TAISEI CO.,LTD. (E04962) Stock Price

Taisei Corporation is a company that provides comprehensive building management services for office buildings, city hotels, and other facilities. The company handles cleaning management, equipment operation and maintenance, security and parking lot management, renovation work, and real estate management all under one roof. Operating as a group that includes 9 subsidiaries and 1 affiliated company, the company delivers a full range of services necessary for building maintenance and management.

The company's primary customers are office building and hotel owners and operators, and it handles all general management operations essential to the daily running of these facilities. Revenue is generated from fees for various management services, and the company has built a stable income base through long-term contracts. In addition to the domestic market, the company has expanded its business to overseas markets including Vietnam and Singapore.

The company's business is divided into five segments. The cleaning operations segment handles cleaning management and bed making. The facilities management segment manages the operation and maintenance of electrical and air conditioning equipment. The security segment covers security services, parking lot management, and reception services. The renovation segment handles construction and renovation work. The real estate solutions segment manages properties, provides designated management services, and engages in public-private partnerships, supporting buildings throughout their entire lifecycle.

Under its Seventh Medium-Term Management Plan, Taisei has established revenue and operating profit margin as key performance indicators and is pursuing a growth strategy built on three pillars: improving core operations, creating second and third business pillars, and strengthening the management foundation. In the labor-intensive building maintenance industry, the company recognizes that cost management directly impacts operating profit margin. Accordingly, it has set these metrics as medium- to long-term targets and aims for continuous improvement in profitability.

The company's priority investment focus is concentrated on operational efficiency through technological innovation, particularly the active promotion of transforming non-human tasks through AI and robotics. By leveraging digital technology to transform traditional labor-intensive building maintenance operations and reallocating human resources to higher-value-added segments, the company is differentiating itself. Additionally, it is pursuing a strategy to improve business profitability through proper project management to eliminate unprofitable contracts and renegotiate service fees.

In new market development, the company aims to establish itself as a comprehensive building services provider through the creation of new services in real estate-adjacent areas. It is strengthening sales capabilities and making human capital investments to expand its integrated management and property management operations, while building systems to create and deliver value-added services. In international expansion, the company is improving business profitability by expanding building maintenance operations centered on Asia, with emphasis on local sales support and development of management talent.

As part of strengthening its management foundation, the company is advancing organizational and human resources reforms and implementing RPA systems to improve operational efficiency. While addressing labor risks inherent to its employee-intensive business model, the company is enhancing corporate value through increased public relations and investor relations activities and commitment to SDGs. In response to challenges such as reduced building occupancy rates and compensation for closures due to COVID-19, the company is pursuing greater operational efficiency to minimize deterioration in business profitability.