JDC CORPORATION (1887) Stock Price

Nippon Dohoku Development is a comprehensive construction company with civil engineering and building construction at its core. The company undertakes social infrastructure projects including dams, bridges, and roads, as well as construction of public facilities, offices, and logistics facilities. To improve on-site productivity, the company actively implements proprietary disposal site technologies, waste reduction methods, introduces construction machinery, and conducts surveying using drones. Additionally, it operates businesses in manufacturing and leasing construction equipment, as well as construction material recycling.

Key customers include national and local governments, public project commissioners, private developers and corporations, and electric power companies that purchase electricity from the company's solar power generation operations. Revenue is primarily derived from civil engineering and building construction contracts, with complementary contributions from related businesses including real estate leasing, solar power generation sales, and sales and leasing of construction machinery.

The company operates three main business divisions: Civil Engineering, Building Construction, and Related Operations. The Civil Engineering division handles land development, reconstruction projects, marine work, and ground improvement. The Building Construction division provides design, construction, renovation services, and specialized solutions such as food factory construction and seismic isolation systems. The Related Operations division diversifies the revenue base through real estate development, renewable energy projects, and cemetery operations.

Under its "Medium-Term Management Plan 2027," the company aims to rebuild its profit-generating operational foundation and achieve "a return to growth trajectory" as the core pillar of its growth strategy. Financial targets for the final fiscal year (May 2028) include a return on equity (ROE) of 8.0%, operating profit of 9.0 billion yen, and planned investments totaling 74.0 billion yen over three years. The company also prioritizes financial soundness, maintaining an equity ratio of 40% or above and a debt-to-equity ratio (D/E) of 0.7x or below throughout the period, with a target of securing approximately 72.0 billion yen in equity by the final fiscal year.

Priority investment areas focus on expanding related businesses, positioning real estate and energy operations as growth drivers. In energy, the company plans to expand its self-developed power generation capacity from the current 127 MW to 200 MW by 2030, including enhancing existing projects, deploying rooftop solar installations, and considering future entry into battery storage. In real estate, the company differentiates through acquiring high-quality income-producing properties, expanding asset types, securing stable recurring revenue through land subdivision projects, and generating flow revenue through timely sales of development properties.

For new market development and business expansion, the company plans to serve as a "regional issue-solving partner," entering local revitalization and infrastructure renewal with focus on disaster prevention, mitigation, and reconstruction. The civil engineering business aims to return to stable operations by strengthening bid screening rigor and construction management systems, concentrating on core competencies. Additionally, leveraging real estate and energy as pillars, the company will support regional resource creation as a new business, building long-term revenue foundations through asset value enhancement and electricity sales income.

Technology innovation efforts prioritize on-site productivity improvement and labor reduction, including drone surveying, waste reduction technologies and proprietary disposal site techniques, and enhanced construction machinery capabilities. Operationally, the company is introducing artificial intelligence (AI) and work automation tools, improving efficiency through design-construction data integration (BIM/CIM) and automated construction using information technology, while advancing workforce development to enhance all employees' digital capabilities. Additionally, the company is pursuing non-financial value enhancement, including obtaining Science Based Targets net-zero certification (SBTi net-zero) toward achieving carbon neutrality by 2050.