[Company analysis] Daiwa House Industry Co., Ltd. (大和ハウス工業)

「Daiwa House Industry Co., Ltd. (大和ハウス工業)」is a general housing construction company who headquartered in Osaka. This company started prefabricated houses business for the first time in Japan. They are also engaged in various businesses, such as rental housing, condominiums, commercial facilities, and general construction, mainly related housing business.  In the housing indurstry for individuals, 「Haseko Corporation (長谷工コーポレーション)」,「Sekisui House, Ltd. (積水ハウス)」are their competitors. The number of consolidated employees is about 62,000.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Daiwa House Industry Co., Ltd.
Company name (Japanese)	大和ハウス工業
Date of establishment	Tuesday, March 4, 1947
Headquarters location	〒530-8241 大阪府大阪市北区梅田三丁目3番
Capital	161,699
Consolidated sales	4,143,505
Consolidated operating profit	372,195
Consolidated total assets	4,334,037
Consolidated capital	1,643,717
Capital adequacy ratio	37.9%
Consolidated number of employees	45,000

 

 

 

2. Summary and Features

 
The founder of 「Daiwa House Industry Co., Ltd. 」is Nobuo Ishibashi(石橋信夫) who had been captured as a prisoner during the World War II and taken to a concentration camp in Siberia, Russia. From this severe experience in the extremely cold area, he recognized the importance of "housing" among the three elements of "clothing, food, and housing". To promoting "sturdy house that can be quickly constructed at any time", he started a housing construction business.

As a result, Daiwa House Industry released Japan's first prefabricated house in 1959, and has been developing construction businesses such as condominiums, apartments, resorts, business hotels, golf courses, mainly steel-framed houses and wooden houses. In particular, 「Daiwa House Industry Co., Ltd. 」has supplied 1.5 million houses and 36,000 commercial facilities until today and got the reputation of being Japan's leading construction company.

In the housing business for individuals, they compete with 「Sekisui House(積水ハウス)」、「Haseko Corporation(長谷工コーポレーション)」. In the overseas business field, this company have already begun operations in China since 1972. Daiwa House Industry have been developing overseas business for more than 30 years, mainly in rental housing for foreign expatriates, joint development with local companies, and hotel business.

Recently, however, there was a problem of non-compliance with building standards. It is said that there were construction failures in more than 3,900 single-family homes and rental homes nationwide built by「Daiwa House Industry Co., Ltd. 」 in 2019. As a result, the stock price of Daiwa House Industry plunged on April 15, 2019.

 

 

 

3. Major Business

 

■ Housing business
In 1959, Daiwa House Industry released Midget House. At the time, in addition to door-to-door sales, which had been the conventional sales method, this company attracted attention due to its innovative marketing. Their model houses were exhibited in 27 department stores throughout Japan, and gained enormous popularity. For about half a century since then,「Daiwa House Industry Co., Ltd. 」have been developing the steel-frame and wooden detached house construction business while building up their house building technology and know-how.

■ Rental housing business
The rental housing brand "D-room" is being rolled out nationwide.  This company have supplied about 1.04 million rental homes.

■ Distribution store business
Utilizing the nationwide information network of "Daiwa House Industry" and utilizing the "LOC system",「Daiwa House Industry Co., Ltd. 」can provide integrates land information and store opening information. In addition, they perform total production from building design and construction.

■ Building business
Since its foundation in 1955, This company also started commercial facility construction business for corporations, not individuals. They offer facilities construction solutions in various fields, including logistics facilities, medical and nursing care facilities, food manufacturing facilities, offices, showrooms, and other facilities.

■ Overseas business
「Daiwa House Industry Co., Ltd. 」has begun development business in China since 1972, when Japan-China diplomatic relations just got recovered. They established a joint venture with a local subsidiary in the 1980s and have conducted full-scale business activities. Nowdays, Daiwa House is about to expand their businesses to Asia, Australia and the United States.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		3,512,909	3,795,992	4,143,505
Consolidated operating profit		310,092	347,141	372,195
Consolidated total assets		3,555,855	4,035,059	4,334,037
Consolidated net assets		1,329,901	1,513,585	1,643,717
Breakdown of sales	Housing business	390,332	385,369	383,891
	Rental housing business	977,215	1,030,834	1,061,390
	Mansion business	262,867	285,051	280,531
	Stock type business	105,592	112,148	114,556
	Commercial facilities	569,776	620,869	693,954
	Business facilities	828,478	850,214	1,022,393
	Others	513,581	637,123	716,175
	Adjustments	-134,937	-125,617	-129,387