Industry Revenues:

• Energy and Resources: 35%
• Aviation and Defense: 30%
• Industrial Equipment and Mechanical Engineering: 20%
• Social Infrastructure and Offshore Facilities: 15%

TOP 3 Markets:

• Japan: 40%
• USA: 25%
• China: 15%

The IHI Corporation generates its revenues from various industries, with the largest share coming from the Energy and Resources sector. This reflects the company's strategic focus on sustainable energy solutions.

Japan remains the most important market for IHI, attributed to its strong local presence and domestic market. The USA and China follow as significant markets, strengthened by international projects and partnerships.

Production Sites: Japan, China, Southeast Asia, Europe

The IHI Corporation, a Japanese company, mainly produces its products in Japan, where the majority of its production facilities are located. In addition, IHI has established production capacities in China and Southeast Asia to better serve the demand in these rapidly growing markets.

In Europe, IHI also operates production facilities to strengthen its presence in the European market and to take advantage of logistical benefits. This geographical diversification enables the company to respond more efficiently to regional market requirements and optimize its global supply chain.

Revenue Growth: Estimated 5-7% annually (2025)

Focus on Renewable Energy and Sustainable Technologies:

IHI Corporation has aligned its growth strategy towards the development and implementation of technologies in the field of renewable energy and sustainability. This includes investments in hydrogen technologies and CO2 capture and storage.

Diversification and Digital Transformation:

The company aims to diversify its business areas by expanding its presence in digital transformation and automation. This is intended to be achieved through partnerships and acquisitions in these sectors.

Enhancing Global Presence:

IHI plans to expand its international market presence, particularly in Asia and North America. This will be supported by strategic alliances and the expansion of production capacities in these regions.

These strategic initiatives are intended to secure long-term growth and strengthen the competitiveness of IHI Corporation on a global scale.

Main raw materials: Steel, Aluminum, Copper

Countries of origin:

• Steel: China, South Korea, Japan
• Aluminum: Australia, Canada, Russia
• Copper: Chile, Peru, USA

IHI Corporation, a significant Japanese company in the field of mechanical engineering and heavy industry, imports a variety of raw materials needed for the production of turbines, ships, and other industrial plants. Steel is mainly sourced from China and South Korea, as these countries are major steel producers and offer competitive prices.

Aluminum is imported from Australia, Canada, and Russia, as these countries have large bauxite deposits and strong aluminum production. Copper, another important raw material, is imported from Chile and Peru, which are among the world's largest copper producers. The USA complements this supply chain with its stable trade relationships and high-quality raw materials.

Market Share: 10% in the heavy industry sector (2024, estimate)

Technological Innovation: Leading in the development of environmentally friendly technologies

Diversification: Strongly diversified in the areas of energy, infrastructure, aviation, and mechanical engineering

IHI Corporation has a significant competitive advantage due to its strong market position in the heavy industry sector and its leading role in the development of environmentally friendly technologies. The company benefits from broad diversification, allowing it to spread risks and capitalize on opportunities in various sectors.

Continued investment in research and development, especially in the field of sustainable technologies, further strengthens their position. This innovation combined with a solid market presence gives IHI Corporation a sustainable advantage over many competitors.

Institutional Investor Share: 45% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share in IHI Corporation is estimated to be 45%. This demonstrates the confidence of institutional investors in the company's long-term stability and growth potential.

There were no significant insider buys or sells in the last year, indicating that the management and other insiders currently do not expect any major changes in the company's valuation or strategy. This can be interpreted as a sign of stability and trust in the current corporate leadership and strategy.

Market share of IHI Corporation: Estimated 5% (2025)

Main competitors and their market shares:

1. Mitsubishi Heavy Industries (TSE:7011): 15%
2. Kawasaki Heavy Industries (TSE:7012): 10%
3. Hitachi Construction Machinery (TSE:6305): 8%
4. Komatsu Ltd. (TSE:6301): 7%
5. Sumitomo Heavy Industries (TSE:6302): 6%
6. IHI Corporation (TSE:7013): 5%
7. Toshiba Infrastructure Systems & Solutions Corporation: 4%
8. Fujitsu Limited (TSE:6702): 3%
9. NEC Corporation (TSE:6701): 2%
10. JFE Holdings, Inc. (TSE:5411): 2%

The market share of IHI Corporation is approximately 5%, which is relatively low compared to its main competitors. Mitsubishi Heavy Industries leads the market with a 15% share, followed by Kawasaki Heavy Industries and Hitachi Construction Machinery.

Economic moat of IHI Corporation:

IHI Corporation has a moderate economic moat, mainly characterized by its specialization in aerospace, energy facilities, and infrastructure projects. This specialization allows the company to remain competitive in specific niche markets.

In comparison to its competitors, Mitsubishi Heavy Industries has a stronger economic moat due to its broader product portfolio and larger global presence. Kawasaki Heavy Industries and Komatsu Ltd. also have significant advantages through their innovation capabilities and strong brand presence.

Overall, IHI Corporation has a certain competitive advantage in specific segments, but its economic moat is less pronounced compared to the leading companies in the market. The competition has a stronger and broader economic moat in many areas, giving them an advantage in market leadership.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Order Backlog: 12% Increase (2024)

In 2024, IHI Corporation recorded solid revenue growth of 8.5%, driven by strong demand in its core segments, especially in the energy and environmental technology sector. The profit growth of 10.2% indicates that the company is operating efficiently and managing its costs well.

Another positive indicator is the 12% increase in the order backlog, signaling strong future business activity. This demonstrates that IHI Corporation is capable of acquiring new projects and securing long-term contracts, which bodes well for the stability and growth of the company.

The strategic focus on sustainable technologies and diversification into various business areas could further strengthen the company in the coming years. Given these factors, IHI Corporation appears to be a promising investment, provided that macroeconomic conditions remain stable and the company achieves its strategic goals.

Dividend Yield: 2.1% (2025, estimated)
Dividend History: Steady payout over the last 5 years

In recent years, IHI Corporation has regularly distributed dividends, indicating a reliable dividend policy. The estimated dividend yield for 2025 is around 2.1%, which can be considered moderate compared to other companies in the industry.

The reliability of the payout is supported by stable financial performance and a conservative payout ratio. This suggests that the company is able to pay dividends even in economically challenging times.