[Company analysis] Sekisui House, Ltd. (積水ハウス)

「Sekisui House, Ltd. (積水ハウス)」is a construction company headquartered in Osaka Prefecture, and specialized in the housing business. Originally, this company was house division of 「Sekisui Chemical Company(積水化学工業株式会社)」and established by seperation and independence in 1960. But it is no longer a consolidated entity of Sekisui Chemical.  In the housing indurstry for individuals, 「Haseko Corporation (長谷工コーポレーション)」,「Daiwa House Industry Co., Ltd. (大和ハウス工業)」are their competitors. The number of consolidated employees is 22,913.

 

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	Sekisui House, Ltd.
Company name (Japanese)	積水ハウス
Date of establishment	August 1960
Headquarters location	〒531-6008 大阪府大阪市北区大淀中1-1-88
Capital	202,591
Consolidated sales	2,160,316
Consolidated operating profit	189,223
Consolidated total assets	1,413,053
Consolidated capital	1,196,923
Capital adequacy ratio	84.7%
Consolidated number of employees	22,913

 

 

 

2. Summary and Features

 
The house division of 「Sekisui Chemical Company」was based on「Nippon Chisso Hiryo K.K.(日本窒素肥料株式会社)」and by the independence, current 「Sekisui House, Ltd.」was established. 「Asahi Kasei(旭化成)」and「Shin-Etsu Chemical(信越化学工業)」are also derived from「Nippon Chisso Hiryo K.K.」

In the housing business for individuals, they compete with「Daiwa House Industry Co., Ltd.,」and「Haseko Corporation」 and others. However,  as for the quantity of housing building, Sekisui House has the largest number of construction in Japan.「Sekisui House, Ltd.」has reputation of stability, so that many customers select them and the company are using this fact to attract new customers.

Besides, Sekisui House is a company that is highly regarded for its design proposal capabilities. In Japan, it has a high brand value and has a number of high-end housing construction results owned by high-income groups such as company managers, doctors, lawyers and tax accountants. However, the price is slightly higher than the industry average.

In 1963, shortly after the establishment, they tried on the development of plastic-based housing. This was an idea that came from the influence of「Sekisui Chemical Company」, the parent company of「Sekisui House, Ltd.」. However, due to the brittle nature of plastics, the cost was too big. so that Sekisui House will eventually gave up plastic housing.

However, from this experience, this company succeeded in developing a prefabricated house using steel and plastic. The difference between Sekisui House and other companies is that it utilizes its unique technology, like this prefabricated house. Currently, they offers both steel-frame prefabricated houses and wooden prefabricated houses.

 

 

 

3. Major Business

 

 ■ Detached house business
The detached house business of Sekisui House is also called "contracted business.".  As a core business,「Sekisui House, Ltd.」normally constructs detached houses for the land owener.

■ Rental housing business
This company mainly focus on high value-added rental housing business by conducting development in the city center.

■ Stock type business
Sekisui House operates a remodeling business and a real estate business as a stock-type business.

■ International Business
Based on technology and know-how accumulated in business in Japan,  「Sekisui House, Ltd.」are developing high value-added housing around the world. Currently, the company operates in four countries: Australia, the United States, China, and Singapore.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		2,026,931	2,159,363	2,160,316
Consolidated operating profit		184,164	195,540	189,223
Consolidated total assets		2,184,895	2,419,012	1,413,053
Consolidated net assets		1,118,264	1,208,121	1,196,923
Breakdown of sales	Housing business	383,129	371,171	357,944
	Rental housing business	440,312	442,845	416,062
	Remodeling business	133,498	136,843	141,416
	Real estate business	469,132	489,891	514,035
	Development business	338,631	336,756	411,853
	International business	182,127	306,716	245,953
	Others	80,099	75,137	73,050