【JP:9163】Stock Price

Narel Group is a company specializing in staffing services for the construction and IT industries. Operating as a pure holding company overseeing four subsidiaries, the company has set a mission to solve Japan's critical shortage of specialized talent and transform the nation into a "problem-solving advanced country." The company operates nationwide, providing dispatch services for highly skilled professionals including construction site managers, CAD drafters, and IT systems engineers.

The company's revenue is heavily weighted toward construction. For the fiscal year ending October 2025, construction solutions generated 21.6 billion yen (89.5% of sales) while IT solutions generated 2.5 billion yen (10.5%). In construction, the company targets major general contractors and specialized construction firms as primary clients, acquiring orders through direct sales to site managers. In IT, the company supplies personnel to development projects for telecommunications operators and financial institutions as end users.

The business is divided into two main segments. The construction solutions segment is handled by subsidiary World Corporation, which provides engineer dispatch and construction drawing services, while Contraft and the National Construction Personnel Association operate job sites and placement services for skilled trades. The IT solutions segment is managed by ATJC, which provides systems engineer dispatch and custom system development. The company has built a proprietary talent development system centered on hiring inexperienced workers, ensuring a continuous supply of specialized professionals.

Narel Group is pursuing sustainable growth through engineer dispatch services in the construction and IT sectors, aiming to address a critical shortage of specialized talent. The group has formulated a five-year medium-term management plan titled "Change&Growth2030," with the fiscal year ending October 2026 as its first year. By the fiscal year ending October 2030, the group targets 8,000 engineers on its payroll, consolidated revenue of 50 billion yen, operating profit of 5 billion yen, an operating profit margin of 10.0%, and ROE of 20% or above. These numerical targets are set under the fundamental policy of supporting the future of the construction industry through both human resources and technology.

As priority investment areas, the company is advancing business operations centered on four growth strategies. First, "enhancing the competitiveness of core operations through strengthened human resources and organizational capabilities" aims to expand hiring and reduce turnover through a unique recruitment strategy focused on hiring inexperienced workers and by building the "Zero Pro Growth Cycle," which supports continuous development of engineers. Second, "promoting construction DX to support productivity improvements at construction sites" involves collaborating with construction DX companies and developing talent with digital skills to support customers' DX initiatives.

For new market development, the company is focusing on "expanding the skilled trades introduction business through strengthened and evolved matching platforms." Through the National Construction Human Resources Association, a general incorporated association holding a paid employment placement license for construction work—a permit granted to only three organizations nationwide—the company has established a unique position providing job placement for construction skilled trades, where dispatch services are prohibited. By operating "Job Ken Work," a job search website for skilled trades workers, the company has entered a large market of 3.03 million construction skilled trades workers and is also promoting its "Skilled Trades Scout" direct recruitment service.

As its fourth growth strategy, the company positions "improving productivity through digital utilization and business process reform" as a technological innovation initiative. In response to growing ICT adoption needs in the construction industry, the company provides construction DX support services through specialized teams, including surveying with drones, point cloud measurement using 3D laser scanners, and utilization of drawing management and information-sharing tools. Additionally, the company is advancing its own business process optimization through digital initiatives including AI utilization, aiming to build a framework that simultaneously achieves business expansion and productivity improvement.