Honkarakenne as an investment
Honkarakenne Oyj is a global pioneer in the log building industry and a bellwether in healthy wood construction. We manufacture high-quality, healthy and ecological log homes , holiday homes and public buildings under the Honka® brand from renewable, certified solid wood. We have delivered over 85,000 homes and holiday homes, saunas and other buildings worldwide. Our houses are manufactured in Karstula in Central Finland and their certified technology performs excellently in various climates and conditions.
Honkarakenne is known for high quality, a strong brand and its top-quality architecture and collection. Honka is a pioneer in its industry that develops innovative and unique private and holiday homes, invests in state-of-the-art production technology, and sees marketing as part of continuous business development.
Growing interest in wood construction and consumers’ health and environmental awareness support our organic growth outlook. In the wake of wood construction, the popularity of log construction and reputation of logs as an ecological, sustainable and responsible building material have grown. The popularity of logs in public construction is growing steadily, and the market share of logs in the construction of detached houses has increased significantly over the last decade. In recent years, Honkarakenne’s financial performance has been strong and the long-term growth outlook is favourable driven by several market drivers.
We are the second largest player in the Finnish log industry with a market share of close on one-fifth and the largest Finnish export company in the industry. We have a strong and well-established market position in log construction, which offers economies of scale compared to our competitors and growth opportunities in the export markets. Honkarakenne has a strong brand and our extensive sales network also operates outside Finland.
The popularity of logs as a building material is expected to grow worldwide in the coming years, and the outlook for export markets is promising.
In 2022, exports accounted for 26% of our total net sales, with Central Europe and Japan as the main export destinations. As an internationally recognised player, we are well positioned to expand our business in the future beyond our current main export markets.
Honkarakenne's business operations tie up moderate amounts of capital and investment needs are low, creating a strong basis for good cash flow development. Healthy balance sheet provides a good basis for long-term development. Fixed costs scale with net sales growth, which offers improvement potential for profitability. Strong family ownership creates perseverance, which, in addition to the company's strong balance sheet position, strong cash flow and low investment needs, creates strong preconditions for creating significant shareholder value.