial risk corporate structure from debt-free management
  • Reliability backed by over 25,000 construction achievements
  • Supply chain for consistent design and component provision
  • Value-added proposals combining housing-related services
  • Established solid position in small and medium housing market
  • Differentiation achieved through seismic architecture expertise
  • Niche market development leveraging regional characteristics
  • Improved funding and brand via TSE listing
  • Preempting future demand for sustainable wooden architecture
  • Superiority through quality of specialized consulting
  • Comprehensive proposals via collaboration with related subsidiaries

Threats

  • Intensifying price competition in the construction industry
  • Risks from external fluctuations in wood supply
  • Cost increases due to changes in laws and seismic standards
  • Delays in responding to diversifying market needs
  • Heightened competition with large general contractors
  • Uncertainty in construction market due to natural disasters
  • Challenges in keeping pace with new technology development speed
  • Economic stagnation risks such as COVID-19
  • Difficulties in overseas market expansion
  • Impacts from changes in housing-related policies
  • Decline in housing demand due to population decrease
  • Market share erosion from competitors' technological innovations

Innovations

2021: Improvement of SE Method Seismic Design Technology

Overview
Implemented improvements to the framing method to further enhance seismic performance.
Impact
Achieved improved safety and expanded construction scope

2022: Strengthening of Related Components Manufacturing System

Overview
Expanded in-house factories for component production to strengthen quality control.
Impact
Contributed to quality stability and cost reduction

2023: Expansion of Design Services for Large Wooden Buildings

Overview
Launched seismic design support for large wooden buildings such as commercial facilities.
Impact
Achieved acquisition of new markets and diversification of revenue base

2020: Digitalization of Design Supervision Support Services

Overview
Introduced ICT technology into design support tools to improve efficiency.
Impact
Reduced work time and improved customer satisfaction

2024: Environmentally Considerate Wooden Architecture Promotion Project

Overview
Advanced technology development to promote sustainable resource utilization.
Impact
Reduced environmental impact and improved industry evaluation

Sustainability

  • Effective utilization and regeneration promotion of wood resources
  • Manufacturing process improvements aimed at reducing environmental impact
  • Promotion of construction waste recycling
  • Promotion of local wood use and support for regional economic revitalization
  • Maintenance of sound financial base through debt-free management
  • Social contribution to disaster damage reduction via seismic performance
  • Technology development for sustainable housing supply