NOVAC CO., LTD. (5079) Stock Price

Novac operates primarily in two business segments: civil engineering and building construction. In civil engineering, the company undertakes orders from the Ministry of Land, Infrastructure, Transport and Tourism, local governments, and expressway companies to construct social infrastructure including roads, rivers, water and sewage systems, and land development projects.

Novac focuses particularly on disaster recovery and restoration work driven by increasing natural disasters, reinforcement of embankments, and road network development projects in preparation for the Nankai Trough earthquake. The company secures and executes approximately 15 construction projects annually across Japan, with operations centered in the Greater Tokyo and Kansai regions.

In building construction, Novac primarily handles multi-unit residential projects commissioned by private companies, as well as schools, welfare facilities, government buildings, offices, and service area construction for expressways. The company responds to customer needs and works to improve quality standards.

Additionally, Novac operates a real estate rental business, leasing company-owned properties to corporate clients. This diversifies revenue streams beyond the construction business.

Novac pursues sustainable growth by operating across two major segments: public works and private construction. In public works, the company has built a stable business foundation centered on civil engineering projects, which are less affected by economic fluctuations. In private construction, the company is advancing large-scale building projects to diversify its business portfolio.

The company has established a medium-term management plan called "NOVAC VISION" for 2024 through 2027, aiming to enhance corporate value and advance human capital management. Specifically, the company seeks to improve productivity and streamline operations through digital transformation (DX) initiatives, while establishing a stable revenue base.

Additionally, Novac is strengthening collaboration with TOMTEN Inc., a consolidated subsidiary, to develop new construction demand and expand business scale. Through this partnership, the company aims to create synergies and accelerate business growth.

Under its medium-term management plan, Novac targets consolidated net sales of 4 billion yen or more, an operating profit margin of 8% or above, and a workforce of 350 or more employees by 2027. These targets are designed to establish a high-profit business structure, enhance corporate value, and achieve sustainable growth.