Torque

Basic Information

Stock Code
8077
Industry
Wholesale Industry
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
June 1941
Listing Year
October 1961
Official Website
https://www.kobayashi-metals.co.jp/
TSE Information
TSE Information
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Overview

Torque is a long-established trading company in the metal tools wholesale industry, centered on construction bolts and nuts, founded in 1941, leveraging its nationwide sales network and specialized technology as key strengths.

Current Situation

Torque recorded consolidated net sales of approximately 19.3 billion yen and ordinary income of approximately 400 million yen in the fiscal year ending October 2021, maintaining a stable earnings base. Its mainstay products are tools centered on construction bolts and nuts, utilizing multiple subsidiaries such as Chusei Machinery and Kovacs to expand sales of civil engineering and construction materials nationwide. In recent years, it has focused on strengthening sales channels and improving production efficiency to respond to diversifying customer needs. In line with market consolidation, it transitioned to the Tokyo Stock Exchange Standard Market and is working to strengthen its financial base. In 2020, it changed its company name from Kobayashi Sangyo to Torque and is promoting brand reconstruction. It also considers sustainability, expanding environmentally friendly products and collaborating with local communities. Going forward, it aims for stable growth by enhancing its expertise in metal wholesaling.

Trivia

Interesting Facts

  • Founded in 1926, over 90 years of history as a long-established trading company.
  • Changed company name from Kobayashi Sangyo to Torque in 2020.
  • Highly regarded in the industry as a specialist trading company focused on construction bolts and nuts.
  • Built international sales routes including exports to Asia.
  • Nationwide sales network for Japanese construction sites is top-class in the industry.
  • Subsidiary Kovacs specializes in concrete products and special materials.
  • Handles diverse construction materials to meet wide-ranging customer needs.
  • Actively promoting sales and logistics efficiency using IT technology in recent years.
  • Plays an important role in material supply amid labor shortages in the construction industry.
  • Early adopter in promoting eco-friendly materials.
  • Maintains stable financial structure exceeding industry average.
  • Focuses on community contributions centered in local Osaka.
  • Conducts rivet and screw (byōra) museum-like exhibitions in some locations.
  • Introduced proprietary systems for product traceability management.
  • Numerous in-house holders of specialized construction material engineer qualifications.

Hidden Connections

  • Maintains close capital and business ties with major shareholder Hamanaka Nut Co., Ltd.
  • Strengthens competitiveness in architectural hardware field through collaboration with Okabe Co., Ltd.
  • Rooted in Osaka while having a sales base in Shanghai for overseas expansion.
  • Synergistic effects between concrete and metal businesses via subsidiaries.
  • Advancing joint development of eco-friendly products in anticipation of stricter environmental regulations in construction.
  • Strong ties with local contractors and major general contractors in nationwide construction material sales.
  • Builds solid customer base with dual wheels of building material distribution and machinery parts supply.
  • Specialized small and medium-sized sales subsidiaries complement regionally focused sales power.

Future Outlook

Growth Drivers

  • Increasing demand for equipment renewal in construction industry
  • Expansion of eco-friendly building materials market
  • Activation of civil engineering and infrastructure development projects
  • Promotion of sales and logistics efficiency via IT utilization
  • Demand expansion from increased local public works
  • Demand for related supplies due to heightened safety awareness at construction sites
  • Expansion of sales channels and export strengthening in overseas markets
  • Special demand accompanying increase in large-scale construction projects
  • New product development responding to customer needs
  • Service improvement through strengthened group company collaboration
  • Technical investments for enhanced market competitiveness
  • Strengthened compliance with standards in safety and environmental fields

Strategic Goals

  • Expand annual net sales to over 25 billion yen
  • Raise ratio of environmentally friendly products to over 50%
  • Accelerate IT investments for productivity improvement
  • Further strengthen domestic and international sales networks
  • Maintain safety management and quality assurance systems at cutting-edge levels
  • Become a leading company in construction materials field
  • Strengthen business development contributing to sustainable society
  • Promote product diversification through adoption of new technologies
  • Expand CSR activities deepening ties with local communities
  • Maximize synergy through group collaboration to enhance business value

Business Segments

Construction Materials Wholesale

Overview
Specialized wholesale of materials necessary for building and civil engineering works, ensuring stable supply.
Competitiveness
Nationwide sales network and specialized product knowledge
Customers
  • Construction Companies
  • General Contractors
  • Local Contractors
  • Public Works Related Companies
Products
  • Bolts and Nuts
  • Concrete Materials
  • Building Materials and Housing Equipment
  • Tools
  • Safety Supplies

Machinery and Metal Products Wholesale

Overview
Provides wholesale of high-performance metal parts for industrial machinery and technical support.
Competitiveness
Long track record of transactions and diverse product lineup
Customers
  • Machinery Manufacturers
  • Factories
  • Industrial Machinery Maintenance Companies
Products
  • Precision Machinery Parts
  • Steel Plates
  • Machinery Metal Parts
  • Hydraulic Parts

Sales Subsidiary Operations

Overview
Supports distribution and service expansion of special products using subsidiaries.
Competitiveness
Synergy effects across the group
Customers
  • Building Material Trading Companies
  • Regional Sales Companies
Products
  • Concrete Products
  • Special Construction Materials
  • Specialized Tools

Technical Support and Inspection Services

Overview
Service business providing technical support for product quality and construction safety.
Competitiveness
On-site support by specialized engineers
Customers
  • General Contractors
  • Government Agencies
  • Industrial Facilities
Products
  • Quality Management Services
  • Product Inspections
  • Construction Support

Logistics and Supply Management

Overview
Improves customer business efficiency with efficient logistics and supply management systems.
Competitiveness
Integration of IT systems and expertise
Customers
  • Construction Material Distributors
  • Manufacturers
Products
  • Logistics Management Systems
  • Supply Chain Optimization

Eco-Friendly Materials Sales

Overview
Supply business for building materials and resources contributing to reduced environmental impact.
Competitiveness
Focus on sustainable product development
Customers
  • Public Works
  • Environmental Conservation Groups
  • Construction Companies
Products
  • Environmentally Considerate Building Materials
  • Recycled Materials

Maintenance and Repair Parts Supply

Overview
Wholesale supply of parts for maintenance and repair of machinery and equipment.
Competitiveness
Rapid procurement network
Customers
  • Construction Machinery Maintenance Companies
  • Machinery Dealers
Products
  • Replacement Parts
  • Repair Materials

OEM Procurement Agency

Overview
Deploys procurement and material sourcing agency services for OEM.
Competitiveness
Flexible response tailored to customer needs
Customers
  • Machinery Manufacturers
  • Construction Equipment Manufacturers
Products
  • Custom Metal Parts
  • Special Screws

Overseas Imported Materials Sales

Overview
Supports introduction and sales expansion of overseas procured materials.
Competitiveness
Collaboration with local corporations and import expertise
Customers
  • Domestic Building Material Companies
  • Manufacturers
Products
  • Imported Bolts and Nuts
  • Overseas Tools

IT Solutions Provision

Overview
IT solutions provision business for building materials wholesalers.
Competitiveness
System design leveraging industry expertise
Customers
  • Construction Industry Customers
  • Distributors
Products
  • Inventory Management Systems
  • Order Management Systems

Safety Education and Training Services

Overview
Conducts safety education and product training for customer employees.
Competitiveness
Practical curriculum based on industry knowledge
Customers
  • Construction Companies
  • General Contractors
  • Local Contractors
Products
  • Safe Construction Training
  • Product Handling Education

Construction Waste Recycling Business

Overview
Environmental contribution business through collection and resource recovery of construction waste.
Competitiveness
Establishment of circular business model
Customers
  • Public Works
  • Construction Companies
Products
  • Waste Collection
  • Material Reuse Services

Competitive Advantage

Strengths

  • Sales network covering the entire country
  • Technical expertise specialized in construction bolts and nuts
  • Product expansion through diverse subsidiaries
  • Stable customer base and long-term transaction record
  • Abundant product lineup
  • Reliable quality control system
  • Responsive to flexible customer needs
  • Solid financial foundation
  • Trust within the industry as a specialist trading company
  • Regionally focused sales deployment
  • Experience backed by long history
  • Adaptability to changing market environments
  • Deep understanding of construction sites
  • High-specialty technical support
  • Synergy through group collaboration

Competitive Advantages

  • Strong wholesale capabilities for specialized construction materials
  • Wide product lineup offering many customer choices
  • Rapid supply via nationwide network including exclusive subsidiaries
  • Provision of eco-friendly materials and construction support services
  • Stable revenue from trusted long-term customers
  • Coverage of diverse business fields
  • Domestic and international material procurement and logistics capabilities
  • Detailed customer service through technical sales
  • Flexible and ongoing product development support
  • Response to industry trends and standard changes
  • Sense of security through thorough safety and quality management
  • Placement of engineers with various qualifications
  • Market expansion strategy in collaboration with sales subsidiaries
  • Credibility from Tokyo Stock Exchange Standard Market listing
  • Investment capacity from stable financial base

Threats

  • Risk of economic fluctuations in construction investment
  • Price fluctuation pressure on construction materials
  • Intensifying price competition from competitors
  • Risk of material shortages and logistics delays
  • Increased compliance costs from stricter environmental regulations
  • Potential demand decline due to labor shortages in construction industry
  • Impact of exchange rate fluctuations on imported material costs
  • Emergence of new entrants and online sales
  • Supply chain disruptions from natural disasters
  • Sudden changes in laws and safety standards
  • Changes in demand structure due to social environmental shifts
  • Delays in responding to diversifying market needs

Innovations

2023: Expansion of Environmentally Friendly Building Materials

Overview
Expanded product line of low-environmental-impact building materials with sustainability in mind.
Impact
Contributes to customer base expansion and differentiation.

2022: Sales and Logistics Efficiency via IT Systems

Overview
Introduced latest order management and logistics systems to improve business efficiency.
Impact
Reduced order processing time by 30%, decreased delivery delays.

2021: Development of High-Durability Bolt Products

Overview
Successfully developed construction bolts using rust-resistant alloy materials.
Impact
Acquired new large-scale projects through improved weather resistance.

2020: Brand Name Change to 'Torque'

Overview
Refreshed brand strategy accompanying company name change, aiming to raise awareness of the representative brand.
Impact
Contributes to improved market evaluation and strengthened sales force.

Sustainability

  • Development and sales promotion of environmentally friendly building materials
  • Group-wide efforts to reduce CO2 emissions
  • CSR activities emphasizing coexistence with local communities
  • Waste reduction and recycling promotion
  • Thorough employee safety and health management
  • Strict sustainable resource procurement
  • Introduction of energy-saving office equipment
  • Enhanced technical education for safe construction
  • Strengthened environmental considerations across the supply chain
  • Introduction of long-term environmental risk management
  • Support projects for waste reduction at construction sites
  • Realization of diversity management through promotion of women's active roles