■Performance trends of Konishi ＜4956＞

2. Segment Status for the Fiscal Year Ending 2024/3

(1) Bonds

Segment sales were 71,627 million yen (up 3.9% from the previous fiscal year), and operating profit was 6,609 million yen (up 45.7% from the same period). Growth was sluggish on a quantitative basis due to a slump in the main housing sector, but price increases from the latter half of the first fiscal year penetrated, and profit increased drastically while sales increased slightly. The status of each sub-segment is as follows.

a) General household-related sales: 6,569 million yen (up 6.6% from the previous fiscal year)

The market for home centers and convenience stores remained steady.

b) Housing-related: Net sales 22,155 million yen (up 3.2% year on year)

Sales increased due to improved sales prices of adhesives for interior construction and interior building materials.

c) Industrial materials-related: net sales 8,680 million yen (up 5.1% from the same period)

The main products we handle for industrial materials include aqueous emulsion adhesives for paper tube and bag making applications, urethane adhesives for panel applications, adhesives, sealants and release agents for automotive-related industries, and industrial hot melt adhesives. Paper processing was sluggish, but sales for automobiles and electronic electronics were strong, including new acquisitions.

d) Tape: Net sales of 3,556 million yen (up 4.6% year on year)

Conventionally, it was included in industrial materials-related matters, but since sales increased steadily, it was cut out as a new sub-segment from the fiscal year ending 2019/3. The current fiscal year saw a steady trend in the industrial sector.

e) Construction-related: Net sales of 14,158 million yen (up 5.9% from the same period)

From the 2022/3 fiscal year, it was reorganized from a “construction business (formerly civil engineering construction business)” until then to a “bond.” Construction sealants progressed smoothly during the current fiscal year.

f) Civil engineering-related: net sales of 2,480 million yen (down 2.5% from the same period)

Similar to those for construction, it was reorganized from a “construction business (former civil engineering construction business)” from the fiscal year ending 2022/3 until then to a “bond.” There were no large-scale projects of surface protection materials used to prevent peeling of concrete, etc., and the number declined. Meanwhile, sealants for civil engineering performed well.

g) Sunrise (consolidated subsidiary): Net sales 9,628 million yen (up 3.1% from the same period)

Highly weather-resistant sealants for housing-related use have progressed smoothly. Also, vehicle-related products were doing well.

h) Wall Bond Industries (consolidated subsidiary): Net sales of 3,108 million yen (up 12.9% from the same period)

Since the main product is wallpaper adhesives, 100% are housing-related. Sales increased due to the effects of price increases for wall adhesives that had been delayed.

(Written by FISCO Visiting Analyst Noboru Terashima)