OHBA CO.,LTD. (9765) Stock Price

Ohba is a comprehensive construction consulting firm with core operations in surveying, design, and consulting services for public infrastructure development and private facility projects. The company provides integrated services including surveying and geographic information systems, environmental solutions, urban planning, facility design, and project implementation support.

Primary clients are government agencies and local authorities in the public sector, though projects for developers, landowners, and private companies represent an important revenue stream. Revenue consists of fees from public works contracts and compensation from private consulting, business outsourcing, and system implementation and maintenance services.

The business is divided into five main segments. The geospatial information division handles surveying, mapmaking, and asset management and disaster prevention using geographic data. The environmental division conducts environmental assessments, soil and water quality remediation, and sustainable urban environment planning. The design division undertakes design work for roads, bridges, water and sewage systems, seismic reinforcement, and asset management support for public facilities. The business solutions division provides comprehensive services including land subdivision, development project management, consulting linked with tax and real estate matters, and support for aging condominium redevelopment.

Ōba has set targets in its medium-term management plan for fiscal years 2024–2028 to increase consolidated revenue to 20,000 million yen (approximately 200 billion yen) by May 2028, consolidated operating profit to 2,400 million yen (approximately 24 billion yen), operating margin to 12%, and ROE/ROIC to approximately 12% each. The company has achieved 12 consecutive years of operating profit growth and debt-free management. Building on this stable earnings foundation, Ōba aims to accelerate growth while increasing total shareholder returns to 60% and dividend payout ratio to approximately 50%.

Priority investment focuses on comprehensive construction consulting services centered on "urban development," with emphasis on surveying, geospatial information, urban redevelopment, and environmental solutions. Leveraging its strength in raising the ratio of private projects (public to private ratio of 6:4), the company differentiates itself by offering one-stop services from survey and design through project execution to asset disposition. With approximately 500 technical professionals currently in place, Ōba plans to expand this to 650 personnel and improve on-site capabilities through multi-skilled workforce development.

For new market development and business expansion, the company is pursuing growth in business solution services and expanded revenue opportunities through direct participation in quality projects. Beyond public demand in disaster prevention and mitigation, national resilience, and defense-related civil engineering, Ōba will capture private development from manufacturing returning to Japan and logistics expansion, while strengthening real estate solutions including support for aging condominium redevelopment. The company also plans to expand its business scope through M&A and business partnerships with competitors and companies in other industries.

On technological innovation, Ōba is advancing both digital technology adoption ("urban development DX") and productivity improvement. Specifically, the company will enhance geospatial information development and utilization, introduce efficiency tools for design and management operations, and strengthen data integration to boost proposal capabilities and on-site productivity. In parallel, Ōba will invest in human capital through recruitment and training of technical professionals including senior workers, reinforcing both technical expertise and organizational strength.