Worth reading
72In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
520
¥10 billion (FY2028 revenue target)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales-1.7%
基準 50,855Target50,000million / ¥100 million
Operating profit-30.1%
基準 3,861Target2,700million / ¥100 million
Operating profit margin+2.0pt
基準 2,026Target2,028％／pt
ROE+9.0pt
基準 2,026Target2,035％／pt
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNet sales of ¥42,000 million, operating profit of ¥1,500 million, an operating margin of 3.6%, an equity ratio of 45.0%, and ROE of 7.5% (plan for the fiscal year ending March 2026) → Net sales of ¥50,855 million, operating profit of ¥3,861 million, an operating margin of 7.6%, an equity ratio of 48.9%, and ROE of 15.8% (actual results for the fiscal year ended March 2026)+21.1%Calculated from the two disclosed figures
Total investment planApproximately ¥3.0 billion (over the three-year planning period, equivalent to 50% of approximately ¥6.0 billion in operating cash flow)
Investment amount by sectorField Advancement of construction DX, including BIM/CIM / Amount Approximately ¥200 million, Field ZEB / Amount Not disclosed, Field Geothermal energy systems / Amount Not disclosed, Field Real estate development, including the purchase of investment properties / Amount Approximately ¥1 billion, Field Human capital, including recruitment, education, evaluation methods, and recruitment strategy / Amount Not disclosed, Field Acquisition funding and other costs related to M&A transactions / Amount Not disclosed, Field Development of business locations and expansion of employee benefits / Amount Approximately ¥700 million
Statements about the use of capital
Payout ratio / DOE policyThe Company targets a payout ratio of 30% for fiscal 2028 and 35% for fiscal 2035. No DOE policy is stated.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Company lists share buybacks as a shareholder return measure, but the buyback authorization, timing, and conditions are Not disclosed.
Cost of capitalApproximately 7.6%. WACC was calculated based on fiscal 2026.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR remained below 1.0x at 0.7x in fiscal 2026, which the Company attributes primarily to the low share price. It aims to achieve a PBR of 1.0x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Organizational reform: strengthening and advancing employee recruitment, education, and evaluation systems
02Earnings structure reform: strengthening the sustainability of an earnings structure centered on the core business
03Group strategy: strengthening insufficient management resources and Group competitiveness
04Advancement of DX: labor savings and efficiency gains through DX, and improved IT literacy
05Active advancement of BIM/CIM
06Establishment of a sustainable management structure: long-term growth aimed at both corporate management and the resolution of social issues
07Review of personnel systems and more efficient human resources management
08Strengthening integrated schemes and public-private partnerships
09Expansion into new business areas and supplementation of the core business through M&A
10Business process reform, including a review of existing systems
11Key initiatives to advance ESG management
Plan assumptionsLonger construction periods resulting from work-style reforms, Rising labor costs, Labor shortages resulting from a declining working-age population, Growing demand for labor-saving and efficiency-enhancing technologies, including DX, Growing resort development in Nagano Prefecture and surrounding areas, Growth in renovation businesses driven by soaring prices for newly built condominiums, Increasingly aging infrastructure facilities and the need to address them, Decline or postponement of construction projects due to a shortage of engineers, Higher raw material and labor costs
Non-financial targetsIndicator Percentage of Female Managers / Current status 6.4％ / Target 10％ / Timing Fiscal year ending March 2028, Indicator Reduction in primary energy consumption of ZEB buildings / Current status Not disclosed / Target 100％ / Timing Not disclosed
Risks identified by the company
Labor shortages resulting from a declining working-age population
Decline or postponement of construction projects due to a shortage of engineers
Higher raw material and labor costs
Delays or suspension of capital investment projects
A high-cost market environment
Securing the supply chain
Responding to new overseas capital and securing credit information
Passing on construction technologies amid a shortage of engineers
Reason for revision or withdrawal
The Company anticipates lower profit due to higher costs resulting from longer construction periods under work-style reforms and rising labor costs. It will increase investment in DX and education to improve quality, enhance construction efficiency, and reduce workloads.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2026 |
| Plan period | Fiscal 2026 to fiscal 2028 (second phase) |
| Progress against the plan | Formulated |
| Sales Target | ¥50,855 million (actual results for the fiscal year ended March 2026) → ¥52.0 billion (quantitative target for fiscal 2028). The presentation materials show ¥50,000 million (plan for the fiscal year ending March 2028).（Based on the target stated in the text: approximately +2.3%. Based on the presentation materials: approximately -1.7%） |
| Operating profit target | ¥3,861 million (actual results for the fiscal year ended March 2026) → ¥2.9 billion (quantitative target for fiscal 2028). The presentation materials show ¥2,700 million (plan for the fiscal year ending March 2028).（Based on the target stated in the text: approximately -24.9%. Based on the presentation materials: approximately -30.1%） |
| Operating profit margin target | 7.6% (actual results for the fiscal year ended March 2026) → 5.6% (quantitative target for fiscal 2028). The presentation materials show 5.4% (plan for the fiscal year ending March 2028).（Based on the target stated in the text: approximately -26.3%. Based on the presentation materials: approximately -28.9%） |
| ROE target | 15.8% (actual for the fiscal year ending March 2026) → The Company aims for 9.3% (9.2% in the presentation materials, plan for the fiscal year ending March 2028). The target for fiscal 2035 under the Long-Term Vision 2035 is at least 11%.（Based on the target stated in the text: approximately -41.1%） |
| Payout ratio / DOE policy | The Company targets a payout ratio of 30% for fiscal 2028 and 35% for fiscal 2035. No DOE policy is stated. |
| Treasury share acquisition policy | The Company lists share buybacks as a shareholder return measure, but the buyback authorization, timing, and conditions are Not disclosed. |
| Cost of capital | Approximately 7.6%. WACC was calculated based on fiscal 2026. |
| Self-assessment of PBR and share price | PBR remained below 1.0x at 0.7x in fiscal 2026, which the Company attributes primarily to the low share price. It aims to achieve a PBR of 1.0x. |
| Total investment plan | Approximately ¥3.0 billion (over the three-year planning period, equivalent to 50% of approximately ¥6.0 billion in operating cash flow) |
| Investment amount by sector | Field Advancement of construction DX, including BIM/CIM / Amount Approximately ¥200 million, Field ZEB / Amount Not disclosed, Field Geothermal energy systems / Amount Not disclosed, Field Real estate development, including the purchase of investment properties / Amount Approximately ¥1 billion, Field Human capital, including recruitment, education, evaluation methods, and recruitment strategy / Amount Not disclosed, Field Acquisition funding and other costs related to M&A transactions / Amount Not disclosed, Field Development of business locations and expansion of employee benefits / Amount Approximately ¥700 million |
| Non-financial targets | Indicator Percentage of Female Managers / Current status 6.4％ / Target 10％ / Timing Fiscal year ending March 2028, Indicator Reduction in primary energy consumption of ZEB buildings / Current status Not disclosed / Target 100％ / Timing Not disclosed |
| Plan assumptions | Longer construction periods resulting from work-style reforms, Rising labor costs, Labor shortages resulting from a declining working-age population, Growing demand for labor-saving and efficiency-enhancing technologies, including DX, Growing resort development in Nagano Prefecture and surrounding areas, Growth in renovation businesses driven by soaring prices for newly built condominiums, Increasingly aging infrastructure facilities and the need to address them, Decline or postponement of construction projects due to a shortage of engineers, Higher raw material and labor costs |
| Key initiatives | Organizational reform: strengthening and advancing employee recruitment, education, and evaluation systems, Earnings structure reform: strengthening the sustainability of an earnings structure centered on the core business, Group strategy: strengthening insufficient management resources and Group competitiveness, Advancement of DX: labor savings and efficiency gains through DX, and improved IT literacy, Active advancement of BIM/CIM, Establishment of a sustainable management structure: long-term growth aimed at both corporate management and the resolution of social issues, Review of personnel systems and more efficient human resources management, Strengthening integrated schemes and public-private partnerships, Expansion into new business areas and supplementation of the core business through M&A, Business process reform, including a review of existing systems, Key initiatives to advance ESG management |
| Results under the previous plan | Net sales of ¥42,000 million, operating profit of ¥1,500 million, an operating margin of 3.6%, an equity ratio of 45.0%, and ROE of 7.5% (plan for the fiscal year ending March 2026) → Net sales of ¥50,855 million, operating profit of ¥3,861 million, an operating margin of 7.6%, an equity ratio of 48.9%, and ROE of 15.8% (actual results for the fiscal year ended March 2026) |
| Reason for revision or withdrawal | The Company anticipates lower profit due to higher costs resulting from longer construction periods under work-style reforms and rising labor costs. It will increase investment in DX and education to improve quality, enhance construction efficiency, and reduce workloads. |
| Risks identified | Labor shortages resulting from a declining working-age population, Decline or postponement of construction projects due to a shortage of engineers, Higher raw material and labor costs, Delays or suspension of capital investment projects, A high-cost market environment, Securing the supply chain, Responding to new overseas capital and securing credit information, Passing on construction technologies amid a shortage of engineers |
| Publication date | 12 May 2026 |
Items this document does not state (5)
Net income targetROIC targetSegment targetSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company anticipates lower profit due to higher costs resulting from longer construction periods under work-style reforms and rising labor costs. At the same time, it plans to increase investment in DX and education to improve quality, enhance construction efficiency, and reduce workloads.
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