WATANABE SATO CO., LTD. (1807) Stock Price

Sato Watanabe's primary business is contracting for paving and civil engineering works, and it also manufactures and sells related products. The company group consists of 5 consolidated subsidiaries, 1 non-consolidated subsidiary, 1 affiliated company accounted for using the equity method, and 3 affiliated companies not accounted for using the equity method.

In the construction division, Sato Watanabe undertakes and executes paving and civil engineering projects, while consolidated subsidiaries Takushin Construction, Soseishin, Hironaga Paving, Asunaro Road, and Koishikawa Construction conduct similar operations. Non-consolidated subsidiary SW Techno operates a machinery rental business, from which Sato Watanabe rents equipment.

In the products and sales division, Sato Watanabe and consolidated subsidiaries Hironaga Paving and Asunaro Road manufacture and sell asphalt mixtures and related products. Hironaga Paving buys and sells these products with other group companies, and Sato Watanabe sells products to Takushin Construction, Soseishin, and Koishikawa Construction.

While Sato Watanabe explains its business operations by dividing them into the construction division and the products and sales division, the sold products form part of the construction division. Therefore, in segment reporting, the business is treated as a single segment under construction operations, and detailed segment information is omitted.

Satoh Watanabe is committed to sustainable growth and prioritizes rapid adaptation to changes in the business environment. The company actively invests in technology development, human capital development, and capital expenditures, aiming to remain a company that consistently meets stakeholder expectations. Through the pursuit of environmentally friendly technologies, the company is committed to contributing to society as a core management principle.

The company has formulated a medium-term management plan for 2024 through 2026, with the theme of "fostering a culture of transformation and learning, and advancing sustainability initiatives." The plan establishes three fundamental policies: improving profitability, strengthening capital and financial strategy, and promoting ESG management, which the entire group is working to implement. In particular, the company aims to strengthen corporate governance and ensure thorough compliance to realize fair business practices.

As a specific growth strategy, Satoh Watanabe is enhancing technical capabilities and sales strength in both its construction division and product sales division. In the construction division, the company is advancing proposal capabilities for public works projects, promoting digital transformation, and strengthening construction systems. In the product sales division, the company is strengthening sales of warm-mix asphalt and value-added products.

In strengthening capital and financial strategy, the company maintains financial soundness while making growth and capital investments and enhancing shareholder returns. Specifically, the company is advancing investments in human capital, construction digital transformation, and initiatives contributing to a decarbonized society. Additionally, the company maintains a policy of implementing annual dividends of 80 yen or more for the three-year period from 2024 to 2026, ensuring stable dividend payments.

Satoh Watanabe has set numerical targets for its medium-term management plan: net sales of 420 million yen or more, operating profit of 2.0 billion yen or more, net income of 1.3 billion yen or more, and ROE of 6.5% or more. By achieving these targets, the company aims to realize sustainable growth and establish a stable management foundation.