■Business Overview
1. Business content
The business details of Mimaki Engineering ＜6638＞ are segmented not only by product but also by sales market. There are three segments by sales market: the SG market, which supports the production of advertisements and signs, etc., the IP market, which decorates industrial products and small items for general consumers, and the TA market, which prints and dyes fabrics and ready-made clothing. Since there are many final products directly connected to consumers' lives, such as printed materials, signs, smartphone cases, electrical appliances, and clothing, products that make use of the company's technology are surprisingly familiar. The company quickly grasps the needs of each market and quickly provides new products through targeted development. Meanwhile, since the product replacement cycle in the SG, IP, and TA markets is generally 4 to 5 years, it is a profit structure where sales can be accumulated for each fiscal year by introducing new products in order to each market.
Digitalization is progressing in industrial printing, and there are genres with a high digitalization rate, such as display graphics such as signboards, etc., but there are still many genres that mainly focus on conventional analog printing, such as textiles, furniture/interior, package labels, etc., which have large markets. Therefore, the overall digitalization rate of industrial printing is so low that it is said to be 5 to 10% on average, and the growth potential of industrial inkjet printers is extremely large. Also, there is plenty of room for expansion due to the introduction of FA. The rivals are American manufacturers and domestic manufacturers around printers. It seems that Chinese manufacturers also produce industrial inkjet printers, but since there is little industrial data, there are many relatively small manufacturers, and the quality of ink is low, it seems that they are omitted when calculating market share. Under such circumstances, the company's sales for the IP and TA markets are rapidly expanding. The background is that digital on-demand printing with high added value has spread in response to the growing demand for multi-product and small-lot production in the industry at production sites where analog printing with low added value was the mainstream in the past. For this reason, the IP market and TA market are growing significantly as the second and third pillars along with the SG market.
(1) SG (sign graphics) market
In the SG market, printing is carried out on advertising signs, window graphics, car wrapping, soft signs, etc. using printed materials such as PVC sheets, banner sheets, window films, etc. The company is ranked 2nd in the global market (27.2% market share in 2022) for large format inkjet printers up to 160 cm. Also, in a field where digitalization is relatively progressing, the three major companies, including the company, occupy a market share of about 80%.
(2) IP (Industrial Products) Market
In the IP market, taking advantage of the characteristics of UV curing inks that can be printed on a wide variety of materials such as plastic, acrylic, glass, metal, and wood, it is used to print small items such as smartphone cases, toys, and novelties in addition to industrial products such as automobile instrument panels and operation panels for home appliances. In 2010, when the market price of the product was over 10 million yen, an overwhelmingly low price product of 3.3 million yen was launched, which triggered the company's market share to expand. As a result, it is ranked No. 1 in the global market for desktop UV flatbeds (63.9% market share in 2022). UV curing inks are easy to demonstrate the strengths of digitalization regardless of material, so other companies are also working on them, but knowledge in the chemical field that has been accumulated over 20 years since commercialization has become a major differentiating factor in their ability to respond to market needs.
(3) TA (textile/apparel) market
In the TA market, it is used to print fabrics (textiles) and ready-made clothing fabrics before sewing, such as polyester, rayon, cotton, silk, etc., targeting fashion apparel, sports apparel, sneakers (upper material), interiors, fabrics, etc. The company developed the world's fastest sublimation transfer inkjet printer in 2012 (according to the company's research at the time), and growth accelerated when it was adopted by global fashion brands. Currently, it is a sublimation inkjet printer that saves space and can realize a clean work environment at a low cost, and is ranked 2nd in the global market (19.4% market share in 2022).
(4) Other businesses
In addition to industrial inkjet printers and cutting plotters, the company is developing a 3D printer business and FA business. In the 3D printer business, we manufacture product designs, figures, and products for three-dimensional signboards using 3D printers, from full-color modeling with 10 million colors or more to super-large modeling up to 1.8 meters high. In the FA business, we are contributing to the automation of production processes such as loading in, printing, coating, and loadout with on-demand digital coating machines based on vector technology and mechatronics technology.
(5) Opportunities in the IP and TA markets
Until now, mass production has been the mainstream at production sites in the IP and TA markets, but demand for multi-product and small-lot production is increasing due to diversification of needs and shortening of product cycles. Digital on-demand production using the company's products does not use a printing plate, and since only what is necessary can be printed when necessary, multi-product, small-lot production can be realized with short delivery times and low cost. Furthermore, in digital on-demand production, added value such as individuality, originality, and seasonality can be easily added to products to achieve differentiation and high profitability. Furthermore, since a clean work environment can be secured with space-saving equipment, production is possible around cities close to consumption areas, and time and costs required for logistics can also be reduced. The company has an advantage in terms of productivity and environmental responsiveness of such digital printing, but it is not limited to specific markets such as IP and TA, and it is regarded as an advantage that can be demonstrated throughout the industry.
(Written by FISCO Visiting Analyst Miyata Hitomitsu)