NOZAWA CORPORATION
5237・Standard Market・Glass & Ceramics Products
Business
Nozawa Corporation, founded in 1897, is a specialist manufacturer of nonflammable building materials that operates a Construction Materials Business (Single Segment) as a group including two consolidated subsidiaries. Its core product is "Asrock Neo" (Extruded Cement Panel), an exterior wall material for general buildings, and the company also handles Lightweight Exterior Wall Materials for Housing, High Sound-Insulation Flooring Materials for Housing, slate boards, and fireproof coating materials, among others. In addition to manufacturing and selling products, the company provides an integrated service covering design, construction, and supervision. Its major customers are homebuilders and construction companies, led by Sekisui House, Ltd. (35.8% of sales composition), and production is carried out at two plants: the Saitama Plant and the Banshu Plant.
Business Model
The company earns revenue through two pillars: product sales and construction contracting. Products are manufactured at its own factories, with sales and construction also handled through its subsidiary Nozawa Shoji. While expanding sales of high-value-added products such as "Asrock factory-painted products" and "factory pre-processing," which contribute to shortening construction periods, the company aims to improve unit prices, while also curbing manufacturing costs through NNPS (Nozawa New Production System) improvement activities. The company maintains debt-free management with zero borrowings, and capital expenditures are financed mainly through its own funds.
Company Strengths
Net sales to Sekisui House Ltd. were ¥7,988 million in the current period (up ¥790 million year on year), reaching 35.8% of consolidated net sales. This stable demand base, built on many years of transaction history, has driven the 19.1% year-on-year growth in Lightweight Exterior Wall Materials for Housing.
The company continuously implements NNPS (Nozawa New Production System) improvement activities. In the current period, in response to rising raw material and energy prices (a ¥200 million year-on-year increase in manufacturing costs), it limited the cost increase to ¥60 million through reduced usage volumes. The company has a unique production management system that achieves both productivity improvement/cost reduction and flexible response to changes in production volume.
As of the end of the current consolidated fiscal year, outstanding borrowings were zero. Against total assets of ¥30,450 million, net assets stood at ¥21,930 million (equity ratio of approximately 72%), indicating high financial soundness. The company has entered into a commitment line agreement totaling ¥2,000 million with its partner financial institutions, securing fundraising capacity in the event of emergencies.
ENVALITH's Perspective
Performance Trend
Net sales came to ¥22,313 million (up 1.6% year on year), returning to growth after one year of decline. Operating profit of ¥1,994 million (up 18.7%) and ordinary profit of ¥2,167 million (up 17.8%) improved significantly on the back of higher sales and reduced SG&A expenses (down ¥119 million year on year), lifting the operating profit margin to 8.9% (from 7.7% in the previous fiscal year). However, the recording of extraordinary losses of ¥1,557 million (litigation losses of ¥1,125 million, impairment losses of ¥271 million, and inventory valuation losses of ¥91 million) held pre-tax profit to just ¥715 million, and net profit fell sharply to ¥605 million (down 47.7% year on year). In terms of the external environment, a year-on-year decline in construction floor area started and supply constraints from labor shortages pushed down volumes of the mainstay Asrock (Extruded Cement Panel), while growth in Lightweight Exterior Wall Materials for Housing (up 19.1% year on year) and construction revenue helped offset this. Operating cash flow came to ¥236 million (versus ¥431 million in the previous fiscal year), significantly affected by the payment of ¥1,369 million in damages.
Growth Strategy
Aiming for PBR above 1x and returns exceeding capital cost under the medium-term management plan "NOZAWA NEXT3"
Developing new products themed around disaster response, comfortable living environments, environmental preservation, and labor shortage resolution. During the fiscal year under review, the company launched "Shell-in Oyster," an interior slate board utilizing oyster shells, achieving both waste reduction and design differentiation. The company will continue product development focused on uniqueness and competitive advantage.
Aiming to increase value-added by expanding sales of "factory-painted Asrock (Extruded Cement Panel)" products, which contribute to shortening construction periods and resolving labor shortages, and by promoting the adoption of "factory pre-processing." The company will develop "Millefia," a new construction method (multi-color on-site finish coating), as a coating construction business of its subsidiary Nozawa Shoji, opening up new markets.
Strengthening productivity and customer service capabilities through advancing sales support tools, automating factory product inspection processes, and systematizing administrative work. The company will strengthen employee engagement and the foundation for securing human resources through base salary increases, restricted stock allotments, and renewal of the recruitment page.
Based on the "Response Toward Realizing Management Conscious of Capital Cost and Stock Price" announced on May 15, 2026, the company has set management targets of achieving capital profitability exceeding the shareholders' cost of capital and a PBR of 1x or above. The financial base is solid, with an equity ratio of 72.0% and a market-value-based equity ratio of 48.0% (significantly improved from 32.8% in the previous fiscal year).
Last updated: July 19, 2026