KOZO KEIKAKU ENGINEERING HOLDINGS Inc. (208A) Stock Price

Kouzou Keikaku Research Institute Holdings operates primarily through engineering consulting and related software and cloud services. The company specializes in structural design and analysis for high-rise buildings and large-scale facilities, as well as environmental and disaster prevention assessments for earthquakes and wind. It also provides design support systems for housing and construction projects, along with decision-support services through social simulation.

Key customers include construction companies, real estate developers, manufacturers, telecommunications operators, and local governments. Revenue comes from two main sources: consulting project fees and licensing and subscription income from software and cloud services. The company secures substantial revenue from large-scale project support while stabilizing earnings through recurring product and cloud service revenue.

The business is structured around two core pillars: "Engineering Consulting" and "Products & Services." The former encompasses structural design and analysis, environmental and disaster prevention consulting, and telecommunications and manufacturing technology consulting. The latter includes analysis software and products such as fluid and powder analysis, social simulation, and people flow measurement, as well as cloud-based platforms for indoor space digitalization and access control management.

The company has set a medium to long-term management target of approximately 8% annual growth in "total value added." Specifically, the company prioritizes total value added—a metric that combines operating profit with personnel expenses and employee benefits—and aims to achieve its planned total value added of 11.277 billion yen. The company will introduce a holding company structure in June 2025 and pursue a dual strategy of maintaining high profitability in existing businesses while simultaneously achieving high growth through continuous investment in new ventures, leveraging the group's human capital. On the financial side, the company targets maintaining appropriate levels of interest-bearing debt, improving equity ratio and ROE, and providing stable dividends for long-term shareholders.

Priority investment areas are the two pillars of engineering consulting and products/cloud services. The company focuses on structural design and analysis of high-rise buildings and large-scale facilities, as well as environmental assessments for earthquakes and wind, while expanding recurring revenue through analysis software and cloud-based platforms to stabilize earnings. As a differentiation strategy, the company aims to distinguish itself through the fusion of engineering expertise and information technology leveraging diverse talent, rigorous quality management practices, and equitable customer relationships as an independent firm, thereby setting itself apart through specialized expertise and reliability.

For new market development and business expansion, the company actively pursues joint development with universities and research institutions, as well as partnerships with overseas startups. Building on research collaborations with the University of Tokyo that produced products such as iGRAF for powder simulation and RiverCast for water level prediction, the company is strengthening efforts to commercialize research findings while applying expertise gained from domestic deployment of overseas services such as Twilio and NavVis to new business ventures. Organizationally, the company plans to deepen collaboration between business development and sales divisions, focusing on scaling cloud services and launching new consulting services. On recruitment, the company is securing talent through hiring 23 new graduates and 10 career hires, with 39 new graduate offers secured for June 2026.

Regarding technology innovation, the company continues research and development investment (future investment) under a policy of combining "knowledge" with information technology, establishing mechanisms to commercialize promising research seeds. The company is strengthening technical foundations in areas such as numerical analysis, social simulation, and digitalization of indoor spaces, while prioritizing stable operation and scaling of cloud platforms. Through strengthened quality management practices reflecting past quality issues and enhanced employee expertise, the company seeks to sustain technological advantages.