Worth reading
61In 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
400
Yen (share price increase)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateNet Sales+14.3%
基準 17,500Target20,000million
Operating profit+17.1%
基準 2,050Target2,400million
Operating profit margin+2.0pt
基準 2,026Target2,028％
ROE+2.0pt
基準 2,026Target2,028％
ROIC+2.0pt
基準 2,026Target2,028％
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.
Net income for the current fiscal year¥1,468 million (actual for the fiscal year ended May 2026), ¥1,450 million (forecast for the fiscal year ending May 2027) → Not disclosed
Only the target level is shown because the current level for comparison was not provided.Statements about the use of capital
Payout ratio / DOE policyThe total payout ratio is targeted at approximately 60% and the dividend payout ratio at approximately 50%. The shareholder return policy has applied since the fiscal year ended May 2024, with the total payout ratio representing a near-term target. The plan for the fiscal year ending May 2028 also targets a total payout ratio of approximately 60% and a dividend payout ratio of approximately 50%. The DOE target is Not disclosed.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 will limit its holdings of treasury shares to approximately 10% of total shares issued and, in principle, cancel any excess each fiscal year. A fixed framework for the amount of treasury share acquisitions is Not disclosed. Treasury share acquisitions remain ongoing after June 2026.
Cost of capitalCost of shareholders’ equity of approximately 6.0%–8.0%. The Company compares the cost of shareholders’ equity with ROE, rather than using WACC.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 approximately 1.27x and PER approximately 12.5x as of 31 May 2026, representing a high valuation within the industry. The share price rose by approximately ¥400, from ¥745 when the medium-term management plan was announced (13 July 2023) to ¥1,148 as of 31 May 2026, an increase of approximately 1.5x.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Disaster prevention and mitigation, and national resilience
02Defense-related civil engineering
03Urban Development
04Urban redevelopment
05Environmental initiatives and the creation of a decarbonized society
06Smart cities and DX for urban development
07Business solutions and civil engineering asset management (including business process outsourcing and the rebuilding of aging condominiums)
08Strengthen new graduate recruitment
09Strengthen mid-career recruitment
10Build a workforce of 500 holders of technical qualifications
11Develop versatile engineers and promote multi-skilled workforces
12M&A with companies in the same industry
13Business alliances with companies in other industries
14Enhance timely disclosure and PR disclosure, and actively disclose information in English
15Hold online briefings
16Hold IR seminars
17Conduct individual IR meetings
18Introduce shareholder and investor surveys
Plan assumptionsCore operations are expected to grow steadily, Demand is expected to increase for disaster prevention and mitigation, national resilience and defense-related civil engineering, Private-sector demand for industrial and logistics sites is expected to increase as manufacturing returns to Japan and foreign companies expand into Japan, The First Medium-Term Implementation Plan for National Resilience is expected to involve slightly more than ¥20 trillion over FY2026–FY2030, Revenue is expected to increase through growth in the number of engineers, revisions to engineer billing rates and higher productivity
Non-financial targetsIndicator Consolidated headcount / Target value 650 people / Timing Fiscal year ending May 2028, Indicator Consolidated qualified personnel / Target value 650 people / Timing Fiscal year ending May 2028, Indicator Professional Engineers / Target value 300 people / Timing Fiscal year ending May 2028, Indicator RCCM / Target value 270 people / Timing Fiscal year ending May 2028, Indicator First-class registered architects / Target value 30 people / Timing Fiscal year ending May 2028, Indicator APEC Engineers / Target value 50 / Timing Fiscal year ending May 2028, Indicator New graduate hiring / Target value Approximately 30–35 people per year / Timing Mid-term management plan period, Indicator Experienced hires / Target value Approximately 80 people (70 in technical functions and 10 in sales, general and administrative functions) / Timing Mid-term management plan period
Size of the Target MarketMarket Total construction investment in Japan / Scale ¥75 trillion (FY2025) / Growth rate/comparison 79% of FY2010 levels; 89% of FY1992 levels / Source Not disclosed, Market National resilience-related market / Scale Slightly more than ¥20 trillion (FY2026–FY2030) / Growth rate/comparison Not disclosed / Source Ministry of Land, Infrastructure, Transport and Tourism, Market Defense spending / Scale Approximately ¥11 trillion in fiscal 2027 / Growth rate/comparison Equivalent to 2% of GDP / Source Overview of the FY2026 budget of the Defense Agency
Risks identified by the company
Various risks and uncertainties
Intensifying Competition for Talent
Cyber risk
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan |
| Plan period | Fiscal years ending May 2024 through May 2028 (5-year period) |
| Progress against the plan | Annual update |
| Sales Target | ¥17,500 million (forecast for the fiscal year ending May 2027), ¥17,011 million (actual for the fiscal year ended May 2026) → ¥20,000 million (plan for the fiscal year ending May 2028) |
| Operating profit target | ¥2,050 million (forecast for the fiscal year ending May 2027), ¥1,965 million (actual for the fiscal year ended May 2026) → ¥2,400 million (plan for the fiscal year ending May 2028) |
| Operating profit margin target | 11.6% (actual for the fiscal year ended May 2026) → 12% (plan for the fiscal year ending May 2028) |
| Net income target | ¥1,468 million (actual for the fiscal year ended May 2026), ¥1,450 million (forecast for the fiscal year ending May 2027) → Not disclosed |
| ROE target | 10.9% (actual for the fiscal year ended May 2026) → 12% (plan for the fiscal year ending May 2028) |
| ROIC target | 9.9% (actual for the fiscal year ended May 2026) → 12% (plan for the fiscal year ending May 2028) |
| Payout ratio / DOE policy | The total payout ratio is targeted at approximately 60% and the dividend payout ratio at approximately 50%. The shareholder return policy has applied since the fiscal year ended May 2024, with the total payout ratio representing a near-term target. The plan for the fiscal year ending May 2028 also targets a total payout ratio of approximately 60% and a dividend payout ratio of approximately 50%. The DOE target is Not disclosed. |
| Treasury share acquisition policy | The Company will limit its holdings of treasury shares to approximately 10% of total shares issued and, in principle, cancel any excess each fiscal year. A fixed framework for the amount of treasury share acquisitions is Not disclosed. Treasury share acquisitions remain ongoing after June 2026. |
| Cost of capital | Cost of shareholders’ equity of approximately 6.0%–8.0%. The Company compares the cost of shareholders’ equity with ROE, rather than using WACC. |
| Self-assessment of PBR and share price | PBR was approximately 1.27x and PER approximately 12.5x as of 31 May 2026, representing a high valuation within the industry. The share price rose by approximately ¥400, from ¥745 when the medium-term management plan was announced (13 July 2023) to ¥1,148 as of 31 May 2026, an increase of approximately 1.5x. |
| Non-financial targets | Indicator Consolidated headcount / Target value 650 people / Timing Fiscal year ending May 2028, Indicator Consolidated qualified personnel / Target value 650 people / Timing Fiscal year ending May 2028, Indicator Professional Engineers / Target value 300 people / Timing Fiscal year ending May 2028, Indicator RCCM / Target value 270 people / Timing Fiscal year ending May 2028, Indicator First-class registered architects / Target value 30 people / Timing Fiscal year ending May 2028, Indicator APEC Engineers / Target value 50 / Timing Fiscal year ending May 2028, Indicator New graduate hiring / Target value Approximately 30–35 people per year / Timing Mid-term management plan period, Indicator Experienced hires / Target value Approximately 80 people (70 in technical functions and 10 in sales, general and administrative functions) / Timing Mid-term management plan period |
| Plan assumptions | Core operations are expected to grow steadily, Demand is expected to increase for disaster prevention and mitigation, national resilience and defense-related civil engineering, Private-sector demand for industrial and logistics sites is expected to increase as manufacturing returns to Japan and foreign companies expand into Japan, The First Medium-Term Implementation Plan for National Resilience is expected to involve slightly more than ¥20 trillion over FY2026–FY2030, Revenue is expected to increase through growth in the number of engineers, revisions to engineer billing rates and higher productivity |
| Key initiatives | Disaster prevention and mitigation, and national resilience, Defense-related civil engineering, Urban Development, Urban redevelopment, Environmental initiatives and the creation of a decarbonized society, Smart cities and DX for urban development, Business solutions and civil engineering asset management (including business process outsourcing and the rebuilding of aging condominiums), Strengthen new graduate recruitment, Strengthen mid-career recruitment, Build a workforce of 500 holders of technical qualifications, Develop versatile engineers and promote multi-skilled workforces, M&A with companies in the same industry, Business alliances with companies in other industries, Enhance timely disclosure and PR disclosure, and actively disclose information in English, Hold online briefings, Hold IR seminars, Conduct individual IR meetings, Introduce shareholder and investor surveys |
| Size of the Target Market | Market Total construction investment in Japan / Scale ¥75 trillion (FY2025) / Growth rate/comparison 79% of FY2010 levels; 89% of FY1992 levels / Source Not disclosed, Market National resilience-related market / Scale Slightly more than ¥20 trillion (FY2026–FY2030) / Growth rate/comparison Not disclosed / Source Ministry of Land, Infrastructure, Transport and Tourism, Market Defense spending / Scale Approximately ¥11 trillion in fiscal 2027 / Growth rate/comparison Equivalent to 2% of GDP / Source Overview of the FY2026 budget of the Defense Agency |
| Risks identified | Various risks and uncertainties, Intensifying Competition for Talent, Cyber risk |
| Publication date | 31 July 2026 |
Items this document does not state (6)
Total investment planInvestment amount by sectorSegment targetResults under the previous planReason for revision or withdrawalDate 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.To achieve sustainable growth and enhance corporate value over the medium to long term. In addition, to further strengthen shareholder returns in light of improvements in earnings capacity and technological capabilities and the strengthening of the financial position.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.