TOTETSU KOGYO CO.,LTD. (1835) Stock Price

Totetsu Kogyo operates primarily in construction-related businesses, with three business segments: civil engineering, building construction, and other operations. These businesses are conducted by Totetsu Kogyo and its five subsidiaries, along with one affiliated company.

In civil engineering, Totetsu Kogyo handles planning, design, construction, and supervision of civil engineering projects. A portion of construction work is subcontracted to its subsidiaries, Totetsu Maintenance Kogyo Co., Ltd. and Zenyo Co., Ltd. East Japan Railway Company is among its major clients.

In building construction, Totetsu Kogyo undertakes planning, design, construction, and supervision of building projects. A portion of construction work is subcontracted to its subsidiary, Totetsu Souken Co., Ltd. East Japan Railway Company is also a major client in this segment.

In other operations, the company engages in commercial building leasing, power generation, and environmental businesses including greening projects. Its subsidiary Totetsu Kiko Co., Ltd. manufactures and inspects railway maintenance machinery, while Kowa Kasei Co., Ltd. manufactures and sells railway-related products. Affiliated company Nihon Senro Gijutsu Co., Ltd. provides railway-related consulting services.

Totetsu Kogyo has established a long-term vision called "TOTETSU VISION 100" to achieve sustainable growth and enhance corporate value. Under this vision, the company aims to establish itself as a leading company in transportation infrastructure maintenance. Specifically, the company is advancing its business based on five core strategies: safety strategy, order acquisition strategy, productivity improvement strategy, human resources strategy, and ESG strategy.

The company has formulated a medium-term management plan called "Action Plan 2029" through 2029 and is focusing on three priority business areas. Through this plan, the company aims to strengthen infrastructure maintenance for railway-related construction, public sector entities, and private operators, while contributing to the resolution of social issues. Additionally, the company is pursuing digital transformation through IT and AI utilization to improve safety and productivity.

Furthermore, Totetsu Kogyo prioritizes investment in human capital, enhancing the skills of employees and partner companies while promoting work style reforms. Through these efforts, the company aims to develop industry-leading talent and improve employee work satisfaction. As part of its ESG strategy, the company is strengthening environmental initiatives with the goal of achieving carbon neutrality by 2050.

The company has set targets of consolidated net sales of 190 billion yen or more and ROE of 10% or higher by 2029. To achieve these targets, the company has established an investment plan of 70 billion yen and is advancing technology development and mechanization investments. Through these initiatives, the company aims to achieve sustainable growth and enhanced corporate value, while delivering returns to stakeholders.