Nisshin Shoji

Basic Information

Stock Code
7490
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
February 1950
Listing Year
March 1996
Official Website
https://www.nissin-shoji.co.jp/
TSE Information
TSE Information
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Overview

Nisshin Shoji is a wholesaler established in 1950, strong in sales of ENEOS petroleum products, and an energy trading company advancing diversification.

Current Situation

Nisshin Shoji recorded consolidated sales of approximately 62 billion yen and net profit of approximately 223 million yen in 2020, building a stable revenue base. In addition to its mainstay petroleum product sales, it is expanding into renewable energy businesses, dining, and real estate, promoting diversification. It operates gas stations and wholesales mainly in Kanto, Tokai, and Kinki regions, and also exports to Southeast Asia. Technologically, it has entered solar power generation and biomass power generation, pursuing an environmentally considerate business model. Since 2020, it has collaborated with multiple major companies and universities on research and donation activities for sustainable biomass technology. In the future, it aims to strengthen its dining business and expand in the Southeast Asian market, positioning sustainability at the center of its management strategy. The company's financial position is solid, with a well-established audit system, providing a sufficient foundation for future growth.

Trivia

Interesting Facts

  • Founded in 1947, with over 70 years of history in the petroleum-related industry
  • ENEOS Group member with head office in Shibaura, Minato-ku, Tokyo
  • Previously operated Akasaka Shin Sushi Honten but withdrew in 2004
  • One of the few companies handling petroleum product exports to Southeast Asia
  • Collaborating with University of Tokyo Graduate School's biomass endowed course
  • Over 10 years of track record in renewable energy business
  • Operates affiliated gas stations in Kanto, Tokai, and Kinki
  • Dining business as franchisee for KFC and Tully's
  • History of expansion through repeated M&A
  • Major shareholders include ENEOS Holdings and Sumitomo Mitsui Banking Corporation
  • Strong in petroleum product wholesale but actively diversifying
  • Has local subsidiary in Malaysia and promoting Southeast Asia expansion
  • Capital of 3.6 billion yen, mid-sized capital structure
  • Consolidated scale with approx. 435 employees
  • Stable financial base with net assets of approx. 17.6 billion yen in FY2020

Hidden Connections

  • Deep capital ties with ENEOS Holdings, strengthening fuel supply network within the group.
  • Serves as franchisee for KFC Japan and Tully's Coffee, holding unique ties with the dining industry.
  • Established endowed course at University of Tokyo Graduate School research institution, promoting industry-academia collaboration.
  • Proficient in business expansion overseas, especially in Southeast Asia, providing fuel supply and materials sales tailored to local market needs.
  • Diversifying business risks of the parent through subsidiaries like Nisshin Resin Co., Ltd.
  • Major domestic financial institutions such as Japan Master Trust Bank are shareholders, indicating strong financial credibility.
  • Utilizes part of assets for real estate leasing to stabilize revenues, practicing diversification of internal management resources.
  • Has history of temporarily shifting to ceramics and art craft sales business, but currently centered on petroleum products.

Future Outlook

Growth Drivers

  • Expansion of renewable energy demand
  • Maintained petroleum product demand in Southeast Asia market
  • Further growth and multi-store expansion in dining business
  • Expansion and technological innovation in agricultural-related business
  • Stable revenue securing in real estate leasing business
  • Formation of sustainable fuel supply network
  • Business efficiency and customer service improvement through IoT introduction
  • Response to improved social responsibility investment (ESG) evaluations
  • Business area expansion through M&A
  • Flexible response to domestic and international energy policies
  • Adaptation to strengthened environmental regulations
  • Brand value enhancement and customer trust strengthening

Strategic Goals

  • Double renewable energy business sales from current levels
  • Expansion of sales network in Southeast Asia market
  • 50% increase in number of dining business stores
  • Clear setting and achievement of CO2 reduction targets
  • Strengthening lineup of sustainable agricultural materials
  • Maximizing business efficiency through DX promotion
  • Ongoing expansion of regional social contribution activities
  • Realization of revenue diversification through asset management
  • Introduction of environmental education programs for all employees
  • Acquisition of numerous environmental certifications and green business recognitions

Business Segments

Petroleum Products Wholesale

Overview
Handles supply of petroleum products to affiliated stores and wholesale of industrial fuels.
Competitiveness
Strong collaboration with ENEOS Group
Customers
  • Affiliated Gas Stations
  • Small and Medium Factories/Manufacturers
  • Transportation Companies
  • Agricultural Corporations
  • Local Governments
Products
  • Gasoline
  • Diesel
  • Heavy Oil
  • LP Gas
  • Lubricants

Renewable Energy Business

Overview
Provides clean energy production and related services.
Competitiveness
Know-how in regionally rooted power plant operations
Customers
  • Local Governments
  • Private Companies
  • Public Facilities
  • Agri-Industry Related Companies
Products
  • Solar Power Generation
  • Biomass Power Generation
  • Related Equipment Installation
  • Maintenance Services

Dining Franchise Operations

Overview
Provides services through operation of dining chain stores.
Competitiveness
Experience in regionally rooted store operations
Customers
  • KFC Japan
  • Tully's Coffee
  • General Consumers
Products
  • Fried Chicken Varieties
  • Coffee and Beverages
  • Light Meals

Agricultural Materials Sales

Overview
Engages in wholesale and retail of agricultural-related materials.
Competitiveness
Extensive regional network
Customers
  • Farmers
  • Agricultural Corporations
  • Agricultural Materials Retailers
Products
  • Fertilizers
  • Pesticides
  • Agricultural Machinery Fuel

Real Estate Leasing Management

Overview
Provides real estate leasing services mainly in Minato-ku.
Competitiveness
Track record in long-term asset management
Customers
  • Corporate Tenants
  • Logistics Companies
  • Small and Medium Enterprises
Products
  • Office Leasing
  • Warehouse Leasing

Export Business

Overview
Exports petroleum-related products to the Southeast Asian market.
Competitiveness
Track record and network in overseas markets
Customers
  • Southeast Asia Petroleum Product Sales Companies
  • Processors
Products
  • Petroleum Products
  • Petrochemical Products

Competitive Advantage

Strengths

  • Strengthened ties with ENEOS Group
  • Extensive regional network
  • Stable revenue base through diversification
  • Advanced renewable energy business
  • Track record in dining chain operations
  • Experience in Southeast Asia exports
  • Solid financial position
  • Established audit system
  • Ongoing technology research collaborations
  • Long years of industry experience
  • Diverse business portfolio
  • Regionally rooted sales organization
  • Stable client relationships
  • Established brand power
  • Promotion of environmentally considerate businesses

Competitive Advantages

  • Capital ties and technological cooperation with ENEOS Holdings
  • Early investments and technological accumulation in renewable energy
  • Market coverage through diverse sales channels
  • Regionally rooted operational strength in dining franchise business
  • Differentiation through early entry into overseas markets like Southeast Asia
  • Strengthened academic collaborations via donations to biomass and shore endowed courses
  • Market share expansion in industrial fuel wholesale
  • Risk diversification and business stability through multi-business management
  • High customer service and responsiveness
  • Strength in agricultural materials sales through ties with local agriculture
  • Stable gas station operation network
  • Brand recognition as a comprehensive energy company

Threats

  • Market fluctuation risks in oil prices
  • Impacts from changes in renewable energy policies
  • Intense domestic and international competition
  • Political and economic risks in overseas markets
  • Business constraints from strengthened environmental regulations
  • Impacts on mainstay business from declining fuel demand
  • Intensified competition from new entrants
  • Profit pressure from rising logistics costs
  • Operational disruption risks from natural disasters
  • Export revenue instability from exchange rate fluctuations
  • Concerns over labor shortages
  • Decline in competitiveness from delays in technological innovation

Innovations

2020: Nisshin Suwa Solar Power Plant Begins Operations

Overview
Commercial operation start of large-scale solar power plant in Suwa City, Nagano Prefecture.
Impact
Increased renewable energy ratio

2021: Collaboration in Establishing Biomass-Shore Endowed Course

Overview
Participation in establishing an endowed course at the University of Tokyo Graduate School of Agricultural and Life Sciences.
Impact
Promotion of biomass research and strengthened industry collaborations

2022: Expansion of Palm Old Tree Fuel Business

Overview
Utilizing Malaysian palm old trees as fuel and furniture raw materials.
Impact
Waste reduction and new business creation

2023: DX Promotion in Dining Business

Overview
Efficiency improvement in store operations and enhanced customer service through IT technology introduction.
Impact
Reduced operating costs and improved customer satisfaction

2024: Strengthening LP Gas Supply Network

Overview
Building efficient supply system through introduction of latest delivery system.
Impact
Shortened delivery times and improved customer response

Sustainability

  • Expansion of renewable energy business
  • Promotion of biomass fuel utilization
  • Waste recycling and reduction
  • Environmental conservation activities in collaboration with local communities
  • Technological investments to reduce environmental impact
  • Promotion of sustainable resource procurement
  • Implementation of environmental education and awareness activities
  • Setting and monitoring of long-term environmental goals
  • Ongoing efforts to reduce CO2 emissions
  • Promotion of green energy certifications
  • Introduction of energy-saving equipment
  • Employee environmental awareness enhancement activities