OHMORI CO.,LTD. (1844) Stock Price

Taiseikogyo is a corporate group engaged in construction, real estate, OLY (equipment leasing), and telecommunications businesses. The company primarily undertakes construction projects and施工, while also providing a wide range of services including real estate sales and leasing, and solar power generation equipment sales.

The company serves diverse customers including public institutions, private developers, telecommunications operators, and facility management companies. Revenue is composed of both one-time earnings from construction contracts and stable recurring income from real estate leasing, equipment leasing, and telecommunications line maintenance services.

Operations are divided into four business segments: construction, real estate, OLY, and telecommunications. The construction division handles projects from bidding through completion via subsidiaries. The real estate division conducts sales and leasing, along with solar equipment sales and closet rental services. The OLY division manages equipment leasing and steel frame processing, while the telecommunications division operates line maintenance and management through a subsidiary.

The company aims to maintain an operating profit margin of 7% or higher over the medium term, balancing profit improvement with growth investments. Construction demand is expected to remain stable due to disaster prevention and infrastructure renewal needs. The company plans to expand total construction profit by increasing the proportion of high-margin mechanized tunneling work. Additionally, it will pursue project schedule optimization and cost reduction to stabilize earnings across the business.

Priority investments focus on strengthening construction capabilities and securing talent. Specifically, the company will expand its operational scale through acquisitions of construction firms with engineering expertise and business foundations in the Kanto region, reinforcing its order intake system centered on mechanized tunneling work. For engineer recruitment and development, the company is implementing diverse strategies including continued employment of retirees, referral hiring, expanded recruitment of women and foreign nationals, and broadening new graduate hiring beyond civil engineering disciplines. It is also promoting technical succession through support for first-class civil engineering certification.

In new market development, the company prioritizes expansion of real estate and OLY business operations. In real estate, it will proceed with sales of held properties while continuing to acquire apartments and condominiums with high expected returns, improving occupancy rates to stabilize rental income. For OLY operations, beyond strengthening sales in the Tohoku and Kanto regions, the company plans to expand distribution channels south of the Kanto area based in Nagoya, actively promoting OLY method adoption among government agencies and public institutions.

The company is also advancing technological innovation and business sophistication. In telecommunications, it will increase communication technician staffing and enhance skills training, addressing revenue decline risks through new maintenance and management projects and new work areas. Additionally, the company will strengthen sustainable management practices and internal controls and compliance frameworks, pursuing long-term corporate value enhancement through differentiation based on accumulated technical expertise.