ENVALITH
日本パワーファスニング株式会社 logo

JAPAN POWER FASTENING CO.,LTD.

5950・Standard Market・Metal Products

Official website
日本パワーファスニング株式会社 logo
JAPAN POWER FASTENING CO.,LTD.5950

Business

Nippon Power Fastening Co., Ltd. is a single-segment specialist manufacturer whose core business is the manufacture and sale of fastening components (fasteners) and fastening tools (tools) for prefabricated houses and other residential applications as well as general construction and civil engineering use. Established in 1964 as a Japan-U.S. joint venture, the company has a history of developing licensed products through a technical assistance agreement with Illinois Tool Works Inc. (ITW) of the United States. Its major customers include leading housing manufacturers such as Sekisui House, as well as contractors and distributors in the general construction and civil engineering markets. Listed on the Standard Market of the Tokyo Stock Exchange, the company operates as a group that includes its consolidated subsidiary J.J. Tool Co., Ltd.

Business Model

The company combines integrated in-house manufacturing of fasteners such as screws at its own plants (Toyooka Plant, Shimodate Plant, etc.) with merchandise procurement from external sources to build out its product lineup. For FY2025 (ending December 2025), production output was ¥3,096 million (104.5% year on year), and merchandise procurement was ¥2,169 million (102.4% year on year). Sales are conducted along two axes—the housing market and the general construction market—and profitability is secured through a structure that combines sales price pass-through with cost reduction via plant consolidation.

Company Strengths

米国イリノイ・ツール・ワークス社（ITW社）との技術援助契約（2009年締結・3年ごと自動更新）により、コンクリート市場用・スチール市場用・ウッド市場用のライセンス製品および商標を活用した製品展開が可能。60年超の技術蓄積を背景に、主力製品「ドリルねじ」等で市場での地位を確立している。

Translation: Under a technical assistance agreement with Illinois Tool Works Inc. (ITW) of the United States (concluded in 2009, automatically renewed every three years), the company is able to develop products utilizing licensed products and trademarks for the concrete, steel, and wood markets. Backed by more than 60 years of accumulated technology, the company has established a strong market position with mainstay products such as "Drill Screws."

Sales to Sekisui House, Ltd. amounted to ¥1,345 million (FY ended December 2025), accounting for 26.6% of total sales performance. The ongoing business relationship with a major prefabricated housing manufacturer forms a stable sales foundation, with sales to the housing market totaling ¥2,209 million, or approximately 43.6% of the overall total.

For the concrete substrate market, the company has established design evaluation formulas for screw-type anchors through joint industry-academia research and is strengthening spec-in activities. Sales performance in the concrete substrate market for FY2025 was ¥255 million (109.8% year on year). In the decking market as well, the company continues activities aimed at obtaining voluntary certification from a technical evaluation institution (scheduled for mid-April 2026).

ENVALITH's Perspective

The operating loss for 1Q FY2026 (ending December 2026) was ¥40 million (compared to a loss of ¥51 million in the same period of the previous year), showing an improving trend, but achieving the full-year operating profit forecast of ¥100 million requires generating over ¥140 million in profit over the remaining three quarters. 1Q results fell short of the initial plan, warranting a cautious view on the certainty of achieving the full-year forecast.

As an external factor, the declining trend in new housing starts has continued, and the environment in the construction and housing industry, the company's main sales market, remains challenging. Elevated prices of construction materials such as steel, as well as rising labor costs and labor shortages, continue to act as industry-wide headwinds. Through price pass-through efforts, gross profit was maintained at roughly the same level as the prior-year period (¥256 million), but net sales continued to decline, down 3.0% year on year to ¥1,139 million.

The improvement in the ordinary loss for 1Q FY2026 (ending December 2026) to ¥38 million (compared to a loss of ¥68 million in the same period of the previous year) was aided by an increase in non-operating income, including foreign exchange gains of ¥3 million (non-operating income rose from ¥3 million in the same period of the previous year to ¥10 million in the current period). The improvement in the core operating loss (narrowing of the loss) can be evaluated as a result of price pass-through and cost reduction efforts, but further reductions in selling, general and administrative expenses and a recovery in sales are essential for a sustained return to profitability.

Growth Strategy

Three pillars under the medium-term management plan "Next Challenge 2027": expansion of applications, production rationalization, and price pass-through

Continuing to pass through rising material costs and labor costs to sales prices. In the first quarter of FY2026 (ending December 2026), gross profit of ¥256 million was secured (roughly in line with ¥255 million in the same period of the previous year), with the pass-through effect contributing to the maintenance of the gross profit margin.

Promoting fixed cost reduction and logistics efficiency improvement through consolidation of factory production. SG&A expenses decreased by ¥10 million year on year to ¥297 million, with the reduction effect continuing and contributing to a narrowing of the operating loss.

Promoting new application development in markets such as the concrete substrate market and deck market, spec-in activities, and new customer development. Aiming to expand sales to the general construction and civil engineering markets to offset the structural contraction of the housing market, but first-quarter sales decreased 3.0% year on year, and the results have not yet become apparent.

Last updated: July 17, 2026