Worth reading
76Important
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
2999
¥ millionWording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+17.6%
基準 17,001Target20,000million
Operating profit+26.3%
基準 1,029Target1,300million
ROE+0.3pt
基準 5.7Target6％
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).
What happened to the previous planNet Sales 17,000 / Operating profit 1,050 / Operating profit margin 6.4 / ROE 5 / Free cash flow 1,500 → Net Sales 17,001 / Operating profit 1,029 / Operating profit margin 6.1 / ROE 5.7 / Free cash flow 2,286
Total investment plan¥2,800 million (business infrastructure investment + strategic investment)
Investment amount by sectorField Business infrastructure investment and strategic investment / Amount ¥2,800 million / Breakdown Capital investment in the latest measurement equipment, Systems and DX investment, Human Capital Investment, M&A and alliance investment
Statements about the use of capital
Payout ratio / DOE policyFrom the fiscal year ending July 2027, DOE (dividend on equity) will be set at a floor of 3.0%, in addition to a target dividend payout ratio of 60%.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 policyWithin the ¥2,200 million framework for shareholder returns under FY2027–FY2029, the company plans to make flexible share repurchases after comprehensively considering share liquidity, projected future funding needs and share price trends.
Cost of capitalCAPM 7.3% (estimate)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 remains below 1.0x. Actual PBR for FY2026 was 0.67x, and the company is targeting PBR of at least 1.0x in FY2029.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Optimizing the Business Portfolio
02Strengthening the growth platform of the construction consulting business
03Promoting Human Capital Management
04Improving recruitment competitiveness
05Developing younger engineers through the transfer of technical expertise
06M&A (construction consulting and adjacent areas)
07Expanding geographic coverage and technical fields
08Broaden the base of orders from private-sector customers and through PPP/PFI and other channels
09Restricting new openings and operations, with a policy of gradually scaling back
10Plans to withdraw from the business during the medium-term plan period
Plan assumptionsDemand is expected to increase for disaster prevention and mitigation-related services and infrastructure maintenance., While order prices are rising, the number of orders is trending downward and competition is intensifying., Constraints on production capacity due to a shortage of engineers will continue., Cost levels will rise due to inflation, higher personnel expenses and other factors., The business has high resilience to changes in the macroeconomic environment, including higher interest rates and foreign exchange movements.
Segment targetSegment Construction consulting / Net Sales FY2026 actual 14,207 / FY2029 Target 17,200 / CAGR 6.6％ / Operating profit FY2026 actual 1,113 / FY2029 Target 1,300 / CAGR 5.3％, Segment Sports / Net Sales FY2026 actual 774 / FY2029 Target 800 / CAGR 1.1％ / Operating profit FY2026 actual 20 / FY2029 Target 15 / CAGR ▲9.1％, Segment Aquariums / Net Sales FY2026 actual 1,759 / FY2029 Target 2,000 / CAGR 4.4％ / Operating profit FY2026 actual 97 / FY2029 Target 90 / CAGR ▲2.5％, Segment Other Businesses (withdrawal policy) / Net Sales FY2026 actual 259 / FY2029 Target 0 / Operating profit FY2026 actual 12 / FY2029 Target 0, Segment Consolidated total / Net Sales FY2026 actual 17,001 / FY2029 Target 20,000 / CAGR 5.6％ / Operating profit FY2026 actual 1,029 / FY2029 Target 1,300 / CAGR 8.1％
Non-financial targetsIndicator New + South Kanto + Tokai order value / Target value At least 2,500M / Timing FY2029, Indicator Price competition ratio / Target value 50% or less / Timing FY2029, Indicator Number of qualified personnel / Target value At least 220 people / Timing FY2029, Indicator Subcontracting ratio / Target value 30% or less / Timing FY2029
Risks identified by the company
Intensifying competition to recruit engineers
Constraints on production capacity due to a shortage of engineers
Declining order volumes and intensifying competition
Rising cost levels due to inflation, higher personnel expenses and other factors
Medium- to long-term growth prospects and business risks for the aquarium business
Competition from low-price gyms
Changes in the macroeconomic environment, including higher interest rates and foreign exchange movements
Future changes to accounting standards, tax systems and other regulations and systems
Risks and uncertainties related to forward-looking projections
Reason for revision or withdrawal
Based on the results and lessons learned from the previous medium-term management plan, the company designated the next 3 years as a period of transformation. In light of stagnation in non-core businesses, slowing revenue growth and issues with group management functions, it will consider the future role of non-core businesses and reflect in the new medium-term management plan the achievement of high-profit growth through the deepening and expansion of the construction consulting business, as well as streamlining through the renewal of the group board structure and organizational restructuring.
| Item | Details |
|---|---|
| Plan name | Second Medium-Term Management Plan (FY2027–FY2029) |
| Plan period | Fiscal years ending July 2027 through July 2029 (3 years) |
| Progress against the plan | Formulated |
| Sales Target | ¥17,001 million → ¥20,000 million（+17.6%） |
| Operating profit target | ¥1,029 million → ¥1,300 million（+26.3%） |
| ROE target | 5.7 ％ → 6 ％（+5.3%） |
| Payout ratio / DOE policy | From the fiscal year ending July 2027, DOE (dividend on equity) will be set at a floor of 3.0%, in addition to a target dividend payout ratio of 60%. |
| Treasury share acquisition policy | Within the ¥2,200 million framework for shareholder returns under FY2027–FY2029, the company plans to make flexible share repurchases after comprehensively considering share liquidity, projected future funding needs and share price trends. |
| Cost of capital | CAPM 7.3% (estimate) |
| Self-assessment of PBR and share price | PBR remains below 1.0x. Actual PBR for FY2026 was 0.67x, and the company is targeting PBR of at least 1.0x in FY2029. |
| Total investment plan | ¥2,800 million (business infrastructure investment + strategic investment) |
| Investment amount by sector | Field Business infrastructure investment and strategic investment / Amount ¥2,800 million / Breakdown Capital investment in the latest measurement equipment, Systems and DX investment, Human Capital Investment, M&A and alliance investment |
| Segment target | Segment Construction consulting / Net Sales FY2026 actual 14,207 / FY2029 Target 17,200 / CAGR 6.6％ / Operating profit FY2026 actual 1,113 / FY2029 Target 1,300 / CAGR 5.3％, Segment Sports / Net Sales FY2026 actual 774 / FY2029 Target 800 / CAGR 1.1％ / Operating profit FY2026 actual 20 / FY2029 Target 15 / CAGR ▲9.1％, Segment Aquariums / Net Sales FY2026 actual 1,759 / FY2029 Target 2,000 / CAGR 4.4％ / Operating profit FY2026 actual 97 / FY2029 Target 90 / CAGR ▲2.5％, Segment Other Businesses (withdrawal policy) / Net Sales FY2026 actual 259 / FY2029 Target 0 / Operating profit FY2026 actual 12 / FY2029 Target 0, Segment Consolidated total / Net Sales FY2026 actual 17,001 / FY2029 Target 20,000 / CAGR 5.6％ / Operating profit FY2026 actual 1,029 / FY2029 Target 1,300 / CAGR 8.1％ |
| Non-financial targets | Indicator New + South Kanto + Tokai order value / Target value At least 2,500M / Timing FY2029, Indicator Price competition ratio / Target value 50% or less / Timing FY2029, Indicator Number of qualified personnel / Target value At least 220 people / Timing FY2029, Indicator Subcontracting ratio / Target value 30% or less / Timing FY2029 |
| Plan assumptions | Demand is expected to increase for disaster prevention and mitigation-related services and infrastructure maintenance., While order prices are rising, the number of orders is trending downward and competition is intensifying., Constraints on production capacity due to a shortage of engineers will continue., Cost levels will rise due to inflation, higher personnel expenses and other factors., The business has high resilience to changes in the macroeconomic environment, including higher interest rates and foreign exchange movements. |
| Key initiatives | Optimizing the Business Portfolio, Strengthening the growth platform of the construction consulting business, Promoting Human Capital Management, Improving recruitment competitiveness, Developing younger engineers through the transfer of technical expertise, M&A (construction consulting and adjacent areas), Expanding geographic coverage and technical fields, Broaden the base of orders from private-sector customers and through PPP/PFI and other channels, Restricting new openings and operations, with a policy of gradually scaling back, Plans to withdraw from the business during the medium-term plan period |
| Results under the previous plan | Net Sales 17,000 / Operating profit 1,050 / Operating profit margin 6.4 / ROE 5 / Free cash flow 1,500 → Net Sales 17,001 / Operating profit 1,029 / Operating profit margin 6.1 / ROE 5.7 / Free cash flow 2,286 |
| Reason for revision or withdrawal | Based on the results and lessons learned from the previous medium-term management plan, the company designated the next 3 years as a period of transformation. In light of stagnation in non-core businesses, slowing revenue growth and issues with group management functions, it will consider the future role of non-core businesses and reflect in the new medium-term management plan the achievement of high-profit growth through the deepening and expansion of the construction consulting business, as well as streamlining through the renewal of the group board structure and organizational restructuring. |
| Risks identified | Intensifying competition to recruit engineers, Constraints on production capacity due to a shortage of engineers, Declining order volumes and intensifying competition, Rising cost levels due to inflation, higher personnel expenses and other factors, Medium- to long-term growth prospects and business risks for the aquarium business, Competition from low-price gyms, Changes in the macroeconomic environment, including higher interest rates and foreign exchange movements, Future changes to accounting standards, tax systems and other regulations and systems, Risks and uncertainties related to forward-looking projections |
| Date of board resolution | 11 September 2026 |
| Publication date | 11 September 2026 |
Items this document does not state (4)
Operating profit margin targetNet income targetROIC targetSize 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.Based on the results and lessons learned from the previous medium-term management plan, the company aims to review its business portfolio, deepen and expand the construction consulting business, develop human resources and reform group management functions. Under the previous plan, stagnation in the aquarium and sports businesses, slowing revenue growth and insufficient synergies among group operating companies were identified as issues.
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