Nanyo

Basic Information

Stock Code
7417
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Fukuoka Prefecture
Establishment Year
August 1953
Listing Year
November 1994
Official Website
https://www.nanyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Nanyo is a comprehensive machinery trading company based in Fukuoka City, Fukuoka Prefecture, founded in 1953, with sales and rentals of construction machinery and industrial machinery as its main pillars.

Current Situation

Nanyo has achieved consolidated sales of approximately 31.8 billion yen and possesses a solid business foundation in domestic construction machinery rentals and industrial machinery wholesaling. In addition to Japan, it has sales bases in Asia and is focusing on overseas market development. In its core construction machinery business, it captures demand through both rentals and sales, centered on excavators and dump trucks. Its core technologies lie in efficient distribution management of industrial equipment and after-sales service, which serve as key differentiators from competitors. In recent years, it has expanded its handling of environmentally friendly equipment to strengthen sustainability efforts. It employs a unique CM strategy featuring humans dressed as construction machinery to boost customer awareness. With Fukuoka as its base, it is advancing nationwide expansion, and in the medium to long term, it plans to accelerate global business through establishing overseas subsidiaries. Its capital structure features prominent investments from regional financial institutions, contributing to a stable financial base.

Trivia

Interesting Facts

  • Has a history of transitioning from coal business to comprehensive machinery trading company.
  • Famous for unique CM campaigns portraying construction machinery as humans.
  • Regional company from Kyushu that expanded listing to the TSE First Section.
  • Built a group structure of 10 companies including subsidiaries.
  • Recognized as a long-established machinery trading company headquartered in Hakata-ku, Fukuoka City.
  • Expanding bases for construction machinery sales in Asian countries.
  • Local financial institutions contribute to stable management as major shareholders.
  • Early adoption of ICT technology for efficient construction machinery rentals.
  • Strengthening collaboration in construction materials field for business diversification.
  • Approximately 300 employees, deeply rooted in the local community.

Hidden Connections

  • Deep ties with Nishi Nippon City Bank, a financial institution supporting Fukuoka Prefecture's construction industry.
  • Provides one-stop services for heavy vehicle maintenance and construction machinery rentals through subsidiaries.
  • Established a unique position in the industry through construction machinery rentals and sales.
  • Established a subsidiary in Vietnam amid growth in Asia's construction machinery market to develop the market.
  • Original CM strategy contributes to strong brand image centered in the region.
  • Multiple bases in Kyushu, such as the Kitakyushu branch, are key to regional foundation strengthening.
  • Actively advancing SDGs compliance through expanded handling of environmentally related equipment.
  • Key player supporting manufacturing in some metropolitan areas through wholesale of manufacturing inspection machinery.

Future Outlook

Growth Drivers

  • Recovery in domestic construction demand and ongoing infrastructure development.
  • Expansion of industrial machinery demand in Asian markets.
  • Promotion of eco-machinery adoption in response to stricter environmental regulations.
  • Stable revenue from increasing construction machinery rental demand.
  • Improved operational efficiency through ICT technology utilization.
  • New business field development through diversification strategy.
  • Increased transaction opportunities from large-scale local public works.
  • Value creation through advanced maintenance services for customers.
  • Global expansion through establishment of overseas local corporations.
  • Enhanced brand value through sustainability efforts.

Strategic Goals

  • Expand overseas sales ratio to over 20%.
  • Achieve 50% ratio for environmentally friendly construction machinery handling.
  • Expand rental business sales to 60% of total.
  • 30% improvement in business efficiency through ICT utilization.
  • 30% reduction in group-wide CO2 emissions.
  • Strengthen regional market share through local-focused business expansion.
  • Develop new overseas markets and establish local corporations.
  • Enhance lineup of new construction machinery products.
  • Strengthen customer support to improve satisfaction.
  • Strengthen management aligned with SDGs and improve transparency.

Business Segments

Construction Machinery Rental Business

Overview
Nationwide rental services for a variety of construction machinery targeted at construction sites.
Competitiveness
Rapid response and maintenance system rooted in local areas
Customers
  • Construction companies
  • Civil engineering contractors
  • Public works agencies
  • Equipment construction companies
  • Leasing companies
Products
  • Excavator rentals
  • Dump truck rentals
  • Bulldozer rentals
  • Temporary construction materials leasing

Industrial Machinery Wholesale Business

Overview
Wholesale of industrial machinery for manufacturing sites and provision of related services.
Competitiveness
Wide product lineup and technical support
Customers
  • Manufacturers
  • Factory operators
  • Machinery maintenance companies
  • Equipment management companies
Products
  • Conveyor equipment
  • Inspection devices
  • Automation machinery parts

Overseas Sales and Support Business

Overview
Export, sales, and support of construction machinery mainly in Asia.
Competitiveness
Local networks and track record
Customers
  • Southeast Asian construction companies
  • Overseas infrastructure operators
  • Local agents
  • Importers and exporters
Products
  • Export sales of construction machinery
  • Related after-sales services

Environmentally Related Equipment Sales Business

Overview
Promotes sales of equipment for environmental conservation.
Competitiveness
Compliance with environmental regulations
Customers
  • Recycling companies
  • Public environmental agencies
  • Industrial waste management companies
Products
  • Recycled resource processing machinery
  • Environmental monitoring equipment

Competitive Advantage

Strengths

  • Local service network
  • Abundant track record in construction machinery rentals
  • Broad product range in industrial machinery wholesaling
  • Stable financial base
  • Experience in Asian market expansion
  • Unique marketing strategy
  • High-quality maintenance system
  • Diversified business portfolio
  • Collaboration with group companies
  • Strong ties with regional financial institutions

Competitive Advantages

  • Regional advantage based in Fukuoka
  • Integration of rentals and sales of diverse machinery
  • Sales network spanning Asian countries
  • Early response to environmentally related equipment
  • High customer awareness from original advertising strategy
  • Service enhancement through subsidiary collaboration
  • Fine-tuned response to customer needs
  • Uniqueness in handling both construction and industrial machinery
  • Comprehensive after-sales service
  • Robust overseas business foundation with local agent network

Threats

  • Risk of fluctuations in domestic construction demand
  • Impact of exchange rate fluctuations from overseas expansion
  • Intensifying price competition from rivals
  • Impact from expansion of used construction machinery market
  • Impact on rental business from stricter regulations
  • Decline in maintenance quality due to labor shortages
  • Loss of competitiveness if lagging in technological innovation
  • Increased compliance costs from changing environmental regulations

Innovations

2023: Establishment of Vietnam subsidiary

Overview
Established a local corporation to strengthen sales and rental systems for full-scale entry into the Southeast Asian market.
Impact
Contributes to overseas sales growth and successful new market development

2022: Introduction of IT management system for construction machinery rentals

Overview
Deployed a system company-wide for real-time management of rental machinery operations.
Impact
20% improvement in operational efficiency and enhanced customer satisfaction

2021: Expansion of environmentally friendly industrial machinery

Overview
Promoted introduction of energy-saving industrial machinery to comply with environmental regulations.
Impact
Meets customer environmental demands and expands market share

2020: Launch of new construction machinery brand

Overview
Began rollout of in-house brand construction machinery product line to differentiate.
Impact
Increased sales from improved brand recognition

Sustainability

  • Promotion of energy-saving equipment introduction
  • Support for development of low-environmental-impact products
  • Participation in local environmental conservation activities
  • Employee environmental awareness programs
  • Promotion of recycling and waste reduction