FISCO reviewed DAIKI AXIS’s diversified environmental businesses, centered on its domestic and overseas water infrastructure operations, and covered the current status of its Housing Equipment Sales & Distribution and Building & Equipment Construction businesses, as well as related M&A and new product initiatives.
The company’s business overview describes its policy of developing a diversified portfolio of environmental businesses in Japan and overseas, centered on water infrastructure, and explains the changes to its business classifications. It revised the previous classification and reclassified its operations into Housing Equipment Sales & Distribution and Building & Equipment Construction.
The Housing Equipment Sales & Distribution business sells water-related housing equipment, including system kitchens, toilets and unit bathrooms, to general contractors serving as prime contractors, local construction companies and housebuilders. It also supplies group companies of DCM Holdings. Although margins are low because the business is wholesale-oriented, the company is passing on higher costs through price increases.
The Building & Equipment Construction business handles exterior wall and flooring work leveraging its tile and stonework expertise, as well as the design and construction of agricultural greenhouses and air-conditioning and ventilation systems. In recent years, it has added companies specializing in air-conditioning, refrigeration and cold-storage equipment to the Group through M&A, and is strengthening proposals for wooden water tanks and the environmental pile construction method as environmentally conscious products. It is also strengthening its operating structure for its wood-structure business, which covers the entire process in-house.
Overall, the company is emphasizing efforts to develop new products that meet changing needs and increase added value and competitiveness by strengthening its manufacturing capabilities.