TEKKEN CORPORATION (1815) Stock Price

Market cap
¥73.7B
P/E ratio
15.6x
Tekken Construction provides civil engineering, building construction, and real estate services across Japan and overseas through an integrated network of subsidiaries.

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Business Overview

Tekken Construction operates primarily through three business segments: civil engineering, building construction, and real estate. In addition, the company engages in related ancillary services and other business operations. These businesses are managed by Tekken Construction and its subsidiaries and affiliated companies.

In the civil engineering segment, Tekken Construction performs civil engineering work and procures construction equipment and materials from Tekken Kogyo and Dig. Specialized construction work is handled by affiliated companies including J-Tech and Tetsumeikensetu, while overseas operations are conducted by THANH PHAT CONSTRUCTION WORK JOINT STOCK COMPANY.

In the building construction segment, Tekken Construction undertakes building construction projects and sources equipment and materials from Tekken Kogyo and Dig. Design services are provided by Al. Partners Architectural Design. This integrated approach enables the company to offer comprehensive services from design through construction.

In the real estate business, Tekken Construction, Tekken Kogyo, and Tekken Properties engage in property sales, leasing, and land development. These activities aim to maximize land utilization and enhance real estate value, while contributing to regional development.

As ancillary services, Tekken Kogyo provides equipment and material sales and security services related to civil and building construction, while Dig handles equipment and material sales. Tekken Properties offers administrative outsourcing services to support construction efficiency. These services facilitate smooth project execution.

Other business operations include TK Partners, which provides education and support services for construction engineers, and Farm T.S., which operates a strawberry agritourism farm. TK Aqua Green develops small hydroelectric power generation projects, contributing to renewable energy adoption. These diverse operations address varied market needs.

Management Policy

Tekken Construction formulated its "Medium-Term Management Plan 2028" in April 2024, committing to addressing a sustainable future society. This five-year growth strategy prioritizes strengthening productivity and profit generation capacity, actively investing in growth areas, enhancing human capital, advancing ESG initiatives, and shifting toward management focused on capital efficiency.

Under this medium-term plan, Tekken Construction targets an ROE of 8% or higher and consolidated operating profit of 8 billion yen or more by fiscal year 2028. The company has also established non-financial KPIs including CO2 emission reductions, improved safety, and enhanced employee engagement, pursuing sustainable growth. Through these efforts, Tekken Construction aims to fulfill its social responsibilities while increasing corporate value.

Tekken Construction is advancing selective order portfolio management and streamlining on-site operations to ensure quality and safety. The company leverages a talent management system to develop employees and optimize their placement. Through recruitment initiatives, DE&I efforts, and measures to achieve work-life balance, the company seeks to improve employee engagement.

In fiscal year 2025, Tekken Construction will continue activities based on its medium-term plan while adapting to external environmental changes. The company prioritizes strengthening its revenue base, balancing productivity improvements with work style reform, and advancing ESG management, aiming to achieve sustainable corporate growth across the entire group.

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