TOKO ELECTRICAL CONSTRUCTION CO., LTD. (E00265) Stock Price

Toko Electric Construction is a corporate group with electrical construction work and real estate rental as its core businesses. The company handles both outdoor and indoor electrical construction projects, and has recently been actively expanding into the renewable energy sector. It also operates construction equipment rental services and air conditioning/sanitary equipment installation work, providing comprehensive electrical and construction-related services.

The company's revenue structure is centered on electrical construction work, with an efficient subcontracting system established within the group. The real estate rental business operates rental office spaces in Tokyo, Hokkaido, and other regions, serving as a stable revenue source. Additionally, the company is expanding its electrical construction business in Southeast Asian countries including Thailand, Vietnam, and Myanmar, advancing its growth in overseas markets.

The company's operations are divided into three segments: electrical construction work, real estate rental, and other businesses. In electrical construction, subsidiaries such as TK Techno Service handle construction projects, and the company also operates renewable energy businesses including solar power generation through multiple power generation companies. In other businesses, the company pursues diversified operations including insurance agency services, management of nursing care facilities, and production and sales of agricultural products.

Tokko Electrical Construction has formulated a new medium-term management plan with fiscal 2027 as its final year, strengthening its foundation for sustainable growth. The company aims to achieve consolidated performance targets of 77 billion yen in revenue and 6.2 billion yen in operating profit by fiscal 2027. To realize these numerical targets, the company is accelerating a three-year initiative positioned as a "seeding period for discontinuous growth." Looking further ahead, the company has set its vision for fiscal 2035 as realizing its purpose: "Pursuing comfort for people and society, and challenging the unseen future through technology," establishing a growth strategy with a ten-year perspective.

The company's priority investment area is strengthening its business domain centered on "Buildings & Energy Infrastructure." It has identified seven material issues, including promoting carbon-neutral society and ensuring safety and construction quality, and is focusing on technology development and human capital development toward realizing a decarbonized society. In particular, the company is advancing profit visualization by customer and project through the establishment of financial and management accounting foundations, while strengthening recruitment and development policies targeting diverse talent to secure necessary human capital in both quality and quantity.

In technology innovation, the company has positioned digital transformation as a key management strategy and is restructuring business processes centered on building the "Tokko Platform." The plan aims to improve operational efficiency and management accuracy through digitizing construction-related documents and leveraging artificial intelligence for business reform, as well as strengthening the digital foundation through enhanced IT skills across all employees. Additionally, by developing a "Building Profile Database" utilizing building information modeling, the company is accelerating the shift toward lifecycle value management of buildings and stock-based business models, expanding revenue opportunities through continuous renovation proposals.

In new market development, the company emphasizes transitioning from traditional labor-intensive to non-labor-intensive business models, promoting the adoption of advanced technologies such as wireless transmission technology and auxiliary robots through industry-academia collaboration. The company has set a target of developing at least one next-generation technology or new construction method annually, and is strengthening the "Tokko Technology" brand through advancing on-site operations using digital technology and creating new technologies. Through these initiatives, the company is pursuing sustainable management that balances corporate value enhancement with social responsibility.