HAZAMA ANDO CORPORATION (1719) Stock Price

Market cap
¥358.7B
P/E ratio
15.3x
Ando-Ma operates in construction through civil engineering and building projects, serving infrastructure and commercial development needs across Japan and internationally through subsidiaries.

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Business Overview

Ando-Ma is primarily engaged in construction business, divided into two segments: civil engineering and building construction. In civil engineering, the company handles infrastructure development and public works projects. In building construction, it develops commercial facilities and residential properties. This diversified approach allows the company to meet a wide range of construction needs.

The company's group subsidiaries include Ando Hazama Kogyo Co., Ltd. and Aoyama Kiko Co., Ltd. Ando Hazama Kogyo sells and leases construction materials, while Aoyama Kiko handles civil engineering and building construction projects. Together, these subsidiaries support the group's overall construction operations.

Additionally, Ryosho Development Co., Ltd. engages in real estate sales, leasing, and brokerage, pursuing synergies between construction and real estate businesses. Furthermore, the overseas subsidiary Hazama Ando (Thailand) operates construction projects locally, advancing the company's international business expansion.

Management Policy

Ando Hazama is pursuing sustainable growth under its "Ando Hazama VISION 2030" strategy. This vision aims to create value for four stakeholders—customers, shareholders, the environment, and employees—with the fundamental objective of enhancing corporate value and company appeal. In May 2023, the company formulated its "Medium-Term Management Plan 2025," focusing on business strengthening, human capital value enhancement, and ESG management initiatives.

The company is prioritizing construction business reinforcement by promoting automation and labor efficiency through ICT and AI technologies. It is also advancing production process reforms through BIM and CIM utilization. In non-construction businesses, the company has entered the grid-scale battery storage sector as part of its renewable energy operations, while implementing diverse initiatives including mid-scale mixed-use building development and establishing low-carbon manufacturing methods.

Regarding human capital value enhancement, the company prioritizes employee well-being through compensation review and professional certification support, resulting in improved employee engagement scores. In ESG management, the company has updated its greenhouse gas emission reduction target to the "1.5°C pathway" and re-obtained SBT certification, strengthening environmental commitment.

Ando Hazama targets consolidated ordinary profit of 26.5 billion yen, ROE of 12% or higher, and total shareholder return ratio of 70% or higher by the fiscal year ending March 2026. The company also aims for employee engagement scores of 80% or higher, GHG emission reductions of 34% or higher for Scope 1+2, and 21% or higher for Scope 3. Through these targets, the company seeks to contribute to a sustainable society while achieving corporate growth.

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