■Business Overview
1. Environmental equipment related business
The “environmental equipment related business” is the main business accounting for 49.2% of sales and 71.2% of operating profit before adjustment for the fiscal year ending 2023/12.
(1) Domestic business
Daiki Axis (4245) was established in 2005, and the development, design, manufacture, construction, sale, and maintenance of various wastewater treatment devices has been carried out for over half a century, counting from the Daiki era, such as completing the first FRP septic tank in 1964. In the same business, it is compatible with all tap water (groundwater drinking systems), reclaimed water (wastewater reuse systems), and sewage (household septic tanks, regional settlement wastewater treatment systems, industrial wastewater treatment facilities). The sales composition ratio of the “environmental equipment related business” for the fiscal year ending 2023/12 was 4.9% for the groundwater drinking business, 0.2% for reclaimed water systems, 6.2% for domestic small merger treatment septic tanks for sewage, 60.4% for wastewater treatment systems such as condominiums, food processing plants, hospitals, electric/plating processing plants, etc., and 28.3% for maintenance, etc.
The domestic business of “environmental equipment related business” covers major cities nationwide with 29 locations. Our manufacturing plants are located at 4 locations (Fukushima, Shinshu, Matsuyama, and Tsushima), and we are working to improve transportation efficiency by utilizing the network of our partner Daiei Sangyo Co., Ltd., for customers remote from our factory.
The characteristic of this business is that it has an integrated system relating to wastewater treatment facilities, making continuous contact with customers possible through maintenance work, leading to acceptance of orders for renovation/expansion work, and feeding back user needs collected at the site to research and development. As for maintenance, a system is in place so that the exclusive department can provide services tailored to customer needs, such as 24-hour monitoring and spot support.
The growth strategy is to strengthen the stock business, which serves as a stable source of income, and undertakes store septic tank equipment construction and maintenance, and store management operations (cleaning/firefighting/electrical inspection work, etc.) for DCM Group stores at the same root. Furthermore, batch orders for wastewater treatment equipment and septic tank maintenance at major convenience store chains, major restaurant chain stores, and central kitchens on a national scale have also expanded. For businesses (customers) that operate a large number of stores, management of legal inspections and inspection records of septic tanks, inspection records of wastewater treatment equipment, etc. becomes complicated work. Whereas conventional traders support individual services and are locally specialized, the company aims to differentiate itself not only by reducing costs but also by providing uniform services on a national scale.
The company, which undertakes these tasks as a maintenance business, has updated the legal inspection management system that responds to client needs by introducing a new IT system. The aggregation and aggregation of daily reports related to maintenance utilizing IT systems not only enhances the governance of chain headquarters, but also reduces the burden of office work. Using IT systems as a competitive advantage, they are advancing the capture of chain headquarters, and improving productivity and profitability by managing facilities, construction, and cooperating contractors based on data.
Demand for household merger treatment septic tanks is linked to the number of new housing starts, so although the domestic market is saturated, they have maintained market share and are following up with the latest technology for overseas expansion. Industrial wastewater treatment is divided into organic treatment and inorganic treatment. Biological treatment is applied in organic systems such as food processing plants, etc., and chemical treatment is applied in inorganic systems such as electric/plating processing plants.
(Written by FISCO Visiting Analyst Ikuo Shibata)