DAIHO CORPORATION (1822) Stock Price

Taihō Construction operates primarily in the construction sector, organized into three business segments: civil engineering, building construction, and other operations. These segments align with the segment information presented in the consolidated financial statements.

In civil engineering, Taihō Construction serves as the primary operator, with subsidiary Morimoto-gumi handling construction and construction support. This segment focuses on civil engineering projects including infrastructure development and public works.

In building construction, Taihō Construction performs building construction work, while Morimoto-gumi provides construction and support services. Additionally, Thai Taihō operates building construction projects in the Kingdom of Thailand, enabling the company to serve international projects.

Other operations include real estate, painting and coating services, and construction equipment leasing. Taihō Real Estate handles real estate operations, Taihō Painting & Industrial handles painting and coating work, and Shinwa Machinery handles construction equipment leasing, providing diversified services across multiple sectors.

Taihō Construction is advancing its growth strategy based on its Medium-Term Management Plan (fiscal 2023-2027), formulated in May 2023. The plan establishes two core policies: "strengthening human capital management" and "transforming business structure," supported by corresponding investment strategies. The company is prioritizing employee engagement, promoting digital transformation and R&D, and investing in talent development to drive transformation toward sustainable construction practices.

Taihō Construction has set targets for fiscal 2027 of 160 billion yen in revenue, 6.7 billion yen in operating profit, and 7.0% ROE. To achieve these goals, the company is strengthening its core civil engineering and building construction businesses, with particular focus on meeting demand for underground storage facilities utilizing shield tunneling and pneumatic caisson methods. The company is also actively pursuing new business areas including PPP projects, real estate development, and ESG-related initiatives.

To adapt to industry changes, Taihō Construction is enhancing internal controls and improving order management. These efforts aim to establish appropriate construction systems and strengthen monitoring frameworks to secure and improve profitability. As a shareholder return policy, the company has committed to raising its dividend payout ratio to 70% or higher, with plans for flexible returns based on business performance and financial conditions.

Regarding cash allocation, Taihō Construction plans to generate funds through operating cash flow and utilization of interest-bearing debt, allocating resources toward shareholder returns and strategic investments for enhancing corporate value. This approach supports management focused on capital costs and sustainable growth.