ENVALITH
日創グループ株式会社 logo

NISSO PRONITY Co.,Ltd.

3440・Standard Market・Metal Products

Official website
日創グループ株式会社 logo
NISSO PRONITY Co.,Ltd.3440

Business

Nissoken Group Co., Ltd. is a Fukuoka-originated manufacturing group that transitioned to a holding company structure in June 2025. Its core operations span four reportable segments: Metal Processing (Solar Cell Array Support Frame, Metal Sandwich Panel, etc.), Chemical Products (Seismic-Resistant Sewer Manhole Joint, Waterstop Tape, Resin Products for Vehicles, etc.), Construction (Interior & Exterior Panel Construction, Solar Power Facility Construction), and Tile (Wet-Process Tile and Dry-Process Tile), alongside wood processing, e-commerce sales, and web services. The group comprises 13 consolidated subsidiaries, 3 non-consolidated subsidiaries, and 2 affiliated companies, serving a broad customer base across construction, energy, infrastructure, housing, and transportation equipment industries. Since 2016, the company has continued to expand its business domains through active M&A.

Business Model

Each operating company handles everything from product planning and design to manufacturing, sales, and construction in an integrated manner, generating vertical integration synergies through intra-group internal transactions (inter-segment sales elimination of ¥1,201 million). The holding company oversees group-wide sales strategy, manufacturing cost reduction, and M&A promotion, accelerating profit contribution through PMI (post-merger integration) of acquired operating companies. The structure combines external growth utilizing the M&A investment framework of ¥5.0 billion (under the 4th Medium-Term Management Plan) with internal growth through a ¥1.0 billion advance investment framework.

Company Strengths

The company has continuously executed M&A, starting with the acquisition of Aguma Rubber Industry Co., Ltd. in 2016, followed by Nittai Kogyo, Watanabe Technos, and Tenjin Seisakusho in 2023, Taiho and Formtex in 2024, and Izumi Seisakusho in 2025. Net sales expanded approximately 3.1x from ¥7,535 million in FY2021 to ¥23,037 million in FY2025, with M&A functioning as a key growth driver.

Net sales of the Construction Business surged 108.5% year-on-year to ¥6,796 million, with segment profit up 177.2% year-on-year to ¥753 million. Sales to Obayashi Corporation reached ¥3,168 million (13.8% of consolidated sales), and the trading relationship with a major general contractor supports the stability of the earnings base.

The Metal Processing Business continues to build up its order backlog, which stood at ¥3,160 million (up 14.2% year-on-year), with orders received of ¥8,395 million (up 8.3% year-on-year). Segment profit of ¥1,097 million represents a profit margin of approximately 13.7% against external customer sales of ¥8,002 million, maintaining a high level and making it the Group's largest source of earnings.

ENVALITH's Perspective

Cumulative sales for the third quarter were ¥15,476 million (down 15.3% year on year), operating profit was ¥514 million (down 63.7%), and quarterly net income attributable to owners of the parent was ¥158 million (down 85.5%), representing a substantial decline in profit. The main cause was the direct impact of the reaction to the concentration of large-scale projects in the previous period, with Construction Business sales of ¥1,864 million (down 69.0% year on year) and segment profit of ¥45 million (down 93.6%). The full-year earnings forecast has already been revised to sales of ¥20,500 million (down 11.0% year on year) and operating profit of ¥300 million (down 78.3%), and the scope for recovery in the fourth quarter alone appears limited.

With the acquisition of B SLASH HOLDINGS and other factors, total assets expanded to ¥36,272 million (up ¥9,323 million from the end of the previous fiscal year), while net assets remained at ¥12,603 million (down ¥45 million), causing the equity ratio to fall sharply from 46.9% to 34.7%. Interest-bearing debt has surged, with short-term borrowings of ¥8,171 million (up ¥4,021 million from the end of the previous fiscal year) and long-term borrowings of ¥8,017 million (up ¥3,168 million), and interest expenses have also expanded to ¥95 million (up 79.2% year on year). Attention should be paid to the risk of further increases in financial leverage as the M&A strategy continues.

The segment loss in the Lifestyle Business widened to ¥136 million (compared with a loss of ¥66 million in the same quarter of the previous year). In addition to the external headwind of a nationwide decline in housing demand, upfront investment associated with the launch of the New Business (Kanaete Co., Ltd.) has compounded the situation. Since the deemed acquisition date for B SLASH HOLDINGS is set as May 31, 2026, it has not been reflected in the profit and loss for the third quarter under review, leaving the scale and direction of its profit contribution from the fourth quarter onward unclear. Real estate for sale of ¥1,499 million and real estate for sale in process of ¥2,937 million have been newly recorded, and attention should also be paid to the management of real estate inventory risk.

Growth Strategy

Aiming for medium-term growth by expanding the business portfolio through a ¥5.0 billion M&A investment framework and holding company structure

Utilizing a ¥5.0 billion M&A investment framework, the company is incorporating businesses in adjacent domains such as metal, chemical products, and lifestyle. In FY2026 (ending August 2026), B SLASH HOLDINGS (condominium development, sales & renovation) was made a subsidiary, expanding the Lifestyle Business. Meanwhile, Dairitsu Corporation was divested for ¥1,800 million, reflecting active portfolio rebalancing.

As the deemed acquisition date for B SLASH HOLDINGS is May 31, 2026, its profit and loss contribution begins from the fourth quarter onward. Kanaete Co., Ltd. remains in the upfront investment phase of its new business launch, advancing efforts to raise brand awareness, acquire customers, and build a sales foundation. The order backlog for the Lifestyle Business has grown to ¥1,339 million (up 75.2% year on year), laying the groundwork for future monetization.

Against the backdrop of strong performance in data center related projects, the order backlog has grown to ¥2,154 million (up 12.2% year on year). Demand diversification is being pursued to offset the decline in Solar Cell Array Support Frame and Metal Sandwich Panel. The company continues to promote order intake through intra-group collaboration and reduce manufacturing costs.

The rapid increase in sales scale (up 88.8% year on year) driven by the consolidation of Taiho Corporation and Izumi Seisakusho Co., Ltd. is becoming firmly established. The order base has also expanded, with orders received of ¥3,725 million (up 104.2% year on year) and an order backlog of ¥382 million (up 84.9% year on year). While capturing stable demand for products such as the Seismic-Resistant Sewer Manhole Joint driven by infrastructure seismic resilience needs, the company aims for further business expansion through additional M&A.

In June 2026, all shares of Dairitsu Corporation (manufacturer of dampers for air conditioning) were transferred to Kuken Kogyo Co., Ltd. for ¥1,800 million. This forms part of a reconsideration of the business portfolio with a view to the Group's future further development, and the proceeds from the sale are expected to be used to replenish the M&A investment framework and maintain financial soundness. The gain or loss on the transfer has not yet been finalized.

Last updated: July 17, 2026