Bull s
JK Holdings
Quarterly Report

July,2018
CONTENTSInternational51No.

P1 The Overview of Consolidated Financial
Results for JK Holdings for the Fiscal Year
Ended March, 2018
P2 Prospect of Business Condition for JulySeptember
P3 Market Outlook of Plywood
Okhotsk Woodpia Enhances CLT Production
P4 JK Wooden Structure-Lignification GroupNEWSThe Overview of Consolidated
Financial Results for JK Holdings for
the Fiscal Year Ended March, 2018 Keiichiro Aoki
（April 1, 2017 − March 31, 2018）

President
JK holdings Co.,Ltd.

The number of new housing starts in 2017 came to946,300 units（decreased by 2.8% from the previous
ﬁscal year）, and the number of new housing starts
for owner-occupied house, our main markets also
decreased to 282,100 units（decreased by 3.3%）. In
such a business environment, we have enhanced salesof lumber and pre-cut in the basic materials sector,
and have tackled expansion of sales to strengthen
sales and improve proﬁts in the sector of Bulls andJ-GREEN（Legal Wood Material）, which are ourprivate brands. Concerning the building materials andhousing equipment, we have undertook functional
enhancement of the engineering business to promotesales and improve proﬁtability. As a result, theCompany
Expansion of Overseas
Business
JK Holdings has 11 business basesin 7 countries, aiming for providing
high quality building materials thatare friendly to the environmentand human. We have expanded
to Moscow（Russia）, Jakarta（Indonesia）, and Taipei（Taiwan）
in 2017, and we are planning toadvance to Portland in the U.S. andSingapore in July 2018.
Currently the annual sales volumeof the overseas business as a wholeis about 3 billion yen.

consolidated ﬁnancial results for ﬁscal year ended
March 2018 showed net sales of 346.137 billion yen（1.8% increase compared to the previous ﬁscal year）,
operating proﬁt of 5.003 billion yen（8.9% increase）,
ordinary income of 4.839 billion yen（10.8% increase）,
and the net income for the year was 2.877 billion yen（3.1% increase）that were attributable to the parent
company shareholders.
Our annual targets for the ﬁscal year ending in March
2019（April 1, 2018 − March 31, 2019）shows net
sales of 350 billion yen, operating proﬁt of 5.2 billion
yen, ordinary income of 5.0 billion yen and current net
income of 3.0 billion yen that are attributable to theparent company shareholders.

Bulls International No.51

2

increase are three including Kinki,
Shikoku, and Kyushu areas amongbuilders, and four including Kinki,
Shikoku, Kyushu, and Chugoku
areas among distributors. Moredemand is expected in the westernpart of Japan as it has been before.

SurveyProspect of BusinessCondition for
July-September<Demand Forecast by
Builders and Distributors>
Demand forecasts for JulySeptember 2018 were madeby builders and distributors.
According to the results, buildersdemand forecast recovered from-9.1 points in the previous survey（April-June）to -8.1 points anddistributors ﬁgure also ralliedfrom -9.1 points to -5.5 points.
Compared with the same term in
the previous year, distributors do arise of 0.8 points and builders do adrop of 1.1 points, which vary but
show that housing demand seems
to be slightly upward.

According to the ﬁgures
released by the Ministry of Land,
Infrastructure, Transport andTourism, total housing starts forﬁscal 2017（April 2017 - March2018）were 946,000 units（97.2%of those in the previous year）.
By use, those of owners occupied
houses was 96.7% of those in theprevious year, rental houses 96.0%,
and built-for-sale houses 99.7%,
showing a downward turn in therental home sector which had beenregistering double-digit growth.
In contrast, detached houses inthe built-for-sale sector remained
steady at 102.3% of the previous
ﬁscal year s result.

Analyzing the results by area,
those which expect The demand<Sales Forecast byMain Manufacturers>

Demand Forecast by Builders

Growth rate(points)

20-2-1.1-4-5.4-6-8-10

-7.3
-8.5

-6.1

-7.0

-8.1
-9.1

-9.0

Jul-Sep
2016

Jun-Mar2017

Jul-Sep
2017

Jun-Mar2018

Jul-Sep
2018

answered the sales decrease
remained with a large portion,
showing that market uncertainty
is growing. The reason for more
forecasts on downward salesof housing equipment could be
attributed to the remodelingmarket which might have entereda lull for seasonal factors. In
general those who predicted thesales will shrink are more thanthose who predicted the sales will
expand . As much as 75% of themanufacturers forecasted salesof plywood to be the same as theprevious year, showing that stablesales are expected.

<Current States ofRemodeling Business>More businesses answered that theunit price of remodeling per house
is in an upward trend, although thenumber of remodeled houses has
reduced slightly. The remodelingdemand is expected to grow due tothe governmental policy promoting
vacant house countermeasures, but
it is necessary to pay attention tousers needs, tastes, and way ofliving because home remodelingand renovation business is directly
connected to consumers. In theremodeling and renovation sector,
home centers and internet sales
compete with sales with general
distribution route.

According to sales
forecasts by main
manufacturers,
the number ofanswer with thesales will increase
grew signiﬁcantly
compared with theprevious term inmanufacturers ofwooden building
material. On thecontrary, those who*The forecast（for July-September 2018）is thetotaled results of the data gathered from 3,000
client companies in Japan through interviews
which took place from late-April to mid-May in
2018.

Point0=business result in April-June,1992

Dealing volume of Lumber

Demand Forecast by Distributors

Growth rate(points)

260

0.7059-258-4-6-5.1-6.1-5.6-6.2-6.3

Jun-Mar2017

Jul-Sep
2017-8-10

Laminateb lumber-5.5-6.057

Jun-Mar2018

55

Jul-Sep
2018

Precut lumber

▲
●

●

▲
●

▲

LVL

Jul-Sep
2016

▲

●
▲

●

▲
●

56-9.1

Jul-Sep
2016

●
▲

●

▲

▲
●

Solid lumber

Jun-Mar2017

Jul-Sep
2017

Jun-Mar2018

Jul-Sep
2018

Point100=all responses expect increase

Point0=business result in April-June,1992

Sales Forecast by Major Supplying Manufacturers（Jul-Sep 2018）
increaseover15％14 〜 10％

below10％

0.0

0.0

14.5

0.0

0.0

0.0

House Equipments（9ﬁrms）
averagePlywood（13ﬁrms）
Wooden Building Materials（10ﬁrms）
Ceramic Building Materials（15ﬁrms）

level-oﬀ

decrease
below10％10 〜 14％

over15％

75.0

10.5

0.0

0.0

23.8

34.9

27.5

10.0

3.8

0.8

20.8

54.3

23.3

0.8

0.0

0.0

0.0

18.1

56.9

25.0

0.0

0.0

0.0

0.2

19.3

55.3

21.6

2.7

0.9

International No.51

Trend
Market Outlook
of Plywood<Housing Starts and Market Trend>

Housing starts in May 2018numbered 79,539 units, 98.6% of
the year-ago result, and the total
ﬁgure for April and May was
163,765 units, 99.2%.

It was predicted that shipmentsof both Japanese and imported
plywood would become active
after the Golden Week Holidays
in early-May, but those in thegeneral distribution route ended
up in remaining dull until the rainyseason started. However, the endof the rainy season came earlier
than expected this year, whichputs the industries concerned toexpect a brisk housing market forthe summer. The plywood market
prices remain unchanged.

Japanese plywood manufacturers
have been working on developinga wider range of items to produce,
mainly structural plywood.
They commented on the larger
inventories, which should bemaintained to some extent in orderto prepare for emergency demands
such cases as earthquake disasters.
The manufacturers have notcompromised their ﬁrm attitude interms of their prices.

<Trend of Imported plywood>
Imported plywood arrivals in
May 2018 were 275,711 cubic
meters, 107% of the result in theBulls

same month of the previous year.
Looking at the arrivals by countryof origin, 96,862 cubic meters werefrom Malaysia（95% of the yearago results）, 90,928 cubic metersfrom Indonesia（111%）, and 66,145
cubic meters from China（114%）.
Port inventories of imported
plywood are in a growing trend.
There are large stocks in someitems, whereas a few in someothers. The item balance has been
worse. The costs for imported
plywood continue to rise, showing
larger separation from theJapanese market prices.

Wholesalers' Prices of Plywood in Tokyo
2500

yen/sheet

Imported Plywood（Structural Use）
Imported Plywood（Concrete Form）
Domestic Plywood［Softwood Plywood for Structural Use(12mm)］
Domestic Plywood［Softwood Plywood for Structural Use(24mm)］

2000

1500

<Trend of Japanese plywood>
Japanese softwood plywood
production in May 2018 was251,743 cubic meters, 103.6% of
the result in the same month ofthe previous year, while shipments
were 240,609 cubic meters. The
stock was 141,122 cubic meters,
recording the largest for the last
couple years.

Company
Okhotsk Woodpia
Enhances CLT
Production
Okhotsk Woodpia, a cooperativeassociation（Kitami City Hokkaido,
Director: Masayuki Nakahara）, isincreasing the supply of laminatedlumber such as large dimension
structural laminated lumberof larch for non-housing ﬁeld
including wooden facilities in andout of the prefecture, in addition
to houses in the prefecture. It
obtained JAS certiﬁcate for its
CLT in 2017 and prepared systems
for supplying CLT. In Hokkaido,
medium dimension laminatedlumber is increasingly used for
nursing homes and nursery schools

10005000Jan 2018

Feb 2018

Mar 2018

since the number of constructionof large scale wooden buildings
has decreased. The area s demand
for laminated lumber in 2018 is
expected to be the same level asApr 2018

May 2018

Jun 2018

the previous year. The associationis planning to actively promote
the use of CLT by enhancing theproduction of the item.

3

4Bulls International No.51

TopicsJK Wooden Structure-Ligniﬁcation Group
NEWS（JK Timber Engineering Group）

Japan Kenzai Proceeding
Construction of the National
Stadium s Big RoofJapan Kenzai Co., Ltd. has been
engaged in the construction of
the National Stadium s big roof
since January 2018. It is the truss
structure combining cedar andlarch laminated lumber with steel.
The stadium will become a place
where all the audience can feel thewarmth of wood. The wood used
there is all forest-certiﬁed.
The roof truss is mainly made up
with steel frames, and they are
combined with lumber to prevent
deformity caused by earthquakes
and strong winds. Wooden
members are used inside the roof,
which is not directly exposed
to rain, and their durability isimproved with pressure-injected
preserving treatment. The main
structure is planned not to requirea large-scale renovation for 100

Truss (structure) can be found in a number ofbuildings. JKHD Groupʼs KEYTEC plant is a truss
structure.

years. On the other hand, to makethe stadium long life, its designis daily-maintenance-conscious,
securing access routes for checkout.
President Ogawa of Japan Kenzai
shows enthusiasms for theproject by saying, Through thisproject, we want to convey theattractiveness of Japanese woodand the technology of Japaneseconstruction to the world. We
would also like to contribute tocreate a recycling-oriented societythat makes use of appropriately
managed forest resources, byincreasing wooden buildings inboth housing and non-housing
construction with a total powerof Japan Kenzai and JK s groupcompanies.

the auditorium. For the citizens,
the hall is an oasis where they are

expected to become more familiar
with various arts.

Kamaishi Civic HallTETTO by KEYTECCo., Ltd.

As a replacement to the former
Kamaishi City Cultural Center（Iwate Prefecture）, which had
been struck by the Great East
Japan Earthquake in March 2011,
Kamaishi Civic Hall TETTO
has been constructed. Plenty of
KEYTEC s LVL is used for thehall s interior. The amount of
LVL is 90 m? and the ﬁgure is
the highest record among thecompany s interior works. Theareas LVL was furnished are partof the ceilings and the walls. The
curved walls, which were speciallyordered, is highly evaluated byexperts because the sound isreﬂected equally to any seat ofWood Land Tower 1-7-22 Shinkiba Koto-ku,Tokyo 136-8405 Japan
Phone +81-3-5534-3800 Fax +81-3-5534-3833
E-mail kouhou@jkhd.co.jp
URL http://www.jkhd.co.jp
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