■Business Overview
1. Key business segments
Konishi ＜4956＞ is developing businesses in the 3 segments of “bonds,” “chemical products,” and “construction business,” and others. The sales ratio for the fiscal year ending 2024/3 is 53.9% for bonds, 29.6% for chemical products, 16.4% for construction businesses, and 0.1% for others. The ratio of operating profit (before company-wide elimination) is 64.2% for bonds, 12.8% for chemical products, 21.8% for construction businesses, and 1.2% for others. The reason why the profit ratio of chemical products is low is because the same business is a trading company business that carries out purchase and sale, while the bond and construction businesses carry out manufacturing, sales, engineering, etc. in-house. In the fiscal year ending 2024/3, the ratio of “others” increased due to an increase in rental income associated with the acquisition of the head office building.
(1) Bonds
Bonds mainly manufactures and sells various adhesives, sealants, wax/double-sided tape, etc. for general household use, housing/building materials, and industrial materials both domestically and internationally. The number of items has risen to over 3,000 items with only products bearing the “Bond” brand, and the product lineup in the industry is outstanding in Japan. Furthermore, the subsidiary Sunrise mainly manufactures and sells construction sealants for detached houses and automotive sealants/adhesives. Another subsidiary, Wall Bond Industrial Co., Ltd., manufactures and sells wallpaper adhesives.
(2) Chemical products
In chemical products, we purchase and sell petrochemicals, synthetic resins, industrial chemicals in general, and electronic functional materials, and our main business is a trading company-like business. Recently, we have been promoting the development of our own products and expanding the products we handle, etc., and are working on measures that make use of the strengths of the trading company's routes.
(3) Construction business
It is a construction contract business handled by the subsidiaries Bond Engineering Co., Ltd., Konishi Construction Co., Ltd., Kinki Reinforced Concrete Co., Ltd., Kadomaru Construction Co., Ltd., and Chushin Construction Co., Ltd. The construction contract business mainly undertakes repair/repair/reinforcement work for roads, railways, tunnels, bridges, etc. ordered from government offices, railway companies, road authorities, etc. In the case of the company, it is characteristic that it specializes in repair, repair, and reinforcement work that makes use of its know-how and experience as an adhesive manufacturer.
(4) Others
The other is the real estate leasing business. Previously, both sales and profits were minimal, but both income and profit increased with the acquisition of the head office building.
2. Market share and competitors
For synthetic adhesives, which are the main products, the market share based on production volume is estimated to be at a level of over 10%, and there has been a slight upward trend in the past few years. Also, it is estimated that the market share is 12 to 13% (excluding construction sealants) on a monetary basis, and it is the top in the domestic market in terms of both quantity and price.
The main competitors are Cemedine Co., Ltd. for general household use, Aika Kogyo (4206), and Oshika Co., Ltd. for housing-related use. It competes with Sunstar Giken Co., Ltd. and Sika Hamatite Co., Ltd. in construction sealants. For construction and civil engineering, it competes with SHO-BOND MATERIAL CO., LTD. (formerly SHO-BOND CHEMICAL CO., LTD.) when it comes to adhesives, but at actual construction sites, the subsidiary Bond Engineering is competing with SHO-BOND CONSTRUCTION CO., LTD. Also, major competitors include Resonac Holdings (4004), Henkel Japan Co., Ltd., and Osika for factory production. Also, it competes with Cemedine and ThreeBond Co., Ltd. for the production of electronics products, but when expanding to double-sided tape, Nitto Denko (6988) and 3M Japan Co., Ltd. can be cited as competitors.
3. Characteristics and strengths
The company's characteristics and strengths are summarized as follows.
(1) Brand power
The company's greatest strength is the overwhelming brand power of “Bonds.” From “bonds for woodwork” for general households to “bonds” for construction and industrial use, everyone knows the name “bond” regardless of age or gender.
(2) Product lineup and sales network
Another characteristic of the company is that it has a rich product lineup. Since we have a wide product lineup, demand also spans a wide range of civil engineering, construction, housing, automobiles, electronics, etc. Therefore, business performance is less likely to be influenced by specific industries or products, and the profit base as an enterprise is stable. This is also the company's strength.
(3) Strengths as an adhesive specialist
As mentioned above, many competitors excluding cemedine do not specialize in adhesives, and there are many chemical manufacturers. In other words, for competitors, adhesives are not their main business, but only one business. Compared to this, since the company is a manufacturer specializing in adhesives, trust from customers is strong. This is also a characteristic of the company, and it can be said that it is an advantage.
(Written by FISCO Visiting Analyst Noboru Terashima)