Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
14500
Millions of yenWording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+11.5%
基準 13,000Target14,500Millions of yen
Operating profit+11.5%
基準 1,300Target1,450Millions of yen
Operating profit margin0.0pt
基準 10Target10%
Net income for the current fiscal year+9.5%
基準 758Target830Millions of yen
ROE-2,007.0pt
基準 2,026Target19%
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 11,000 / Operating profit 500 / ROE 10.3% → Net Sales 12,384 / Operating profit 1,213 / ROE 15.4%（Net Sales 12.6% / Operating profit 142.6% / ROE 49.5%）
Total investment planInvestments: ¥2,900 million (management allocation: ¥900 million, strategic investments: ¥1,500 million, and ordinary investments: ¥500 million). Total capital allocation over 3 fiscal years is ¥3,700 million.
Investment amount by sectorField Management allocation (investment in people and DX investment) / Amount 900 Millions of yen, Field Strategic investments (new businesses, promotion of collaboration, M&A, etc.) / Amount 1,500 Millions of yen, Field Ordinary investments (machinery, equipment, etc.) / Amount 500 Millions of yen
Statements about the use of capital
Payout ratio / DOE policyThe company uses a DOE (dividend on equity) of approximately 4%, based on consolidated shareholders' equity, as a guideline. Its future dividend policy will be determined after comprehensively considering financial soundness, growth investments, the business environment and cash flow conditions, among other factors.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of equity (COE): 9.9%. Breakdown: inverse of PER, 7.9%, plus expected growth rate, 2.0%.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 was 1.8x in the fiscal year ending September 2026, remaining above 1x. Further improving the market valuation (PER) is an issue. PER was 12.7x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strengthen construction capabilities: promote the systematic organization and accumulation of knowledge
02Explore collaboration: seek to strengthen competitive advantages through alliances
03Business mix: gradually increase the proportion of the real estate-related business
04Deepen existing businesses and create synergies
05Promote M&A: expand the scale of managed operations and the earnings base
Plan assumptionsUncertain factors have been excluded from the target figures for the fiscal year ending September 2029. As upside potential from additional construction orders, M&A, stronger alliances and other factors, the company assumes additional revenue of ¥1.0–1.5 billion and additional operating profit of ¥150–200 million.
Segment targetSegment Electricity Business / Net Sales 7,438 Millions of yen / Operating profit Not disclosed, Segment Facilities Business / Net Sales 2,976 Millions of yen / Operating profit Not disclosed, Segment Electrical contracting business total / Net Sales 10,414 Millions of yen / Operating profit 945 Millions of yen / Operating profit margin 9.1%, Segment Real-Estate-Related Business / Net Sales 4,086 Millions of yen / Operating profit 505 Millions of yen / Operating profit margin 12.4%, Segment Other and adjustments / Net Sales 0 Millions of yen / Operating profit 0 Millions of yen
Risks identified by the company
Fluctuations in construction demand
Fluctuations in order timing, schedules and construction periods
Risk of overheating and subsequent adjustment in AI-related investment
Labor shortages and rising costs
Persistent shortage of skilled workers
Rising material and labor costs and delays in passing them through to prices
Intensifying competition for property management contracts
Competition over management quality and fees
Regional disparities in rental demand
Rising management and repair costs
Rising labor and material costs
Risk of declining profitability
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | Fiscal years ending September 2027 to September 2029 |
| Progress against the plan | Formulated |
| Sales Target | 13,000 Millions of yen → 14,500 Millions of yen（11.5%） |
| Operating profit target | 1,300 Millions of yen → 1,450 Millions of yen（11.5%） |
| Operating profit margin target | 10.0% → Approximately 10%（Approximately 0%） |
| Net income target | 758 Millions of yen → 830 Millions of yen（9.5%） |
| ROE target | 15.4% (actual for the fiscal year ended September 2026) → Approximately 19%（23.4%） |
| Payout ratio / DOE policy | The company uses a DOE (dividend on equity) of approximately 4%, based on consolidated shareholders' equity, as a guideline. Its future dividend policy will be determined after comprehensively considering financial soundness, growth investments, the business environment and cash flow conditions, among other factors. |
| Cost of capital | Cost of equity (COE): 9.9%. Breakdown: inverse of PER, 7.9%, plus expected growth rate, 2.0%. |
| Self-assessment of PBR and share price | PBR was 1.8x in the fiscal year ending September 2026, remaining above 1x. Further improving the market valuation (PER) is an issue. PER was 12.7x. |
| Total investment plan | Investments: ¥2,900 million (management allocation: ¥900 million, strategic investments: ¥1,500 million, and ordinary investments: ¥500 million). Total capital allocation over 3 fiscal years is ¥3,700 million. |
| Investment amount by sector | Field Management allocation (investment in people and DX investment) / Amount 900 Millions of yen, Field Strategic investments (new businesses, promotion of collaboration, M&A, etc.) / Amount 1,500 Millions of yen, Field Ordinary investments (machinery, equipment, etc.) / Amount 500 Millions of yen |
| Segment target | Segment Electricity Business / Net Sales 7,438 Millions of yen / Operating profit Not disclosed, Segment Facilities Business / Net Sales 2,976 Millions of yen / Operating profit Not disclosed, Segment Electrical contracting business total / Net Sales 10,414 Millions of yen / Operating profit 945 Millions of yen / Operating profit margin 9.1%, Segment Real-Estate-Related Business / Net Sales 4,086 Millions of yen / Operating profit 505 Millions of yen / Operating profit margin 12.4%, Segment Other and adjustments / Net Sales 0 Millions of yen / Operating profit 0 Millions of yen |
| Plan assumptions | Uncertain factors have been excluded from the target figures for the fiscal year ending September 2029. As upside potential from additional construction orders, M&A, stronger alliances and other factors, the company assumes additional revenue of ¥1.0–1.5 billion and additional operating profit of ¥150–200 million. |
| Key initiatives | Strengthen construction capabilities: promote the systematic organization and accumulation of knowledge, Explore collaboration: seek to strengthen competitive advantages through alliances, Business mix: gradually increase the proportion of the real estate-related business, Deepen existing businesses and create synergies, Promote M&A: expand the scale of managed operations and the earnings base |
| Results under the previous plan | Net Sales 11,000 / Operating profit 500 / ROE 10.3% → Net Sales 12,384 / Operating profit 1,213 / ROE 15.4%（Net Sales 12.6% / Operating profit 142.6% / ROE 49.5%） |
| Risks identified | Fluctuations in construction demand, Fluctuations in order timing, schedules and construction periods, Risk of overheating and subsequent adjustment in AI-related investment, Labor shortages and rising costs, Persistent shortage of skilled workers, Rising material and labor costs and delays in passing them through to prices, Intensifying competition for property management contracts, Competition over management quality and fees, Regional disparities in rental demand, Rising management and repair costs, Rising labor and material costs, Risk of declining profitability |
| Date of board resolution | 13 November 2026 |
| Publication date | 13 November 2026 |
Items this document does not state (5)
ROIC targetTreasury share acquisition policyNon-financial targetsReason for revision or withdrawalSize of the Target Market
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 medium-term plan prioritizes improving earning power and strengthening the business foundation in order to lead to further growth from the fiscal year ending September 2030 onward. The company will strengthen the double-engine model of its electrical contracting business and real estate-related business and build a new value-creation model.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.