Bull s
JK Holdings
Quarterly ReportInternationalApril,2022
CONTENTS

66

No.

P1 JK Holdings ﬁnancial summary for thethird quarter of the ﬁscal year ending March 2022
We are selected as the prospective project contractor
for the Tama Central Park PFI ProjectP2 Business Prospect for April ‒ June 2022
P3 Market Outlook of Plywood
KEY TEC received a certiﬁcate of gratitude at the110th anniversary of the Imperial Gift Forest
P4 Original construction method TE system for
MODELLAZIONE LEGNOʼs oﬃce

JK Holdings ﬁnancial summary for the third quarterof the ﬁscal year ending March 2022
Our country’s economic and social activities have been sigQL¿FDQWO\UHVWULFWHGGXHWRWKHVSUHDGRI&29,'2QWKH
other hand, housing starts increased by about 6-7 % comparedto the same period in the previous year in both total houses
and owner-occupied houses which is the mainstay of ourgroup.
Under these circumstances, our group has conducted businessactivities carefully while taking various measures to prevent
WKHVSUHDGRI&29,'LQIHFWLRQ:LWKUHJDUGWRWKHZRRG
shock and supply constraints of housing equipment, the company has strived to secure the quantity and purchase alternative material by leveraging our group’s integrated strength andstrong relationships with manufacturers. The company also
put its medium-term management plan “Breakthrough 21”
into practice and has developed systems with an eye toward
the next generation.
$VDUHVXOW¿QDQFLDOUHVXOWVIRUWKHWKLUGTXDUWHURIWKLV¿VFDO
year are as follows.
Net sales rose by 9.7% from the same period in the previous
year to 279.738 billion yen. The company has applied a new
DFFRXQWLQJVWDQGDUGIURPWKLV¿VFDO\HDU7DNLQJLQWRDFFRXQW

Topics 1
A group of companies led by ButsurinCo., Ltd. has been selected as theprospective project contractor for theTama Central Park Renovation, Maintenance, and Operation Project by Tama
City, Tokyo. The group consists of ninecompanies including JK Holdings Co.,
Ltd. and TIMBER SCAPE Co., Ltd.

Keiichiro Aoki

President
JK Holdings Co.,Ltd.

the amount of 10.919 billion yen affected by this change, netsales stood at 290.657 billion yen (up 12.4%). This growthexceeded the growth rate of both the total housing starts (up7.1%) and the housing starts of owner-occupied houses (up11.2%).
$VIRUSUR¿WVRSHUDWLQJLQFRPHLVELOOLRQ\HQDQ
increase of 149.0 % year over year, ordinary income is 10.746
billion yen, an increase of 173.6%, and quarterly net income
attributable to shareholders of the parent company is 7.444
billion yen, an increase of 213.9%. One of the factors of thisXQSUHFHGHQWHGVLJQL¿FDQWLQFUHDVHLQSUR¿WVLVGXHWRWKH
robust increase in the operating rate at KEY TEC Yamanashi
plywood factory which started operation in the spring of the\HDUEHIRUHODVW,QDGGLWLRQJURXS¶VWRWDOJURVVSUR¿WPDUJLQ
increased by carefully controlling the purchase and sales in
ERWKTXDQWLW\DQGTXDOLW\DQGWKLVDOVRFRQWULEXWHGWRDVLJQL¿FDQWLQFUHDVHLQSUR¿WVWe are selected as the prospective project contractor
for the Tama Central Park PFI Project
struction of private revenue-generating
facilities; management and operationservices, and others. The construction
will proceed from October 2022 toDecember 2024. The park is expected
to be fully operational in January 2025.

More than 30 years have passed sinceTama Central Park opened in 1987, andthe park faces issues such as the aging
of facilities and changes in the surrounding environment.
Currently, public facilities
adjacent to the park arebeing renewed and upgraded. Under these circumstances, it was decided to
The exterior of Keyaki House, a park The exterior of Flower & Bakery, a park proceed with renovation

The scope of the project includes theimplementation design, remodeling andmaintenance, and construction supervision of the park renovation; new con-facility subject to the PFI project

facility subject to the PFI project

Birdʼs-eye view of Tama Central Park after renovationand improvement of the park.
This is a large-scale partnership project
between public and private sectors for alarge urban park. The goal is to create
an attractive environment where diverse users can spend time safely andcomfortably. We are to operate the parkthat will be loved and used by citizens.

Bulls International No.66

2Survey

Under the circumstances, we conducteda survey about business demand prospects for April to June 2022. According
to the survey, small builders (contractors and other building companies)
predicted an index of minus 9.0 points
while distributors answered minus 13.0
points, returning to negative again after
turning positive in the previous survey
for January to March 2022. It is due tothe December 2021 decrease in thenumber of owner-occupied houses forWKH¿UVWWLPHLQPRQWKV\HDURQ\HDU
DQGWKHLPSDFWRIWKH&29,'spreading again from January 2022. Byarea, they showed a negative forecast in
all the regions except Koshinetsu andChubu.

Business Prospect forApril ‒ June 2022
〈Demand Forecast byBuilders and Distributors〉
Housing starts for January to December
2021 totaled 856,484 units (105.0%
year-on-year), showing a growth for the¿UVWWLPHLQ¿YH\HDUVDFFRUGLQJWRWKH
housing statistics released by the Ministry of Land, Infrastructure, Transportand Tourism. Owner-occupied houses
were 109.4% year-on-year, rental
houses 104.8%, and built-for-salehouses 101.5%. Of the built-for-salesector, condominiums found 93.9%
year-on-year, whereas detached houses
did 107.9%. The detached houses ofboth built-for-sale and owner-occupied
sectors pushed up the overall starts.
Demand Forecast by Builders

The housing market has been strongXQWLOQRZHYHQLQWKH&29,'
pandemic, but we will keep a close eye
on future trends.

〈Sales Forecast by Leading
Manufacturers〉

100

1.5

-10 -18.3
-20

-9.0
-21.1

-34.5

-30
-40
-50

-40.6

-46.0

-60

In the sales forecasts bymajor manufacturers,
positive views forplywood were reducedby half compared to theprevious survey, although there were no-70-67.0 -65.4-80 Apr-Jun
Oct-Dec
2020

Apr-Jun2021

2020

Oct-Dec2021

100-15.4

-80

50

-43.1
-38.0

45-48.5

-60
-70

55

-26.2

-50

40

-68.6 -66.7
Apr-Jun2020

Oct-Dec
2020

Laminated lumber
Solid lumber
Precut lumber
LVL

60-13.0-40

In the Kodomo Mirai Housing Support
Project, a government subsidy scheme,
expectations are higher for the remodeling sector, which is not limited tohouseholds with children or young
couples, than for the new housing
sector, where subsidy amounts are set
DFFRUGLQJWRHQHUJ\HI¿FLHQF\65-1.3-30

Many of the businesses that havereceived orders but have not been able
to start housing construction expect
construction to begin around July. With
regard to the price hikes of building
materials, responses to the survey aredivided between those where pricepass-through is progressing and thosewhere it is not. A series of price increases have been announced by manufacturers, and there is an urgent need topass these increases on to the prices ofthe latter.

Dealing Volume of Lumber

Demand Forecast by Distributors-20〈Various Topics〉

The forecast survey for April ‒ June 2022 is based on the totaled data gathered from 3,000 client companies in Japan through the internet, which took
place from late-January to mid-February 2022.

Apr-Jun2022

Point0=business result in April-June,1992-10

negative predictions. Manufacturers ofhousing equipment showed morenegative predictions than positive ones,
falling to minus 4.0 points from plus
14.8 points in the previous survey. Dueto the prolonged supply delays, manyof the manufacturers seem to be making negative forecasts.

Apr-Jun2021

Oct-Dec
2021

35 Apr-Jun

Apr-Jun2022

2020

Oct-Dec
2020

Apr-Jun2021

Oct-Dec
2021

Apr-Jun2022

Point100=all responses expect increase

Point0=business result in April-June,1992

Sales Forecast by Major Supplying Manufacturers（Apr-Jun 2022）
increaselevel-oﬀ

decreaseover15％14 〜 10％

below10％

below10％10 〜 14％

over15％

8.3

8.3

25.0

58.4

0.0

0.0

0.0

11.1

0.0

38.9

33.3

11.1

5.6

0.0

0.0

8.7

43.5

43.5

0.0

0.0

4.3House Equipments（9ﬁrms）

4.0

0.0

16.0

56.0

20.0

0.0

4.0

average

5.9

4.3

30.9

47.6

7.8

1.4

2.1

Plywood（13ﬁrms）
Wooden Building Materials（10ﬁrms）
Ceramic/Heat Insulation（15ﬁrms）

Bulls International No.66

Trend
Market Outlookof Plywood〈Trend of Japanese Plywood〉
Japan’s production of softwood plywood in January 2022 was 243,765
cubic meters (99.7% year-on-year), andshipment was 247,889 cubic meters(99.5%). The amount of both production and shipment was almost equal.
Inventories were 91,108 cubic meters(84.7%).
Inquiries and shipment of Japanese
VRIWZRRGSO\ZRRGKDYHEHHQ¿UP
continuously. As plywood manufacturers’ inventories have declined rather
than increased, the delivery delays havenot been solved yet. Inquiries havecalmed down somewhat in areas affected by snowfall. Overall, however,prices have been rising every month,and consumers’ appetite for purchasehas not waned yet. In the market, priceincreases are easily accepted because
securing goods is a priority. It will taketime to improve the supply-demandbalance, and the shortage of domestic
plywood will continue for the foreseeable future.

〈Trend of Imported Plywood〉
Japan’s import of plywood in January2022 was 256,167 cubic meters(120.0% year-on-year), which increased
to 110.2% of the results of 232,494
cubic meters in the previous month.
Looking at the result by country oforigin, the amount of imported plywood showed 79,168 cubic meters(101.9%) from Malaysia, 86,444 cubic
meters (132.0%) from Indonesia, and63,248 cubic meters (131.3%) fromChina.
The volume of cargo arriving at ports
marked 250,000 cubic meters for the¿UVWWLPHVLQFH-DQXDU\VKRZLQJ
an increasing trend. As products continue to arrive more than they are shippedout to the markets, the inventories ofport warehouses are almost full. As thestatistical data shows, the market
movement of 12 mm products mainly
produced in Malaysia is at a normal
pace, but that of ordinary plywood and/9/IURP,QGRQHVLDDQG&KLQDRI
which arrival at ports is large, is stagnant, causing the inventories to lose
their balance. Due to seasonal factors
such as snowfall in some regions, itwould take a little more time for fullscale movement of shipments. Incontrast to the stagnant Japanese market, overseas shippers continue to raise
their prices repeatedly because of risingcosts. Users are coping with the hikes
while spot purchasing as minimum aspossible.

Wholesalersʼ Prices of Plywood in Tokyo

yen/sheet

3,500
3,000
Structural Use 12mm JAS F4☆
Concrete Form 12mm JAS
Softwood Plywood for Structural Use 12mm JAS F4☆
Softwood Plywood for Structural Use Neda-non 24mmwith tongue JAS F4☆

2,500
2,000
1,500
1,000

Oct2021

Nov2021

Dec2021

Jan2022

Feb2022Mar2022

Topics 2

KEY TEC received a certiﬁcate of gratitude at the 110th
anniversary of the Imperial Gift Forest.(<7(&&R/WGUHFHLYHGDFHUWL¿cate of gratitude from the Governor ofYamanashi Prefecture at the 110th
Anniversary Ceremony of the Imperial
Gift Forest held on October 16, 2021.
The award is for its achievement in
SURPRWLQJWKHXVHRI)6&FHUWL¿HG
wood from prefectural forests at theAwarding ceremony

Yamanashi plywood factory.
The Imperial Gift Forest was given toYamanashi Prefecture by Emperor
Meiji in 1911. Since then, it has contributed greatly to the development of
the prefecture, playing various roles inpreserving the prefectural land, supplying wood, and nurturing water
resources.
The 110th Anniversary Ceremonyof the Imperial Gift Forest was held
to remind people of its history as
well as roles played to date, and toprovide an opportunity for everyonein the prefecture to ensure theprotection and nurture of the forest
with various public functions inorder to passthem on to thenext generation.
KEY TEC has
been handling)6&FHUWL¿HG
wood from
Certiﬁcate of gratitudeprefecturalforests for over 10 years, and has madeefforts to be adapted it more in MINISTOP Co., Ltd., Mitsubishi Estate HomeCo., Ltd., and other businesses. As abusiness in the prefecture, we willcontinue to deepen cooperation withforestry workers in Yamanashi, maintain and expand employment opportunities for local people, and contribute to
the local community.

34No.66
Bulls International No.65

Topics 3

Original construction method TE system forMODELLAZIONE LEGNOʼs oﬃce02'(//$=,21(/(*12¶VRI¿FH
building, a two-story wooden structurewith a total area of 232m2, was newly
constructed in Gose City, Nara Prefecture. Japan Kenzai Co., Ltd. was involved in its structural design, material
procurement and processing, andconstruction cooperation.
The building applied an original construction method TE system, which
combines the CLT construction methodand wooden post and beam system toDFKLHYHGHVLJQÀH[LELOLW\HFRQRPLF
HI¿FLHQF\DQGVWUXFWXUDOVWUHQJWK7KH
system was jointly developed forwooden buildings with three stories or
OHVVE\¿YHFRPSDQLHVDV212768.$
Co., Ltd., Japan Kenzai Co., Ltd.,TIMBERAM Co., Ltd., Butsurin Co.,
Ltd., and Timber Engineering Construction Co., Ltd.
The TE system allows a column-freespace with a span of 8m x 13m in theEXLOGLQJ7KHRI¿FHRQWKH¿UVWÀRRUInterior 1

Exterior

gives a sense of openness with a
4.5m-high ceiling and sashes of
8.8m-wide x 4m-high to bring in light,
while wooden structural materials arevisible on the walls and ceiling. Theroof panels are made of 90mm x 2m x
11m Japanese cypress CLT and thewalls are made of 120mm-thick Japanese cedar CLT. We were able to in-ability.

crease the wood yield of the CLT at thedesign stage, as well as the cost-effectiveness of transportability and work-

are both local businesses. This is acollaboration example with the localcommunity.

The CLT materials are locally-grown
Japanese cedar and cypress in Nara
Prefecture, and the laminated lumber
for the building was procured from a
local manufacturer in the prefecture. In
DGGLWLRQWKHGHVLJQ¿UPDQGWKHFRPpany that constructed the wooden frame

Interior 2

Wood Land Tower 1-7-22 Shinkiba Koto-ku,Tokyo 136-8405 Japan
Phone +81-3-5534-3800 Fax +81-3-5534-3835
URL https://www.jkhd.co.jp
C 2022JK Holdings Publication Copyright○