OYO Corporation (9755) Stock Price

Market cap
¥71.9B
P/E ratio
17.4x
Applied Geology provides disaster prevention, infrastructure resilience, and environmental solutions through 26 subsidiaries across domestic and international markets.

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Business Overview

Applied Geology Co., Ltd. operates three main business segments: Disaster Prevention and Infrastructure, Environment and Energy, and International Business. These operations are conducted through the company, 26 subsidiaries, and 4 affiliated companies.

In the Disaster Prevention and Infrastructure segment, Applied Geology and its domestic affiliates provide solutions to strengthen the resilience of society and businesses against natural disasters such as earthquakes, tsunamis, and heavy rainfall. The company also offers services supporting the maintenance and management of social infrastructure.

In the Environment and Energy segment, Applied Geology and its domestic subsidiaries provide solutions supporting environmental conservation and mitigation of environmental impact. Additionally, the company offers services supporting the development, preservation, and effective utilization of resources and energy.

In the International Business segment, Applied Geology's overseas subsidiaries provide products and solutions related to infrastructure development and maintenance, disaster prevention, and resource and energy development in overseas markets. This enables the company to expand its business presence in international markets.

Management Policy

Oyo Geotechnical Co., Ltd. has established a long-term vision called "OYO Sustainability Vision 2030" and a medium-term management plan called "OYO Medium-Term Management Plan 2026" to realize a sustainable society. Through these initiatives, the company aims to enhance social and environmental value while improving business profitability, pursuing sustainable growth toward 2030.

The "OYO Medium-Term Management Plan 2026" is based on three core policies: advancing segment strategy, optimizing the balance sheet, and strengthening sustainable management. These efforts are designed to improve operational efficiency and profitability while contributing to a sustainable society.

Specifically, the company is reorganizing into three segments—Disaster Prevention and Infrastructure, Environment and Energy, and International—to maximize group synergies. The company is also strengthening products and services that meet market needs through innovation development investments.

To improve capital efficiency, the company is promoting the sale of non-core assets and reducing the accounts receivable turnover period. As a shareholder return measure, the company targets a dividend payout ratio of 50% or higher and continues to conduct flexible share buybacks.

In strengthening sustainable management, the company is advancing human resources strategy and work style reforms to achieve both "ease of work" and "sense of purpose." The company is also addressing climate change risks and promoting decarbonization. Additionally, the company is strengthening governance and ensuring thorough compliance.

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