KUDO CORPORATION (1764) Stock Price

Kudo Construction is a company that specializes in the design, construction, and supervision of construction projects, while also operating real estate sales and leasing, comprehensive building management services, and care facilities for seniors. The company operates a diversified business model combining contract construction with real estate and care services.

The company serves a wide range of customers including local governments, private companies, individual homeowners, and tenants. Contract construction generates project-based revenue, while real estate operations produce stable income through rental fees and management commissions, and care services generate revenue from resident fees and care compensation. Management and rental income provide relatively stable cash flow.

The company's business is organized into three pillars: "Construction," "Real Estate," and "Care Services." The construction business encompasses civil engineering and architectural design, construction supervision, and custom home building. The real estate business handles maintenance and inspections, rent collection services, and leasing and sales brokerage through affiliated subsidiaries. The care services business primarily operates assisted living facilities for seniors.

Based on its medium-term management plan (with fiscal year 2026 as the final year), the company aims to "build a business foundation capable of generating stable profits." Specifically, following the consolidation of subsidiary Matsushita Kosho as of July 1, 2025, the company has set consolidated performance targets for fiscal year 2025 of 24,974 million yen in sales and 607 million yen in operating profit. Its long-term goal is to realize a "leading company connecting the future, environment, and well-being" by 2030. The company's management strategy centers on three pillars—strengthening revenue capacity, strengthening human capital, and advancing sustainability—with the aim of achieving revenue and profit growth and enhancing shareholder value.

Priority investment areas include strengthening the business foundation of real estate management and nursing care operations, in addition to the traditional core construction and housing sectors. In construction, the company will secure stable earnings through proposals for effective land utilization, long-life renovation work that maintains asset value, and expanded public works contracts. In real estate, the company will enhance added value by securing revenue from existing managed properties and acquiring new ones, while proposing maintenance and energy-efficient equipment upgrades. In subleasing, the company will differentiate itself by strengthening profitability management through securing appropriate rents and addressing vacancies. In nursing care, the company aims to improve occupancy rates and stabilize revenue by enhancing product offerings in both "housing" and "care services."

For new market development and business expansion, the company will leverage its regional strengths to expand orders in the Kanagawa and Tokyo metropolitan areas and steadily increase managed properties. The company will broaden its order pipeline by combining disaster prevention and infrastructure renewal projects for municipalities with effective land utilization projects for private clients. In nursing care, the company will strengthen its human resource foundation through enhanced new graduate recruitment, workplace retention support, and improved compensation, while exploring new revenue sources such as facility operation contracts and mixed-use development through coordination with related real estate. At the corporate level, the company is advancing measures to strengthen financial soundness through cash flow-focused management and enhanced internal controls.

In technological innovation, the company is introducing information and communication technology (ICT) and digital technologies to reduce labor requirements and improve productivity in construction. Specifically, the company is pursuing construction method improvements for site efficiency, error reduction through centralized management of design and construction data, and utilization of energy-efficient and long-life technologies for equipment upgrade proposals. Furthermore, the company is emphasizing governance and environmental responsibility by addressing ESG (environmental, social, and governance) considerations in material selection and labor management practices, thereby achieving sustainable growth and business stabilization.