日本国土開発 Research Memo (6): Targets ROE of 8.0% and operating profit of ¥9 billion for the fiscal year ending May 2028

Assuming a recovery in the domestic economy and increased investment related to decarbonization, 日本国土開発 has formulated Medium-Term Management Plan 2027, setting targets of 8.0% for ROE and ¥9 billion for operating profit for the fiscal year ending May 2028, the final year of the plan, based on the fiscal year ending May 2025. The company has stated its policy of pursuing growth investment and enhanced shareholder returns in parallel to achieve its long-term vision.

By business segment, the civil engineering business is targeting revenue of ¥50 billion and segment profit of ¥2.3 billion, while the construction business is targeting revenue of ¥87 billion and segment profit of ¥3.5 billion. Both businesses aim for stable growth by securing appropriate margins on orders and thoroughly managing quality and construction.

The real estate and energy business will focus on expanding recurring revenue and securing transaction-based revenue, with total gross profit of approximately ¥14 billion and segment profit of approximately ¥12 billion projected over the 3-year period. The company plans to diversify its financing methods and improve long-term stability, including by targeting cumulative generation capacity of 200 MW by 2030.

As new businesses, the company is promoting the full-scale sale of ANION, the development of stable earnings from 福島エコクリート, and the commercialization of regional co-creation projects. ANION will manufacture and sell ADOX powder at its Minamisoma Plant, with a target of contributing to earnings from 2028 onward.

To strengthen its management platform, the company is advancing initiatives along three axes: human resources, DX and finance. It has presented a specific plan to invest a total of ¥74 billion, based on equity of ¥72 billion in fiscal 2028, while maintaining an equity ratio of at least 40% and a D/E ratio of no more than 0.7 times.