Consec

Basic Information

Stock Code
9895
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Hiroshima Prefecture
Establishment Year
November 1967
Listing Year
November 1990
Official Website
http://www.consec.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Other Companies
Daishin Chemical, TVE, Ono Ken, Kondo Tech, Advant Group, Hashimoto Sogyo Holdings, Takashima, Mitani Corporation, Yuasa Trading, Nice, Genex, JK Holdings, Jecos

Overview

Consec is a leading Hiroshima-based company founded in 1967, specializing in the manufacture of construction machinery and tools, as well as construction contracting services. It deploys its unique cutting technology and custom machinery, primarily in the Chinese market.

Current Situation

Consec achieved consolidated sales of approximately 10.4 billion yen and net profit of approximately 200 million yen in the fiscal year ending March 2024, maintaining solid performance through the manufacture and sale of construction diamond tools and special machinery. Leveraging its flagship 'Hakken' brand, it provides high-quality drilling and cutting equipment and is focusing on the construction specialty works sector. It is expanding its overseas business through entry into the Chinese market. It has pursued business selection and concentration through acquisitions and transfers of subsidiaries, engaged in the latest technology development, and launched eco-friendly diamond tools. It also emphasizes sustainability, striving for environmentally considerate product manufacturing and contributions to local communities. Going forward, it aims to enhance medium- to long-term corporate value with technological innovation in construction tools and expansion in domestic and international markets as its core strategies.

Trivia

Interesting Facts

  • Established in 1967 as Construction Service Co., Ltd.
  • Known in the construction tools industry for the 'Hakken' brand.
  • Multifaceted company also handling building demolition works.
  • Pioneer in the industry for early entry into the Chinese market.
  • Recently strengthened in custom manufacturing of specialty machinery.
  • Paid-in capital exceeds 4 billion yen, with a stable financial structure.
  • Classified under Nikkei's building materials, electrical equipment, and metal wholesalers.
  • Expands into care services and specialty works through subsidiaries.
  • In 2023, reorganized business portfolio using M&A.
  • Representative Director and President is Takiji Fukuda.

Hidden Connections

  • Strong capital ties with Nippon Kosen Co., Ltd. and history of collaboration in care services.
  • Strengthened local expansion by making China's Xiangjian Enterprise Co., Ltd. a subsidiary.
  • Specialty construction technology honed over many years in the construction tools industry is a unique strength.
  • Links business between local Hiroshima base, Chugoku region, and mainland China.
  • Advanced business reorganization by selling all shares of listed company Densan.
  • Maintains a wide distribution network through ties with construction materials and housing equipment wholesalers.
  • Involved in technical safety inspections within the construction industry, enhancing reliability.
  • Supports industry digitalization by promoting IoT utilization at construction sites.

Future Outlook

Growth Drivers

  • Increasing demand for construction machinery in China.
  • Growing needs for labor-saving and safety at construction sites.
  • Expansion of environmentally considerate tool products.
  • Stable demand related to specialty works.
  • Productivity improvement through IoT technology adoption.
  • Increasing demand for renovation and seismic retrofit businesses in construction.
  • Risk diversification through diversified overseas expansion.
  • Continuous investment in technological innovation.
  • Expansion of infrastructure development in Asia.
  • Recruitment and development of highly skilled personnel.

Strategic Goals

  • Aim for sales exceeding 15 billion yen.
  • Expand overseas sales ratio to over 30%.
  • Develop products aiming for zero environmental impact.
  • Establish leading position in construction specialty works.
  • Promote smart construction utilizing IoT.
  • Sustainable business development in collaboration with local communities.
  • Strengthen specialized technical education for employees.
  • Market development and product line diversification.
  • Continuous improvement in customer satisfaction.
  • Maintain financial soundness and stable dividend policy.

Business Segments

Construction Machinery Sales

Overview
Supplies a variety of machinery and tools to construction sites, promoting operational efficiency.
Competitiveness
Highly durable and customizable product lineup
Customers
  • Construction companies
  • Civil engineering contractors
  • Equipment leasing companies
  • Local contractors
  • Construction firms
Products
  • Drilling and cutting equipment
  • Hydraulic excavators
  • Vibratory hammers
  • Power tools
  • Pneumatic tools

Specialty Works Contracting Services

Overview
Deploys building demolition and reinforcement works domestically and internationally using specialized technology.
Competitiveness
Abundant track record in construction and robust safety management system
Customers
  • Demolition companies
  • General contractors
  • Local governments
  • Public entities
  • Real estate management companies
Products
  • Building demolition
  • Seismic retrofitting
  • Specialty construction
  • Bridge repair
  • Land regeneration work

Custom Machinery Design and Manufacturing

Overview
Provides machinery design and custom manufacturing services based on customer requirements.
Competitiveness
Flexible design response by specialized engineers
Customers
  • Factory equipment managers
  • R&D institutions
  • Machinery manufacturers
  • Construction machinery manufacturers
  • Industrial machinery repair companies
Products
  • Custom cutting machinery
  • Dedicated construction equipment
  • Prototype equipment
  • Machinery parts
  • Control systems

Diamond Tools Wholesale

Overview
Wholesales high-performance diamond tools through a wide range of distribution channels.
Competitiveness
Long-life and high-efficiency tool products
Customers
  • Tool retailers
  • Construction materials wholesalers
  • Industrial machinery trading companies
  • Construction contractors
  • Overseas agents
Products
  • Diamond wheels
  • Core bits
  • Grinding stones
  • Cemented carbide tools
  • Cutting consumables

Overseas Market Sales and Support

Overview
Focuses on the Chinese market for construction machinery and services deployment with local support.
Competitiveness
Market responsiveness through collaboration with local subsidiaries
Customers
  • Chinese construction companies
  • Overseas trading companies
  • Infrastructure development companies
  • Import/export agents
  • Overseas contractors
Products
  • Drilling and cutting equipment
  • Cutting tools
  • Specialty construction technology
  • Technical support
  • Maintenance services

Competitive Advantage

Strengths

  • High-quality diamond tool manufacturing technology
  • Track record and expertise in construction specialty works
  • Overseas expansion centered on China
  • Ability to meet diverse customer needs
  • Custom machinery development capabilities
  • Stable financial base
  • Strong sales and service network
  • Long years of industry experience
  • Abundant technical resources and R&D structure
  • High awareness of safety management
  • Business diversification applicable to multiple industries

Competitive Advantages

  • Superiority of proprietary cutting equipment 'Hakken' brand
  • Customer-oriented services through custom machinery design
  • Reliability from specialty works track record domestically and internationally
  • Strong local partnerships in the Chinese market
  • Market competitiveness of environmentally considerate diamond tools
  • Advanced fusion of safety and construction technology
  • Product deployment based on accurate market needs analysis
  • Rapid after-sales service system
  • Broad product lineup and customizability
  • Management stability as a competitive edge over rivals

Threats

  • Impact of construction industry economic fluctuations
  • Political and economic risks in overseas markets
  • Rising raw material cost pressures
  • Intensifying price competition from competitors
  • Decline in competitiveness due to delays in technological innovation
  • Business constraints from stricter construction industry regulations
  • Demand fluctuation risks due to social conditions
  • Profit pressure from exchange rate fluctuations
  • Emergence of new entrants
  • Construction delay risks from natural disasters

Innovations

2024: Development of Environmentally Considerate Diamond Tools

Overview
Developed diamond tools using new materials that reduce environmental impact compared to conventional products.
Impact
Contributes to improved environmental performance and market share expansion

2023: Launch of Large Electric Wire Saw Model

Overview
Commercialized a large electric wire saw with high output to improve cutting efficiency.
Impact
Contributes to productivity improvement in construction works

2022: Introduction of Construction Safety Management System

Overview
Introduced a safety management system for construction sites utilizing IoT technology.
Impact
Achieves reduction in accident risks and quality improvement

2021: Strengthened Technical Collaboration with Chinese Local Subsidiary

Overview
Accelerated product development for the Chinese market to meet local needs.
Impact
Increases overseas sales and expands market share

2020: Patent Acquisition for New Cutting Machinery

Overview
Obtained patent for high-efficiency and high-precision cutting technology.
Impact
Successfully differentiated from competitors

Sustainability

  • Promotion of material recycling to reduce environmental impact
  • Enhancement of energy-saving design in products
  • Setting and initiatives for factory CO2 emission reduction targets
  • Promotion of compliance with international safety and health standards
  • Environmental conservation activities through collaboration with local communities
  • Thorough waste reduction and proper disposal
  • Strengthening environmental standards in the supply chain
  • Expansion of environmental and safety education programs for employees
  • Formulation of sustainable resource procurement policies
  • Implementation of environmental impact assessments across product lifecycles