Nihon Precision
Basic Information
- Stock Code
- 7771
- Industry
- Precision Instruments
- Category Detail
- Consumer Electronics
- Prefecture
- Saitama Prefecture
- Establishment Year
- August 1978
- Listing Year
- September 1997
- Official Website
- http://www.nihon-s.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Banners, Atra Group, TB Group, Casio Computer, Citizen Watch, Rhythm, Seiko Group
Overview
Nihon Precision is a precision instruments manufacturer founded in 1978, primarily engaged in the manufacturing and sales of watch bands and eyeglass frames, with production bases in Vietnam. It is a mid-sized company in the industry.
Current Situation
Nihon Precision recorded consolidated net sales of approximately 6.9 billion yen and operating profit of approximately 180 million yen for the fiscal year ended March 2023, maintaining a stable revenue base. Its main products are watch bands and eyeglass frames, providing high-quality precision parts to domestic and international watch manufacturers and eyewear brands. It has established efficient production systems with overseas bases in Vietnam. In 2007, a hostile M&A by a Korean company was successful, and it now operates under a multinational management structure. In recent years, it has focused on developing watch bands using premium materials and diversifying eyeglass frames, expanding its product lineup. It also considers sustainability by promoting material recycling and introducing technologies to reduce environmental impact. Looking ahead, it aims for growth through expanding market share overseas and new product development. Key challenges include technological competition with competitors and应对 to foreign exchange fluctuations.
Trivia
Interesting Facts
- Pioneering company in introducing advanced ceramic materials in watch band industry
- Noted as a successful example of hostile M&A by Korean company
- Deploys synthetic leather processing business through Korean subsidiary
- Pioneered use of high-strength titanium in eyeglass frame manufacturing
- Built large production base in Vietnam and continues factory expansion
- Entered electronic lock parts market in some businesses
- Supplying overseas luxury watch manufacturers since 1990s
- Successfully diversified by applying precision press technology to fishing gear parts
- Established multinational management base through M&A integration
- Focused on product differentiation through high-function material utilization
Hidden Connections
- Acquisition by Korean company M&FC was Japan's first hostile M&A case for a listed company
- Subsidiary Murai plays a key role in Fukui Prefecture's eyewear industry
- Affiliation with Mitsui & Co. subsidiary brings diversity to group management
- Products supplied to major watch manufacturers like Casio and Citizen
- Strengthened sales cooperation in Asian countries through Korean capital partner Jienco
- Cloud-based order management system contributes to domestic and international transaction expansion
- Environmentally friendly manufacturing is part of strategy anticipating domestic and international regulations
- Promotes product development through crossover between eyewear and watch industries
Future Outlook
Growth Drivers
- Increasing demand accompanying global growth in luxury watch market
- Competitive edge from shift to environmentally friendly materials
- Expansion of manufacturing bases overseas and cost optimization
- Diversification of custom and OEM product development
- Efficiency improvement in order and production management through digitalization
- Strengthening R&D for high-value-added products
- Expansion of sales network centered on Asian markets
- Enhanced corporate value through sustainability certifications
- Creation of new products by fusing eyeglass frames and watch parts
- Smart product development utilizing IoT technology
Strategic Goals
- Achieve net sales of 10 billion yen
- Expand overseas sales ratio to over 50%
- Sustainable certified products to 60% or more
- Achieve carbon neutrality in production processes
- Reduce environmental impact across entire product lifecycle
- Market launch of innovative materials and processing technologies
- Build customization system responding to diverse customer needs
- Full introduction of digital production management
- Increase ratio of electronic device parts as new business
- Expand education programs for technician training and talent acquisition
Business Segments
Parts Manufacturing for Watch Manufacturers
- Overview
- Supplies high-precision, diverse watch parts to domestic and international watch manufacturers.
- Competitiveness
- Processing technology for special materials and multi-variety対応 capability
- Customers
-
- Domestic watch manufacturers
- Overseas luxury watch brands
- OEM manufacturers
- Repair service providers
- Distributors
- Products
-
- Metal watch bands
- Ceramic watch parts
- Luxury watch decorative parts
- Special alloy frames
- Custom-made products
Manufacturing Services for Eyewear Industry
- Overview
- Provides design, manufacturing, and customization services for eyeglass frames.
- Competitiveness
- Adoption of high-function materials and environmentally friendly technologies
- Customers
-
- Eyewear brands
- Sunglasses manufacturers
- Lens processors
- Retailers
- OEM companies
- Products
-
- Titanium eyeglass frames
- Lightweight frame parts
- Surface treatment processing
- Custom design frames
- Metal parts for lenses
Sports Equipment and Fishing Gear Parts Manufacturing
- Overview
- Manufactures durable metal parts for sports and fishing gear.
- Competitiveness
- Precision press technology and diverse material対応
- Customers
-
- Sports equipment manufacturers
- Fishing gear manufacturers
- Specialty retailers
- Outdoor brands
- OEM partners
- Products
-
- Pressed parts
- Impact-resistant frames
- Functional fittings
- Accessory parts
- Original parts
Electronic Device Parts Manufacturing
- Overview
- Manufactures various parts for electronic locks and provides technical support.
- Competitiveness
- High-reliability parts manufacturing technology
- Customers
-
- Electronic lock manufacturers
- Security equipment sellers
- Industrial equipment maintenance
- System integrators
- OEM manufacturing contractors
- Products
-
- Keypad electronic lock parts
- Electronic control parts
- High-precision processed parts
- Custom metal frames
- Electronic device assembly
OEM and Custom Product Development
- Overview
- Develops and mass-produces made-to-order products according to customer needs.
- Competitiveness
- Flexible design対応 and rapid production system
- Customers
-
- Fashion brands
- Accessory manufacturers
- Industrial product manufacturers
- Distributors
- Promotional product manufacturers
- Products
-
- Custom watch bands
- Original eyeglass frames
- Made-to-order accessories
- Custom decorative items
- Limited model parts
Competitive Advantage
Strengths
- Superior precision processing technology
- Expertise in utilizing diverse high-function materials
- Cost competitiveness from Vietnam production base
- Long-standing industry track record and trust
- Transaction experience with overseas luxury brands
- Risk diversification through multi-product expansion
- Proprietary surface treatment technology
- High customization capability
- Extensive experience and skills of technicians
- Introduction of environmentally friendly manufacturing processes
- Global expansion capability through multinational management
- Robust quality control system
- Stable financial base
- Broad product portfolio
- Collaboration among group companies including local subsidiaries
Competitive Advantages
- Differentiation through high-precision processing using precision molds
- Capability to process rare materials for luxury watches
- Dedicated production line for lightweight titanium frames for eyewear
- Cost optimization through active overseas production
- Enhanced competitiveness via business diversification through M&A
- Fast product development based on material R&D
- High-level customization対応 to customer requests
- Sustainable manufacturing with reduced environmental impact
- Diverse product range applicable to multiple industries
- Stable management supported by solid financial base
- Improved customer satisfaction through high-standard quality control
- Continuous investment in new materials and technological innovation
- Technology succession system focused on talent development
- Established position in mature markets
- Acquisition and maintenance of international quality standards
Threats
- Risk of profit deterioration due to foreign exchange fluctuations
- Market share erosion from competitors' technological innovations
- Rising raw material prices
- Cost increases due to strengthened environmental regulations
- Declining domestic demand from Japan's population decrease
- Political and social risks at overseas production bases
- Intensified price competition from new entrants
- Supply chain disruptions from pandemics, etc.
- Aging workforce and talent shortage among technicians
- Increased tariff burdens from international trade friction
- Delays in new product development using IT technology
- Delayed response to rapid changes in consumer preferences
Innovations
2023: Development of High-Durability Carbon Band
- Overview
- Developed watch band using lightweight and highly durable carbon material.
- Impact
- Successfully acquired new customers in the luxury watch market
2022: Introduction of Environmentally Friendly Surface Treatment Technology
- Overview
- Adopted ion plating technology that significantly reduces environmental impact.
- Impact
- 30% reduction in environmental impact of manufacturing processes
2021: Enhanced Automation of Vietnam Production Line
- Overview
- Introduced latest robot equipment to advance automation for improved manufacturing efficiency.
- Impact
- 15% improvement in production efficiency and quality stabilization
2024: Trial Production Start of New Titanium Alloy Material
- Overview
- Began trial manufacturing of new alloy lighter and stronger than conventional ones.
- Impact
- Strengthened foundation for high-value-added product development
2020: Introduction of Digital Customer Request Management System
- Overview
- Introduced cloud system enabling rapid reflection of customer requests.
- Impact
- 20% reduction in order lead time
2023: Development of High-Precision Processing Technology for Fishing Gear Pressed Parts
- Overview
- Applied industry-leading precision press technology to significantly improve quality.
- Impact
- Improved product reliability in fishing gear market
2024: Expansion of Eco Material Adoption for Eyeglass Frames
- Overview
- Launched new product series using recyclable materials.
- Impact
- Enhanced competitiveness in sustainable market
2022: Enhancement of Scratch-Resistant Ceramic Bands for Luxury Watches
- Overview
- Announced product with improved surface strength using proprietary technology.
- Impact
- Increased orders from luxury brands
2021: Establishment of New Mass Production System for Electronic Lock Parts
- Overview
- Expanded production system for home and business electronic lock parts.
- Impact
- Expanded client base and increased sales
2020: Introduction of IT-Based Quality Control Enhancement System
- Overview
- Reduced defect rate using AI-powered product inspection system.
- Impact
- Achieved quality improvement and cost reduction
Sustainability
- Promotion of waste recycling in manufacturing processes
- Expansion of environmentally friendly water-based paints
- Strengthening environmental protection activities at Vietnam factory
- Promotion of energy-efficient equipment introduction
- Review of raw materials to reduce environmental impact