Nichiha

Basic Information

Stock Code
7943
Industry
Glass and Ceramics Products
Category Detail
Construction Materials & Equipment
Prefecture
Aichi Prefecture
Establishment Year
June 1956
Listing Year
December 1989
Official Website
https://www.nichiha.co.jp/
TSE Information
TSE Information
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Other Companies
Kamishima Kagaku Kogyo, Maruo Cal, Danto Holdings, Nippon Insulation, Shinto, Tsuruya, Kunimine Kogyo, A&E Material, Nichias, Bunka Shiyata, Toami

Overview

Nichiha is a leading manufacturer of ceramic-based exterior materials for housing founded in 1956. As the industry leader, it provides high-quality building materials and maintains strong ties with the Mitsui Group.

Current Situation

Nichiha achieved consolidated sales of 123.7 billion yen, operating profit of 13.1 billion yen, and net profit of 10.8 billion yen in the fiscal year ending March 2020, maintaining a stable financial base. It has established its position as the top player in the ceramic siding materials sector, its mainstay, and also engages in housing equipment sales. Supported by the Mitsui Group including Sumitomo Mitsui Banking Corporation, it is advancing the integration of affiliates and the expansion of showrooms. In technology, it focuses on developing fire-resistant subflooring and exterior decorative components, possessing a unique lineup of high-quality products. It is also committed to sustainability, promoting initiatives to reduce environmental impact. As a medium- to long-term growth strategy, it aims to expand market share domestically and internationally and enhance the functionality of building materials. In recent years, it has been improving management efficiency and technological innovation while actively investing in new materials and applications.

Trivia

Interesting Facts

  • Holds top domestic share in ceramic siding materials
  • Formerly a subsidiary of Nakamura Plywood, manufacturing fiberboards
  • One of the few companies with headquarters in Sumitomo Mitsui Bank's head office building
  • Made a joint venture with Sumitomo Metal Industries a wholly owned subsidiary for business expansion
  • Absorbed and merged Mitsui Wood Industries' siding business
  • Focusing on diversifying exterior material designs to expand customer base
  • Achieved listing switch from Nagoya Stock Exchange to Tokyo Stock Exchange Prime
  • Built nationwide sales network through multiple affiliates
  • Many key subsidiaries specialize in manufacturing and sales of exterior wall materials
  • Capital of over 8.1 billion yen, large-scale in the building materials industry
  • Many affiliates specialize in architectural services and processing
  • Japan Trustee Services Bank is one of the largest shareholders
  • Strengthened capital and business ties with major players like Mitsui & Co. and Sumitomo Forestry
  • Holds high technological achievements in fire-resistant subflooring
  • Main office and headquarters functions dispersed within Nagoya City

Hidden Connections

  • Receives capital support from Sumitomo Mitsui Bank, strengthening business collaboration with group companies
  • Inherited business from former Nakamura Plywood, securing unique position in building materials industry
  • Joint venture with Sumitomo Metal Industries promoted technological advancement in metal-based materials
  • Sumitomo Forestry as a major shareholder, strong linkage with housing construction sector
  • Affiliate Nichiha Matex inherited exterior materials business from Mitsui Wood Industries
  • Many exterior wall products customized to contractors' needs
  • Company building located in Sumitomo Mitsui Bank Nagoya Building, symbolizing intra-group collaboration
  • In addition to competition with peers, experience overcoming plywood recession deepens industry expertise

Future Outlook

Growth Drivers

  • Increased building materials demand from expanding housing renovation market
  • Rising needs for sustainability-compliant products
  • Global market expansion in collaboration with Mitsui Group
  • Technological innovation in high-function and design-oriented building materials
  • Increased demand for newly certified materials due to Building Standards Act revisions
  • Improved production and sales efficiency through DX utilization
  • Market shift to fire-resistant and energy-saving functional building materials
  • Growing housing modification demand due to aging society
  • New product development for environmentally conscious younger generation
  • Expansion of housing markets in emerging overseas countries
  • Open innovation with partner companies
  • Promotion of eco-friendly building materials through regulations and tax incentives

Strategic Goals

  • Expand ceramic exterior materials market share domestically and internationally
  • Elevate building materials' environmental performance to industry-leading standards
  • Create business synergies through strengthened Mitsui Group collaboration
  • Achieve company-wide operational efficiency via digital technology
  • Expand product lineup for new markets
  • Increase R&D investment in fire-resistant and energy-saving building materials
  • Promote environmental impact reduction and recycling rate improvements
  • Contribute to sustainable community development through co-creation with local society
  • Expand workforce diversity and enrich young talent development programs
  • Aim for 15% sales growth by fiscal 2030

Business Segments

Residential Building Materials Manufacturing

Overview
Segment stably supplying diverse high-performance building materials for residential construction to meet on-site needs.
Competitiveness
High product quality and stable supply capabilities backed by the Mitsui Group
Customers
  • Building Materials Trading Firms
  • Detached House Manufacturers
  • Renovation Contractors
  • Local Builders
  • House Builders
  • Design Offices
  • General Contractors
  • Housing Equipment Companies
  • Exterior Finishing Contractors
  • Local Material Stores
  • Construction Consultants
  • Manufacturers
Products
  • Ceramic-Based Siding Materials
  • Roofing Materials
  • Exterior Decorative Components
  • Fire-Resistant Subflooring
  • Eave Materials
  • Fireproof Building Materials
  • Architectural Insulation Materials
  • Pre-Processed Building Components
  • Construction Accessories
  • Adhesives and Repair Materials
  • Soundproof Building Materials
  • Durability-Enhanced Building Materials

Sales to Trading Companies and Distributors

Overview
Segment providing building materials to wholesalers and distributors, supporting a wide sales network.
Competitiveness
Nationwide trading company network and Mitsui Group collaboration
Customers
  • Major Building Materials Trading Firms
  • Regional Sales Agents
  • Specialty Architectural Material Stores
  • Logistics Companies
  • Construction Management Firms
  • Overseas Agents
  • Building Materials E-commerce Operators
  • Sales Promotion Companies
  • Housing Equipment Consultants
  • Exporters
  • Architectural Design Support Companies
  • Construction Contracting Firms
Products
  • Residential Exterior Material Sets
  • Processed Building Materials
  • Delivery and Distribution Services
  • Sales Promotion Tools
  • Technical Support Services
  • Energy-Saving Building Materials
  • Eco-Friendly Building Materials
  • Inventory Management Services
  • Construction Training Materials
  • Exhibition and Showroom Supplies
  • Overseas Product Lines

Processing and Component Supply

Overview
Provides high-functionality products to processors and equipment manufacturers through building material processing and component supply.
Competitiveness
Advanced processing technology and quality control systems
Customers
  • Building Materials Processors
  • Equipment Manufacturers
  • Housing Equipment Companies
  • Architectural Material Manufacturers
  • Renovation Companies
  • Design and Construction Firms
  • Exterior Finishing Contractors
  • Architectural Materials Research Institutions
  • Fire-Resistant Product Developers
  • Soundproofing and Insulation Manufacturers
  • Local Builders
  • Suppliers
Products
  • Pre-Processed Fiberboards
  • Fire-Resistant Components
  • Special Building Material Parts
  • Architectural Adhesives
  • Building Material Repair Products
  • Insulation Boards
  • Durability-Enhanced Materials
  • Eco-Friendly Raw Materials
  • Dedicated Tools and Parts
  • Custom Processing Services

Overseas Business

Overview
Primarily in Asia and North America, deploys building material provision and sales support tailored to local needs.
Competitiveness
Local responsiveness and Mitsui Group's international network
Customers
  • Overseas Building Materials Trading Firms
  • Export Agents
  • Overseas Contractors
  • Building Materials Sales Agents
  • Overseas Renovation Contractors
  • Architectural Design Offices
  • Local Construction Companies
  • Overseas Housing Manufacturers
  • Overseas Construction Management Firms
  • Logistics Providers
  • Overseas Exhibition Organizers
  • Environmental Certification Bodies
Products
  • Residential Exterior Wall Materials
  • Roofing Materials
  • Decorative Components
  • Fire-Resistant Building Materials
  • Eave Materials
  • Eco-Friendly Materials
  • Locally Adapted Products
  • Customized Building Materials
  • Construction Support
  • Quality Management Services

Competitive Advantage

Strengths

  • Industry-leading ceramic exterior materials manufacturer
  • High technological capabilities and product quality
  • Strong capital and business ties with the Mitsui Group
  • Diverse building materials lineup
  • Sales network built through trading companies
  • Stable financial base
  • Brand recognition and reputation domestically and internationally
  • Abundant processing technologies and subsidiary utilization

Competitive Advantages

  • Largest market share in ceramic siding materials
  • Business stability supported by Sumitomo Mitsui Bank
  • Business expansion leveraging a wide group of affiliates
  • Product lineup excelling in fire resistance and design
  • Strong sales collaboration with major domestic building materials trading firms
  • New materials and products created through R&D capabilities
  • Enhanced customer experience through showroom expansion
  • Aggressive overseas market expansion and local responsiveness

Threats

  • Risk of non-compliance due to Building Standards Act revisions
  • Impact from industry downturns such as plywood recession
  • Competitors' technological innovations and price competition
  • Fluctuations in raw material prices
  • Increased burden from stricter environmental regulations
  • Risk of declining housing starts
  • Overseas business impact from exchange rate fluctuations
  • Destabilization of construction demand due to natural disasters

Innovations

2023: New Development of High-Performance Fire-Resistant Subflooring

Overview
Launched subflooring with 30% improved fire resistance compared to conventional products.
Impact
Contributes to market share expansion and enhanced safety

2022: Introduction of Eco-Friendly Siding Materials

Overview
Began rollout of exterior wall material series using recycled raw materials.
Impact
Establishes competitive edge in sustainable building materials market

2021: Promotion of Digitalization for Business Efficiency

Overview
Utilizes AI and IoT in production and sales processes to improve efficiency.
Impact
Achieves cost reductions and shorter delivery times

2024: Launch of New Design Exterior Wall Material Series

Overview
Introduced proprietary design exterior wall materials responding to diversifying housing market.
Impact
Improves appeal to younger demographics

2020: Strengthened Funding via Sumitomo Mitsui Bank Collaboration

Overview
Established stable funding framework leveraging group ties.
Impact
Strengthens foundation for business expansion

Sustainability

  • Expansion of recycled raw material utilization
  • Introduction of energy-saving manufacturing processes
  • Reform of packaging to reduce environmental impact
  • Participation in local cleanup activities and tree-planting campaigns
  • Implementation of environmental education programs within the company
  • Employee environmental awareness training
  • Environmental audits of supply chain
  • Waste reduction through improved product durability
  • Maintenance of ISO 14001 environmental management certification
  • Development of products enhanced for natural disaster resistance
  • Setting internal carbon neutrality targets
  • Setting environmental performance standards exceeding Building Standards Act